GUFIC BIOSCIENCE 2022-23 Annual Report Analysis

Thu, 14 Sep

GUFIC BIOSCIENCE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

GUFIC BIOSCIENCE Income Statement Analysis

• Operating income during the year fell 11.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.5% in FY23 as against 19.0% in FY22.
• Depreciation charges increased by 17.7% and finance costs increased by 53.2% YoY, respectively.
• Other income declined by 17.1% YoY.
• Net profit for the year declined by 16.8% YoY.
• Net profit margins during the year declined from 12.3% in FY22 to 11.5% in FY23.

GUFIC BIOSCIENCE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,792	6,906	-11.4%
Other income	Rs m	31	26	-17.1%
Total Revenues	Rs m	7,823	6,932	-11.4%
Gross profit	Rs m	1,480	1,347	-9.0%
Depreciation	Rs m	189	223	17.7%
Interest	Rs m	54	82	53.2%
Profit before tax	Rs m	1,268	1,067	-15.9%
Tax	Rs m	310	270	-12.8%
Profit after tax	Rs m	958	797	-16.8%
Gross profit margin	%	19.0	19.5
Effective tax rate	%	24.4	25.3
Net profit margin	%	12.3	11.5

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GUFIC BIOSCIENCE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 54.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 480 million during FY22, a growth of 297.4%.
• Current assets rose 45% and stood at Rs 5 billion, while fixed assets rose 97% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 65%.

GUFIC BIOSCIENCE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,691	3,478	29.2
Current Liabilities	Rs m	1,864	2,882	54.6
Long-term Debt	Rs m	480	1,907	297.4
Total Liabilities	Rs m	5,214	8,602	65.0
Current assets	Rs m	3,208	4,641	44.7
Fixed Assets	Rs m	2,006	3,961	97.4
Total Assets	Rs m	5,214	8,602	65.0

GUFIC BIOSCIENCE Cash Flow Statement Analysis

• GUFIC BIOSCIENCE's cash flow from operating activities (CFO) during FY23 stood at Rs -266 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 101.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 3,853% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 170 million from the Rs 54 million net cash flows seen during FY22.

GUFIC BIOSCIENCE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,062	-266	-
Cash Flow from Investing Activities	Rs m	-946	-1,907	-
Cash Flow from Financing Activities	Rs m	-62	2,343	-
Net Cash Flow	Rs m	54	170	214.3%

Current Valuations for GUFIC BIOSCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an decline from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 295.8, stands at 36.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.2 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 22.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	80.4	71.2
TTM Earnings per share	Rs	9.9	8.2
Diluted earnings per share	Rs	9.9	8.2
Price to Cash Flow	x	21.0	22.2
TTM P/E ratio	x	25.2	36.2
Price / Book Value ratio	x	6.8	6.5
Market Cap	Rs m	18,308	22,620
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for GUFIC BIOSCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.7x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 14.0x during FY23, from 24.6x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 22.9% during FY23, from 35.6% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 21.3% during FY23, from 41.7% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 10.2% during FY23, from 19.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.7	1.6
Debtors’ Days	Days	710	1,086
Interest coverage	x	24.6	14.0
Debt to equity ratio	x	0.2	0.5
Return on assets	%	19.4	10.2
Return on equity	%	35.6	22.9
Return on capital employed	%	41.7	21.3

To see how GUFIC BIOSCIENCE has performed over the last 5 years, please visit here.

GUFIC BIOSCIENCE Share Price Performance

Over the last one year, GUFIC BIOSCIENCE share price has moved up from Rs 238.3 to Rs 295.8, registering a gain of Rs 57.6 or around 24.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,533.2 (up 0.3%). Over the last one year it has moved up from 23,198.0 to 28,533.2, a gain of 5,335 points (up 23.0%).

Overall, the S&P BSE SENSEX is up 12.2% over the year.

(To know more, check out historical annual results for GUFIC BIOSCIENCE and quarterly results for GUFIC BIOSCIENCE)