CORAL LAB. 2022-23 Annual Report Analysis

Mon, 6 Nov

CORAL LAB. 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.

CORAL LAB. Income Statement Analysis

• Operating income during the year rose 3.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 58.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.9% in FY23 as against 12.1% in FY22.
• Depreciation charges increased by 9.5% and finance costs increased by 140.4% YoY, respectively.
• Other income grew by 43.2% YoY.
• Net profit for the year declined by 28.8% YoY.
• Net profit margins during the year declined from 12.0% in FY22 to 8.3% in FY23.

CORAL LAB. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	756	781	3.3%
Other income	Rs m	48	69	43.2%
Total Revenues	Rs m	804	850	5.7%
Gross profit	Rs m	92	39	-58.0%
Depreciation	Rs m	20	22	9.5%
Interest	Rs m	1	3	140.4%
Profit before tax	Rs m	119	82	-30.6%
Tax	Rs m	28	18	-36.6%
Profit after tax	Rs m	90	64	-28.8%
Gross profit margin	%	12.1	4.9
Effective tax rate	%	23.7	21.7
Net profit margin	%	12.0	8.3

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CORAL LAB. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 119 million as compared to Rs 255 million in FY22, thereby witnessing an decrease of -53.5%.
• Current assets fell 6% and stood at Rs 1 billion, while fixed assets fell 14% and stood at Rs 508 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 8%.

CORAL LAB. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,561	1,548	-0.8
Current Liabilities	Rs m	255	119	-53.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,899	1,743	-8.2
Current assets	Rs m	1,308	1,235	-5.6
Fixed Assets	Rs m	591	508	-14.0
Total Assets	Rs m	1,899	1,743	-8.2

CORAL LAB. Cash Flow Statement Analysis

• CORAL LAB.'s cash flow from operating activities (CFO) during FY23 stood at Rs 127 million, an improvement of 108.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -26 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -64 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 36 million from the Rs 2 million net cash flows seen during FY22.

CORAL LAB. 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	61	127	108.2%
Cash Flow from Investing Activities	Rs m	-61	-26	-
Cash Flow from Financing Activities	Rs m	1	-64	-
Net Cash Flow	Rs m	2	36	1,891.2%

Current Valuations for CORAL LAB.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.1, an decline from the EPS of Rs 25.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 291.6, stands at 15.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	211.8	218.8
TTM Earnings per share	Rs	25.3	18.1
Diluted earnings per share	Rs	25.3	18.0
Price to Cash Flow	x	8.3	12.1
TTM P/E ratio	x	10.1	15.5
Price / Book Value ratio	x	0.9	0.7
Market Cap	Rs m	1,451	1,045
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CORAL LAB.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 10.4x during FY23, from 5.1x 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 25.3x during FY23, from 85.1x 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 4.2% during FY23, from 5.8% 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 5.5% during FY23, from 7.7% 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 3.9% during FY23, from 4.8% 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	5.1	10.4
Debtors’ Days	Days	1,840	1,094
Interest coverage	x	85.1	25.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.8	3.9
Return on equity	%	5.8	4.2
Return on capital employed	%	7.7	5.5

To see how CORAL LAB. has performed over the last 5 years, please visit here.

CORAL LAB. Share Price Performance

Over the last one year, CORAL LAB. share price has moved up from Rs 259.9 to Rs 291.6, registering a gain of Rs 31.7 or around 12.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,897.5 (up 0.5%). Over the last one year it has moved up from 24,262.5 to 27,897.5, a gain of 3,635 points (up 15.0%).

Overall, the S&P BSE SENSEX is up 6.3% over the year.

(To know more, check out historical annual results for CORAL LAB. and quarterly results for CORAL LAB.)