DR. LAL PATHLABS 2022-23 Annual Report Analysis

Mon, 21 Aug

DR. LAL PATHLABS 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.

DR. LAL PATHLABS Income Statement Analysis

• Operating income during the year fell 3.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.3% in FY23 as against 26.9% in FY22.
• Depreciation charges increased by 38.9% and finance costs increased by 24.4% YoY, respectively.
• Other income declined by 20.6% YoY.
• Net profit for the year declined by 31.2% YoY.
• Net profit margins during the year declined from 16.8% in FY22 to 12.0% in FY23.

DR. LAL PATHLABS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,874	20,169	-3.4%
Other income	Rs m	525	417	-20.6%
Total Revenues	Rs m	21,400	20,586	-3.8%
Gross profit	Rs m	5,607	4,898	-12.6%
Depreciation	Rs m	1,081	1,502	38.9%
Interest	Rs m	302	375	24.4%
Profit before tax	Rs m	4,750	3,438	-27.6%
Tax	Rs m	1,247	1,028	-17.6%
Profit after tax	Rs m	3,503	2,411	-31.2%
Gross profit margin	%	26.9	24.3
Effective tax rate	%	26.3	29.9
Net profit margin	%	16.8	12.0

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DR. LAL PATHLABS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -6.0%.
• Long-term debt down at Rs 833 million as compared to Rs 2 billion during FY22, a fall of 50.0%.
• Current assets rose 11% and stood at Rs 10 billion, while fixed assets fell 4% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 23 billion as against Rs 23 billion during FY22, thereby witnessing a growth of 2%.

DR. LAL PATHLABS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,433	16,080	11.4
Current Liabilities	Rs m	5,000	4,698	-6.0
Long-term Debt	Rs m	1,668	833	-50.0
Total Liabilities	Rs m	23,097	23,451	1.5
Current assets	Rs m	8,752	9,731	11.2
Fixed Assets	Rs m	14,346	13,721	-4.4
Total Assets	Rs m	23,097	23,451	1.5

DR. LAL PATHLABS Cash Flow Statement Analysis

• DR. LAL PATHLABS's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 2.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY22.

DR. LAL PATHLABS 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	4,467	4,560	2.1%
Cash Flow from Investing Activities	Rs m	-4,492	-2,873	-
Cash Flow from Financing Activities	Rs m	1,365	-2,832	-
Net Cash Flow	Rs m	1,339	-1,145	-

Current Valuations for DR. LAL PATHLABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.9, an decline from the EPS of Rs 42.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,249.1, stands at 70.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 9.3 times.
• The company's price to cash flow (P/CF) ratio stood at 49.4 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	250.5	241.9
TTM Earnings per share	Rs	42.0	28.9
Diluted earnings per share	Rs	42.0	28.9
Price to Cash Flow	x	47.5	49.4
TTM P/E ratio	x	62.1	70.4
Price / Book Value ratio	x	18.8	12.0
Market Cap	Rs m	271,229	193,109
Dividends per share (Unadj.)	Rs	12.0	12.0

Ratio Analysis for DR. LAL PATHLABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 1.8x 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 10.2x during FY23, from 16.7x 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 15.0% during FY23, from 24.3% 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 22.5% during FY23, from 31.4% 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 11.9% during FY23, from 16.5% 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	1.8	2.1
Debtors’ Days	Days	15	13
Interest coverage	x	16.7	10.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	16.5	11.9
Return on equity	%	24.3	15.0
Return on capital employed	%	31.4	22.5

To see how DR. LAL PATHLABS has performed over the last 5 years, please visit here.

DR. LAL PATHLABS Share Price Performance

Over the last one year, DR. LAL PATHLABS share price has moved down from Rs 2,449.7 to Rs 2,249.1, registering a loss of Rs 200.6 or around 8.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,981.7 (up 0.6%). Over the last one year it has moved up from 22,981.2 to 27,981.7, a gain of 5,000 points (up 21.8%).

Overall, the S&P BSE SENSEX is up 8.3% over the year.

(To know more, check out historical annual results for DR. LAL PATHLABS and quarterly results for DR. LAL PATHLABS)