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INDOCO REMEDIES 2022-23 Annual Report Analysis

Tue, 26 Sep

INDOCO REMEDIES 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.

INDOCO REMEDIES Income Statement Analysis

• Operating income during the year rose 8.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 12.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.1% in FY23 as against 21.2% in FY22.
• Depreciation charges decreased by 10.6% and finance costs increased by 77.0% YoY, respectively.
• Other income declined by 30.3% YoY.
• Net profit for the year declined by 8.1% YoY.
• Net profit margins during the year declined from 10.0% in FY22 to 8.5% in FY23.

INDOCO REMEDIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,408	16,686	8.3%
Other income	Rs m	34	24	-30.3%
Total Revenues	Rs m	15,442	16,710	8.2%
Gross profit	Rs m	3,263	2,860	-12.3%
Depreciation	Rs m	790	706	-10.6%
Interest	Rs m	141	250	77.0%
Profit before tax	Rs m	2,366	1,928	-18.5%
Tax	Rs m	818	505	-38.2%
Profit after tax	Rs m	1,548	1,423	-8.1%
Gross profit margin	%	21.2	17.1
Effective tax rate	%	34.6	26.2
Net profit margin	%	10.0	8.5

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INDOCO REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -18.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 959 million during FY22, a growth of 49.7%.
• Current assets fell 7% and stood at Rs 8 billion, while fixed assets rose 27% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 16 billion during FY22, thereby witnessing a growth of 9%.

INDOCO REMEDIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	9,046	10,276	13.6
Current Liabilities	Rs m	5,182	4,245	-18.1
Long-term Debt	Rs m	959	1,435	49.7
Total Liabilities	Rs m	15,794	17,137	8.5
Current assets	Rs m	8,669	8,082	-6.8
Fixed Assets	Rs m	7,125	9,055	27.1
Total Assets	Rs m	15,794	17,137	8.5

INDOCO REMEDIES Cash Flow Statement Analysis

• INDOCO REMEDIES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 2.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 71.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 228 million, an improvement of 151% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -65 million from the Rs 80 million net cash flows seen during FY22.

INDOCO REMEDIES 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	1,738	1,788	2.9%
Cash Flow from Investing Activities	Rs m	-1,214	-2,082	-
Cash Flow from Financing Activities	Rs m	-444	228	-
Net Cash Flow	Rs m	80	-65	-

Current Valuations for INDOCO REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.4, an decline from the EPS of Rs 16.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 333.6, stands at 24.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 15.8 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	167.2	181.1
TTM Earnings per share	Rs	16.8	15.4
Diluted earnings per share	Rs	16.8	15.4
Price to Cash Flow	x	14.8	15.8
TTM P/E ratio	x	22.4	24.0
Price / Book Value ratio	x	4.1	3.3
Market Cap	Rs m	37,540	33,683
Dividends per share (Unadj.)	Rs	2.3	2.3

Ratio Analysis for INDOCO REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 8.7x during FY23, from 17.7x 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 13.8% during FY23, from 17.1% 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 18.6% during FY23, from 25.1% 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 9.8% during FY23, from 10.7% 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	1.9
Debtors’ Days	Days	704	768
Interest coverage	x	17.7	8.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.7	9.8
Return on equity	%	17.1	13.8
Return on capital employed	%	25.1	18.6

To see how INDOCO REMEDIES has performed over the last 5 years, please visit here.

INDOCO REMEDIES Share Price Performance

Over the last one year, INDOCO REMEDIES share price has moved up from Rs 332.9 to Rs 333.6, registering a gain of Rs 0.7 or around 0.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,758.6 (down 0.2%). Over the last one year it has moved up from 22,611.9 to 27,758.6, a gain of 5,147 points (up 22.8%).

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for INDOCO REMEDIES and quarterly results for INDOCO REMEDIES)