KILITCH DRUGS 2022-23 Annual Report Analysis

Tue, 20 Feb

KILITCH DRUGS 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.

KILITCH DRUGS Income Statement Analysis

• Operating income during the year rose 22.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.7% in FY23 as against 9.2% in FY22.
• Depreciation charges increased by 44.0% and finance costs increased by 281.9% YoY, respectively.
• Other income grew by 0.3% YoY.
• Net profit for the year grew by 33.3% YoY.
• Net profit margins during the year grew from 5.4% in FY22 to 5.9% in FY23.

KILITCH DRUGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,142	1,396	22.2%
Other income	Rs m	29	29	0.3%
Total Revenues	Rs m	1,171	1,425	21.7%
Gross profit	Rs m	105	177	68.8%
Depreciation	Rs m	25	36	44.0%
Interest	Rs m	13	51	281.9%
Profit before tax	Rs m	96	120	25.0%
Tax	Rs m	34	37	9.7%
Profit after tax	Rs m	62	83	33.3%
Gross profit margin	%	9.2	12.7
Effective tax rate	%	35.4	31.1
Net profit margin	%	5.4	5.9

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KILITCH DRUGS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 689 million as compared to Rs 693 million in FY22, thereby witnessing an decrease of -0.6%.
• Current assets rose 11% and stood at Rs 1 billion, while fixed assets fell 3% and stood at Rs 911 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 growth of 4%.

KILITCH DRUGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,362	1,462	7.3
Current Liabilities	Rs m	693	689	-0.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,083	2,175	4.4
Current assets	Rs m	1,141	1,264	10.8
Fixed Assets	Rs m	942	911	-3.3
Total Assets	Rs m	2,083	2,175	4.4

KILITCH DRUGS Cash Flow Statement Analysis

• KILITCH DRUGS's cash flow from operating activities (CFO) during FY23 stood at Rs 26 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 79 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 98 million from the Rs -24 million net cash flows seen during FY22.

KILITCH DRUGS 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	58	26	-55.3%
Cash Flow from Investing Activities	Rs m	-153	79	-
Cash Flow from Financing Activities	Rs m	70	-7	-
Net Cash Flow	Rs m	-24	98	-

Current Valuations for KILITCH DRUGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.3, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 139.6, stands at 27.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 22.4 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	73.3	89.6
TTM Earnings per share	Rs	4.0	5.3
Diluted earnings per share	Rs	3.9	5.2
Price to Cash Flow	x	31.1	22.4
TTM P/E ratio	x	43.4	27.1
Price / Book Value ratio	x	2.0	1.8
Market Cap	Rs m	2,775	2,646
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KILITCH DRUGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.6x 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 3.4x during FY23, from 8.2x 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 improved and stood at 5.7% during FY23, from 4.6% 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 improved and stood at 11.7% during FY23, from 8.0% 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 improved and stood at 6.1% during FY23, from 3.6% 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	1.6	1.8
Debtors’ Days	Days	1,323	1,419
Interest coverage	x	8.2	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.6	6.1
Return on equity	%	4.6	5.7
Return on capital employed	%	8.0	11.7

To see how KILITCH DRUGS has performed over the last 5 years, please visit here.

KILITCH DRUGS Share Price Performance

Over the last one year, KILITCH DRUGS share price has moved down from Rs 167.7 to Rs 139.6, registering a loss of Rs 28.2 or around 16.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,883.5 (up 0.4%). Over the last one year it has moved down from 24,303.8 to 21,883.5, a loss of 2,420 points (down 10.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for KILITCH DRUGS and quarterly results for KILITCH DRUGS)