KRSNAA DIAGNOSTICS 2022-23 Annual Report Analysis

Thu, 21 Sep

KRSNAA DIAGNOSTICS 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.

KRSNAA DIAGNOSTICS Income Statement Analysis

• Operating income during the year rose 7.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.1% in FY23 as against 28.9% in FY22.
• Depreciation charges increased by 29.9% and finance costs decreased by 58.4% YoY, respectively.
• Other income grew by 30.0% YoY.
• Net profit for the year declined by 9.2% YoY.
• Net profit margins during the year declined from 15.0% in FY22 to 12.8% in FY23.

KRSNAA DIAGNOSTICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,555	4,871	7.0%
Other income	Rs m	149	194	30.0%
Total Revenues	Rs m	4,704	5,065	7.7%
Gross profit	Rs m	1,315	1,223	-7.0%
Depreciation	Rs m	414	538	29.9%
Interest	Rs m	185	77	-58.4%
Profit before tax	Rs m	865	802	-7.3%
Tax	Rs m	181	181	-0.2%
Profit after tax	Rs m	684	621	-9.2%
Gross profit margin	%	28.9	25.1
Effective tax rate	%	20.9	22.6
Net profit margin	%	15.0	12.8

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KRSNAA DIAGNOSTICS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 992 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -18.0%.
• Long-term debt down at Rs 243 million as compared to Rs 331 million during FY22, a fall of 26.6%.
• Current assets fell 32% and stood at Rs 2 billion, while fixed assets rose 26% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 4%.

KRSNAA DIAGNOSTICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,824	7,361	7.9
Current Liabilities	Rs m	1,210	992	-18.0
Long-term Debt	Rs m	331	243	-26.6
Total Liabilities	Rs m	8,754	9,085	3.8
Current assets	Rs m	3,341	2,258	-32.4
Fixed Assets	Rs m	5,412	6,827	26.1
Total Assets	Rs m	8,754	9,085	3.8

KRSNAA DIAGNOSTICS Cash Flow Statement Analysis

• KRSNAA DIAGNOSTICS's cash flow from operating activities (CFO) during FY23 stood at Rs 763 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -331 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -657 million from the Rs 638 million net cash flows seen during FY22.

KRSNAA DIAGNOSTICS 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	1,284	763	-40.6%
Cash Flow from Investing Activities	Rs m	-2,406	-1,089	-
Cash Flow from Financing Activities	Rs m	1,760	-331	-
Net Cash Flow	Rs m	638	-657	-

Current Valuations for KRSNAA DIAGNOSTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.8, an decline from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 650.8, stands at 32.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 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	145.0	155.1
TTM Earnings per share	Rs	21.8	19.8
Diluted earnings per share	Rs	21.8	19.8
Price to Cash Flow	x	13.9	13.7
TTM P/E ratio	x	22.3	32.7
Price / Book Value ratio	x	3.6	2.2
Market Cap	Rs m	24,796	15,840
Dividends per share (Unadj.)	Rs	2.5	2.8

Ratio Analysis for KRSNAA DIAGNOSTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY23, from 2.8x 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 improved and stood at 11.4x during FY23, from 5.7x 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 8.4% during FY23, from 10.0% 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 11.6% during FY23, from 14.7% 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 7.7% during FY23, from 9.9% 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	2.8	2.3
Debtors’ Days	Days	46	55
Interest coverage	x	5.7	11.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.9	7.7
Return on equity	%	10.0	8.4
Return on capital employed	%	14.7	11.6

To see how KRSNAA DIAGNOSTICS has performed over the last 5 years, please visit here.

KRSNAA DIAGNOSTICS Share Price Performance

Over the last one year, KRSNAA DIAGNOSTICS share price has moved up from Rs 490.6 to Rs 650.8, registering a gain of Rs 160.3 or around 32.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,144.1 (down 0.7%). Over the last one year it has moved up from 23,092.9 to 28,144.1, a gain of 5,051 points (up 21.9%).

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for KRSNAA DIAGNOSTICS and quarterly results for KRSNAA DIAGNOSTICS)