LACTOSE INDIA 2022-23 Annual Report Analysis

Fri, 25 Aug

LACTOSE INDIA 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.

LACTOSE INDIA Income Statement Analysis

• Operating income during the year rose 43.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.4% in FY23 as against 26.7% in FY22.
• Depreciation charges increased by 2.8% and finance costs increased by 18.0% YoY, respectively.
• Other income grew by 25.9% YoY.
• Net profit for the year declined by 50.7% YoY.
• Net profit margins during the year declined from 5.3% in FY22 to 1.8% in FY23.

LACTOSE INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	459	658	43.2%
Other income	Rs m	6	7	25.9%
Total Revenues	Rs m	465	665	43.0%
Gross profit	Rs m	123	115	-6.6%
Depreciation	Rs m	46	47	2.8%
Interest	Rs m	51	60	18.0%
Profit before tax	Rs m	32	15	-53.7%
Tax	Rs m	7	3	-64.2%
Profit after tax	Rs m	25	12	-50.7%
Gross profit margin	%	26.7	17.4
Effective tax rate	%	22.6	17.5
Net profit margin	%	5.3	1.8

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LACTOSE INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 266 million as compared to Rs 149 million in FY22, thereby witnessing an increase of 78.2%.
• Long-term debt down at Rs 330 million as compared to Rs 343 million during FY22, a fall of 3.5%.
• Current assets rose 65% and stood at Rs 375 million, while fixed assets fell 5% and stood at Rs 643 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 902 million during FY22, thereby witnessing a growth of 13%.

LACTOSE INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	393	406	3.2
Current Liabilities	Rs m	149	266	78.2
Long-term Debt	Rs m	343	330	-3.5
Total Liabilities	Rs m	902	1,018	12.8
Current assets	Rs m	227	375	64.8
Fixed Assets	Rs m	675	643	-4.7
Total Assets	Rs m	902	1,018	12.8

LACTOSE INDIA Cash Flow Statement Analysis

• LACTOSE INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 81 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -10 million, an improvement of 81.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -84 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -13 million from the Rs -2 million net cash flows seen during FY22.

LACTOSE INDIA 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	85	81	-4.8%
Cash Flow from Investing Activities	Rs m	-6	-10	-
Cash Flow from Financing Activities	Rs m	-81	-84	-
Net Cash Flow	Rs m	-2	-13	-

Current Valuations for LACTOSE INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an decline from the EPS of Rs 1.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 68.0, stands at 41.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 14.5 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	36.5	52.3
TTM Earnings per share	Rs	1.9	1.0
Diluted earnings per share	Rs	1.9	1.0
Price to Cash Flow	x	10.8	14.5
TTM P/E ratio	x	30.8	41.2
Price / Book Value ratio	x	1.4	2.1
Market Cap	Rs m	545	854
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LACTOSE INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.5x 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 1.2x during FY23, from 1.6x 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 3.0% during FY23, from 6.2% 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 10.2% during FY23, from 11.3% 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 7.1% during FY23, from 8.4% 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	1.5	1.4
Debtors’ Days	Days	902	693
Interest coverage	x	1.6	1.2
Debt to equity ratio	x	0.9	0.8
Return on assets	%	8.4	7.1
Return on equity	%	6.2	3.0
Return on capital employed	%	11.3	10.2

To see how LACTOSE INDIA has performed over the last 5 years, please visit here.

LACTOSE INDIA Share Price Performance

Over the last one year, LACTOSE INDIA share price has moved down from Rs 68.3 to Rs 68.0, registering a loss of Rs 0.3 or around 0.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,642.3 (down 0.9%). Over the last one year it has moved up from 22,761.9 to 27,642.3, a gain of 4,880 points (up 21.4%).

Overall, the S&P BSE SENSEX is up 9.9% over the year.

(To know more, check out historical annual results for LACTOSE INDIA and quarterly results for LACTOSE INDIA)