LAURUS LABS 2022-23 Annual Report Analysis

Thu, 22 Jun

LAURUS LABS 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.

LAURUS LABS Income Statement Analysis

• Operating income during the year rose 22.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.4% in FY23 as against 28.8% in FY22.
• Depreciation charges increased by 28.9% and finance costs increased by 61.3% YoY, respectively.
• Other income declined by 60.8% YoY.
• Net profit for the year declined by 4.3% YoY.
• Net profit margins during the year declined from 16.9% in FY22 to 13.2% in FY23.

LAURUS LABS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	49,356	60,406	22.4%
Other income	Rs m	153	60	-60.8%
Total Revenues	Rs m	49,509	60,466	22.1%
Gross profit	Rs m	14,224	15,922	11.9%
Depreciation	Rs m	2,515	3,241	28.9%
Interest	Rs m	1,024	1,652	61.3%
Profit before tax	Rs m	10,839	11,089	2.3%
Tax	Rs m	2,514	3,123	24.2%
Profit after tax	Rs m	8,324	7,966	-4.3%
Gross profit margin	%	28.8	26.4
Effective tax rate	%	23.2	28.2
Net profit margin	%	16.9	13.2

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LAURUS LABS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 24 billion as compared to Rs 27 billion in FY22, thereby witnessing an decrease of -9.3%.
• Long-term debt stood at Rs 8 billion as compared to Rs 6 billion during FY22, a growth of 27.7%.
• Current assets rose 4% and stood at Rs 35 billion, while fixed assets rose 16% and stood at Rs 42 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 77 billion as against Rs 70 billion during FY22, thereby witnessing a growth of 10%.

LAURUS LABS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	33,420	40,255	20.4
Current Liabilities	Rs m	26,810	24,323	-9.3
Long-term Debt	Rs m	5,963	7,614	27.7
Total Liabilities	Rs m	69,680	76,604	9.9
Current assets	Rs m	33,446	34,617	3.5
Fixed Assets	Rs m	36,234	41,987	15.9
Total Assets	Rs m	69,680	76,604	9.9

LAURUS LABS Cash Flow Statement Analysis

• LAURUS LABS 's cash flow from operating activities (CFO) during FY23 stood at Rs 10 billion, an improvement of 9.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -10 billion, an improvement of 8.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -266 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -297 million from the Rs 269 million net cash flows seen during FY22.

LAURUS LABS 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	9,111	9,939	9.1%
Cash Flow from Investing Activities	Rs m	-9,143	-9,961	-
Cash Flow from Financing Activities	Rs m	303	-266	-
Net Cash Flow	Rs m	269	-297	-

Current Valuations for LAURUS LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.8, an decline from the EPS of Rs 15.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 365.1, stands at 24.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 21.9 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	91.8	112.1
TTM Earnings per share	Rs	15.5	14.8
Diluted earnings per share	Rs	15.5	14.8
Price to Cash Flow	x	29.3	21.9
TTM P/E ratio	x	38.2	24.7
Price / Book Value ratio	x	8.7	6.1
Market Cap	Rs m	291,289	245,840
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for LAURUS LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.2x 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 7.7x during FY23, from 11.6x 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 19.8% during FY23, from 24.9% 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 26.6% during FY23, from 30.1% 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 12.6% during FY23, from 13.4% 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	1.2	1.4
Debtors’ Days	Days	10	10
Interest coverage	x	11.6	7.7
Debt to equity ratio	x	0.2	0.2
Return on assets	%	13.4	12.6
Return on equity	%	24.9	19.8
Return on capital employed	%	30.1	26.6

To see how LAURUS LABS has performed over the last 5 years, please visit here.

LAURUS LABS Share Price Performance

Over the last one year, LAURUS LABS share price has moved down from Rs 451.5 to Rs 365.1, registering a loss of Rs 86.4 or around 19.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,036.3 (down 0.3%). Over the last one year it has moved up from 21,241.4 to 25,036.3, a gain of 3,795 points (up 17.9%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for LAURUS LABS and quarterly results for LAURUS LABS )