LUPIN 2022-23 Annual Report Analysis

Mon, 17 Jul

LUPIN 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.

LUPIN Income Statement Analysis

• Operating income during the year rose 1.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 698.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.3% in FY23 as against 1.3% in FY22.
• Depreciation charges decreased by 46.9% and finance costs increased by 92.1% YoY, respectively.
• Other income declined by 29.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 9.2% in FY22 to 2.7% in FY23.

LUPIN Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	164,055	166,417	1.4%
Other income	Rs m	2,137	1,509	-29.4%
Total Revenues	Rs m	166,192	167,926	1.0%
Gross profit	Rs m	2,156	17,206	698.0%
Depreciation	Rs m	16,587	8,807	-46.9%
Interest	Rs m	1,428	2,743	92.1%
Profit before tax	Rs m	-13,722	7,165	NA
Tax	Rs m	1,372	2,688	96.0%
Profit after tax	Rs m	-15,094	4,477	NA
Gross profit margin	%	1.3	10.3
Effective tax rate	%	-10.0	37.5
Net profit margin	%	-9.2	2.7

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LUPIN Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 93 billion as compared to Rs 83 billion in FY22, thereby witnessing an increase of 11.9%.
• Long-term debt down at Rs 275 million as compared to Rs 1 billion during FY22, a fall of 80.6%.
• Current assets fell 0% and stood at Rs 125 billion, while fixed assets rose 13% and stood at Rs 103 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 228 billion as against Rs 217 billion during FY22, thereby witnessing a growth of 5%.

LUPIN Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	119,915	123,156	2.7
Current Liabilities	Rs m	82,764	92,654	11.9
Long-term Debt	Rs m	1,419	275	-80.6
Total Liabilities	Rs m	216,515	228,003	5.3
Current assets	Rs m	124,577	124,513	-0.1
Fixed Assets	Rs m	91,938	103,490	12.6
Total Assets	Rs m	216,515	228,003	5.3

LUPIN Cash Flow Statement Analysis

• LUPIN's cash flow from operating activities (CFO) during FY23 stood at Rs 19 billion, an improvement of 416.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -13 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs 872 million net cash flows seen during FY22.

LUPIN 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	3,673	18,972	416.5%
Cash Flow from Investing Activities	Rs m	12,922	-12,868	-
Cash Flow from Financing Activities	Rs m	-15,723	-3,373	-
Net Cash Flow	Rs m	872	2,732	213.3%

Current Valuations for LUPIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.8, an improvement from the EPS of Rs -33.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 932.1, stands at 94.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 23.7 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	361.0	365.8
TTM Earnings per share	Rs	-33.2	9.8
Diluted earnings per share	Rs	-33.2	9.8
Price to Cash Flow	x	227.3	23.7
TTM P/E ratio	x	-22.5	94.7
Price / Book Value ratio	x	3.7	2.6
Market Cap	Rs m	442,238	314,381
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for LUPIN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 improved and stood at 3.6x during FY23, from -8.6x 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 improved and stood at 3.6% during FY23, from -12.6% 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 8.0% during FY23, from -10.1% 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 improved and stood at 3.2% during FY23, from -6.3% 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	1.3
Debtors’ Days	Days	95	98
Interest coverage	x	-8.6	3.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-6.3	3.2
Return on equity	%	-12.6	3.6
Return on capital employed	%	-10.1	8.0

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

LUPIN Share Price Performance

Over the last one year, LUPIN share price has moved up from Rs 640.5 to Rs 932.1, registering a gain of Rs 291.6 or around 45.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,443.1 (up 0.8%). Over the last one year it has moved up from 22,591.9 to 26,443.1, a gain of 3,851 points (up 17.0%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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