We are currently facing an issue in receiving the NSE feed. Hence the stock prices are not updated. We are working on fixing this at the earliest. We regret the inconvenience caused.

LYKA LABS 2022-23 Annual Report Analysis

Thu, 14 Sep

LYKA 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.

LYKA LABS Income Statement Analysis

• Operating income during the year fell 52.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 90.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY23 as against 48.8% in FY22.
• Depreciation charges decreased by 18.5% and finance costs decreased by 41.0% YoY, respectively.
• Other income grew by 62.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 19.8% in FY22 to 14.1% in FY23.

LYKA LABS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,941	931	-52.0%
Other income	Rs m	21	34	62.4%
Total Revenues	Rs m	1,962	965	-50.8%
Gross profit	Rs m	946	94	-90.0%
Depreciation	Rs m	173	141	-18.5%
Interest	Rs m	201	119	-41.0%
Profit before tax	Rs m	592	-132	NA
Tax	Rs m	208	0	NA
Profit after tax	Rs m	384	-132	NA
Gross profit margin	%	48.8	10.1
Effective tax rate	%	35.1	0.1
Net profit margin	%	19.8	-14.1

RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

LYKA LABS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 326 million as compared to Rs 994 million in FY22, thereby witnessing an decrease of -67.2%.
• Long-term debt stood at Rs 638 million as compared to Rs 625 million during FY22, a growth of 2.1%.
• Current assets fell 15% and stood at Rs 442 million, while fixed assets fell 20% and stood at Rs 1 billion 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 fall of 18%.

LYKA LABS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	133	280	109.9
Current Liabilities	Rs m	994	326	-67.2
Long-term Debt	Rs m	625	638	2.1
Total Liabilities	Rs m	1,856	1,515	-18.4
Current assets	Rs m	522	442	-15.3
Fixed Assets	Rs m	1,334	1,073	-19.6
Total Assets	Rs m	1,856	1,515	-18.4

LYKA LABS Cash Flow Statement Analysis

• LYKA LABS's cash flow from operating activities (CFO) during FY23 stood at Rs 90 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 74 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -216 million, an improvement of 66% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -53 million from the Rs 99 million net cash flows seen during FY22.

LYKA 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	792	90	-88.7%
Cash Flow from Investing Activities	Rs m	-62	74	-
Cash Flow from Financing Activities	Rs m	-632	-216	-
Net Cash Flow	Rs m	99	-53	-

Current Valuations for LYKA LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.3, an decline from the EPS of Rs 13.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.5, stands at -23.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.3 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 465.7 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	67.6	30.3
TTM Earnings per share	Rs	13.4	-4.3
Diluted earnings per share	Rs	11.6	-4.0
Price to Cash Flow	x	8.0	465.7
TTM P/E ratio	x	11.7	-23.6
Price / Book Value ratio	x	31.4	16.5
Market Cap	Rs m	4,189	4,634
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LYKA LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 0.5x 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 -0.1x during FY23, from 3.9x 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 -47.0% during FY23, from 288.2% 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 -1.4% during FY23, from 104.7% 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 -0.8% during FY23, from 31.6% 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	0.5	1.4
Debtors’ Days	Days	347	789
Interest coverage	x	3.9	-0.1
Debt to equity ratio	x	4.7	2.3
Return on assets	%	31.6	-0.8
Return on equity	%	288.2	-47.0
Return on capital employed	%	104.7	-1.4

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

LYKA LABS Share Price Performance

Over the last one year, LYKA LABS share price has moved down from Rs 144.7 to Rs 112.5, registering a loss of Rs 32.2 or around 22.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,518.8 (up 0.3%). Over the last one year it has moved up from 23,198.0 to 28,518.8, a gain of 5,321 points (up 22.9%).

Overall, the S&P BSE SENSEX is up 12.2% over the year.

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