MANKIND PHARMA 2022-23 Annual Report Analysis

Thu, 14 Sep

MANKIND PHARMA 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.

MANKIND PHARMA Income Statement Analysis

• Operating income during the year rose 12.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.9% in FY23 as against 25.8% in FY22.
• Depreciation charges increased by 95.6% and finance costs decreased by 23.5% YoY, respectively.
• Other income declined by 34.4% YoY.
• Net profit for the year declined by 9.9% YoY.
• Net profit margins during the year declined from 18.7% in FY22 to 15.0% in FY23.

MANKIND PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	77,816	87,494	12.4%
Other income	Rs m	1,960	1,286	-34.4%
Total Revenues	Rs m	79,776	88,780	11.3%
Gross profit	Rs m	20,050	19,144	-4.5%
Depreciation	Rs m	1,666	3,259	95.6%
Interest	Rs m	598	458	-23.5%
Profit before tax	Rs m	19,746	16,712	-15.4%
Tax	Rs m	5,216	3,616	-30.7%
Profit after tax	Rs m	14,530	13,097	-9.9%
Gross profit margin	%	25.8	21.9
Effective tax rate	%	26.4	21.6
Net profit margin	%	18.7	15.0

Revealed: Indirect Path to Riding EV Opportunity

MANKIND PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 19 billion as compared to Rs 26 billion in FY22, thereby witnessing an decrease of -29.0%.
• Long-term debt down at Rs 231 million as compared to Rs 492 million during FY22, a fall of 52.9%.
• Current assets fell 2% and stood at Rs 43 billion, while fixed assets rose 14% and stood at Rs 54 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 97 billion as against Rs 91 billion during FY22, thereby witnessing a growth of 6%.

MANKIND PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	61,552	74,352	20.8
Current Liabilities	Rs m	26,235	18,631	-29.0
Long-term Debt	Rs m	492	231	-52.9
Total Liabilities	Rs m	91,085	96,857	6.3
Current assets	Rs m	44,038	43,246	-1.8
Fixed Assets	Rs m	47,016	53,578	14.0
Total Assets	Rs m	91,085	96,857	6.3

MANKIND PHARMA Cash Flow Statement Analysis

• MANKIND PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 18 billion, an improvement of 97.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 218 million from the Rs 2 billion net cash flows seen during FY22.

MANKIND PHARMA 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	9,198	18,133	97.1%
Cash Flow from Investing Activities	Rs m	-13,691	-10,541	-
Cash Flow from Financing Activities	Rs m	6,046	-7,397	-
Net Cash Flow	Rs m	1,557	218	-86.0%

Current Valuations for MANKIND PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.7, an decline from the EPS of Rs 36.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,804.4, stands at 55.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.7 times, while the price to sales ratio stands at 8.3 times.
• The company's price to cash flow (P/CF) ratio stood at 44.2 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	194.3	218.4
TTM Earnings per share	Rs	36.3	32.7
Diluted earnings per share	Rs	36.3	32.7
Price to Cash Flow	x	0.0	44.2
TTM P/E ratio	x	0.0	55.2
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	722,822
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MANKIND PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.7x 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 37.5x during FY23, from 34.0x 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 17.6% during FY23, from 23.6% 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 declined and down at 23.0% during FY23, from 32.8% 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 14.0% during FY23, from 16.6% 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	1.7	2.3
Debtors’ Days	Days	182	240
Interest coverage	x	34.0	37.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.6	14.0
Return on equity	%	23.6	17.6
Return on capital employed	%	32.8	23.0

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

MANKIND PHARMA Share Price Performance

Over the last one year, MANKIND PHARMA share price has moved up from Rs 0.0 to Rs 1,804.4, registering a gain of Rs 1,804.4 or around 0.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,508.8 (up 0.3%). Over the last one year it has moved up from 23,198.0 to 28,508.8, a gain of 5,311 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 MANKIND PHARMA and quarterly results for MANKIND PHARMA)