MEDICO REMEDIES 2021-22 Annual Report Analysis

Thu, 8 Sep

MEDICO REMEDIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

MEDICO REMEDIES Income Statement Analysis

• Operating income during the year fell 1.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.0% in FY22 as against 4.3% in FY21.
• Depreciation charges increased by 26.1% and finance costs decreased by 33.7% YoY, respectively.
• Other income grew by 97.1% YoY.
• Net profit for the year grew by 88.8% YoY.
• Net profit margins during the year grew from 2.1% in FY21 to 4.0% in FY22.

MEDICO REMEDIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,224	1,210	-1.1%
Other income	Rs m	10	20	97.1%
Total Revenues	Rs m	1,234	1,231	-0.3%
Gross profit	Rs m	52	72	37.6%
Depreciation	Rs m	17	21	26.1%
Interest	Rs m	9	6	-33.7%
Profit before tax	Rs m	37	66	77.0%
Tax	Rs m	11	17	49.5%
Profit after tax	Rs m	26	49	88.8%
Gross profit margin	%	4.3	6.0
Effective tax rate	%	30.0	25.3
Net profit margin	%	2.1	4.0

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MEDICO REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 379 million as compared to Rs 380 million in FY21, thereby witnessing an decrease of -0.2%.
• Long-term debt down at Rs 9 million as compared to Rs 50 million during FY21, a fall of 81.8%.
• Current assets rose 0% and stood at Rs 586 million, while fixed assets rose 3% and stood at Rs 176 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 762 million as against Rs 756 million during FY21, thereby witnessing a growth of 1%.

MEDICO REMEDIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	325	373	15.0
Current Liabilities	Rs m	380	379	-0.2
Long-term Debt	Rs m	50	9	-81.8
Total Liabilities	Rs m	756	762	0.8
Current assets	Rs m	585	586	0.1
Fixed Assets	Rs m	171	176	2.9
Total Assets	Rs m	756	762	0.8

MEDICO REMEDIES Cash Flow Statement Analysis

• MEDICO REMEDIES 's cash flow from operating activities (CFO) during FY22 stood at Rs 17 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -29 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 74 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 63 million from the Rs -100 million net cash flows seen during FY21.

MEDICO REMEDIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	-113	17	-
Cash Flow from Investing Activities	Rs m	-170	-29	-
Cash Flow from Financing Activities	Rs m	183	74	-59.5%
Net Cash Flow	Rs m	-100	63	-

Current Valuations for MEDICO REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 103.1, stands at 35.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 69.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	294.9	72.9
TTM Earnings per share	Rs	6.2	2.9
Diluted earnings per share	Rs	1.6	2.9
Price to Cash Flow	x	39.1	69.7
TTM P/E ratio	x	64.1	35.0
Price / Book Value ratio	x	1.1	13.0
Market Cap	Rs m	357	4,859
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MEDICO REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY22, from 1.5x during FY21. 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 11.7x during FY22, from 5.0x during FY21. 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 13.1% during FY22, from 8.0% during FY22. 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 18.7% during FY22, from 12.3% during FY21. 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 7.2% during FY22, from 4.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.5	1.5
Debtors’ Days	Days	818	944
Interest coverage	x	5.0	11.7
Debt to equity ratio	x	0.2	0.0
Return on assets	%	4.6	7.2
Return on equity	%	8.0	13.1
Return on capital employed	%	12.3	18.7

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

MEDICO REMEDIES Share Price Performance

Over the last one year, MEDICO REMEDIES share price has moved up from Rs 0.0 to Rs 103.1, registering a gain of Rs 103.1 or around 0.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 23,076.3 (up 0.1%). Over the last one year it has moved down from 26,535.4 to 23,076.3, a loss of 3,459 points (down 13.0%).

Overall, the S&P BSE SENSEX is up 2.4% over the year.

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

Read: Latest Annual Report Analysis of MEDICO REMEDIES