MEDICO REMEDIES 2022-23 Annual Report Analysis

Mon, 2 Oct

MEDICO REMEDIES 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.

MEDICO REMEDIES Income Statement Analysis

• Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.8% in FY23 as against 6.1% in FY22.
• Depreciation charges increased by 22.7% and finance costs increased by 12.8% YoY, respectively.
• Other income grew by 101.3% YoY.
• Net profit for the year grew by 50.5% YoY.
• Net profit margins during the year grew from 4.0% in FY22 to 5.2% in FY23.

MEDICO REMEDIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,210	1,404	16.0%
Other income	Rs m	20	41	101.3%
Total Revenues	Rs m	1,231	1,445	17.5%
Gross profit	Rs m	73	95	29.3%
Depreciation	Rs m	22	27	22.7%
Interest	Rs m	7	7	12.8%
Profit before tax	Rs m	65	101	55.8%
Tax	Rs m	17	29	71.0%
Profit after tax	Rs m	48	72	50.5%
Gross profit margin	%	6.1	6.8
Effective tax rate	%	25.8	28.3
Net profit margin	%	4.0	5.2

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MEDICO REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 432 million as compared to Rs 396 million in FY22, thereby witnessing an increase of 9.1%.
• Long-term debt down at Rs 2 million as compared to Rs 9 million during FY22, a fall of 72.6%.
• Current assets rose 12% and stood at Rs 662 million, while fixed assets rose 17% and stood at Rs 229 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 891 million as against Rs 787 million during FY22, thereby witnessing a growth of 13%.

MEDICO REMEDIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	366	438	19.9
Current Liabilities	Rs m	396	432	9.1
Long-term Debt	Rs m	9	2	-72.6
Total Liabilities	Rs m	787	891	13.3
Current assets	Rs m	590	662	12.1
Fixed Assets	Rs m	196	229	16.6
Total Assets	Rs m	787	891	13.3

MEDICO REMEDIES Cash Flow Statement Analysis

• MEDICO REMEDIES 's cash flow from operating activities (CFO) during FY23 stood at Rs 82 million, an improvement of 39.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -66 million, an improvement of 275.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -18 million, an improvement of 69% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 million from the Rs -17 million net cash flows seen during FY22.

MEDICO REMEDIES 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	59	82	39.3%
Cash Flow from Investing Activities	Rs m	-18	-66	-
Cash Flow from Financing Activities	Rs m	-58	-18	-
Net Cash Flow	Rs m	-17	-3	-

Current Valuations for MEDICO REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an decline from the EPS of Rs 2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 70.8, stands at 71.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 42.9 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	72.9	16.9
TTM Earnings per share	Rs	2.9	0.9
Diluted earnings per share	Rs	0.6	0.9
Price to Cash Flow	x	19.8	42.9
TTM P/E ratio	x	29.0	71.6
Price / Book Value ratio	x	13.3	9.7
Market Cap	Rs m	4,859	4,272
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 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 14.5x during FY23, from 10.8x 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 16.5% during FY23, from 13.2% 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 improved and stood at 24.6% during FY23, from 19.1% 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 9.0% during FY23, from 7.0% 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	1.5
Debtors’ Days	Days	917	938
Interest coverage	x	10.8	14.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.0	9.0
Return on equity	%	13.2	16.5
Return on capital employed	%	19.1	24.6

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 27.7 to Rs 70.8, registering a gain of Rs 43.1 or around 155.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,497.5 (up 2.2%). Over the last one year it has moved up from 23,340.5 to 28,497.5, a gain of 5,157 points (up 22.1%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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