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MOREPEN LABS 2022-23 Annual Report Analysis

Wed, 13 Sep

MOREPEN 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.

MOREPEN LABS Income Statement Analysis

• Operating income during the year fell 8.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 41.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY23 as against 8.8% in FY22.
• Depreciation charges increased by 1.0% and finance costs decreased by 18.3% YoY, respectively.
• Other income declined by 69.5% YoY.
• Net profit for the year declined by 62.0% YoY.
• Net profit margins during the year declined from 6.6% in FY22 to 2.7% in FY23.

MOREPEN LABS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,468	14,175	-8.4%
Other income	Rs m	201	61	-69.5%
Total Revenues	Rs m	15,669	14,237	-9.1%
Gross profit	Rs m	1,367	795	-41.8%
Depreciation	Rs m	276	279	1.0%
Interest	Rs m	24	20	-18.3%
Profit before tax	Rs m	1,267	558	-56.0%
Tax	Rs m	250	171	-31.7%
Profit after tax	Rs m	1,017	387	-62.0%
Gross profit margin	%	8.8	5.6
Effective tax rate	%	19.7	30.6
Net profit margin	%	6.6	2.7

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MOREPEN LABS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 5 billion in FY22, thereby witnessing an decrease of -29.6%.
• Long-term debt down at Rs 9 million as compared to Rs 13 million during FY22, a fall of 29.3%.
• Current assets rose 3% and stood at Rs 8 billion, while fixed assets rose 6% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 4%.

MOREPEN LABS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,523	7,529	36.3
Current Liabilities	Rs m	4,565	3,212	-29.6
Long-term Debt	Rs m	13	9	-29.3
Total Liabilities	Rs m	10,701	11,105	3.8
Current assets	Rs m	7,343	7,562	3.0
Fixed Assets	Rs m	3,358	3,543	5.5
Total Assets	Rs m	10,701	11,105	3.8

MOREPEN LABS Cash Flow Statement Analysis

• MOREPEN LABS's cash flow from operating activities (CFO) during FY23 stood at Rs -912 million, an improvement of 51.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -465 million, an improvement of 46.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 116% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 59 million from the Rs -256 million net cash flows seen during FY22.

MOREPEN 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	-602	-912	-
Cash Flow from Investing Activities	Rs m	-317	-465	-
Cash Flow from Financing Activities	Rs m	663	1,435	116.4%
Net Cash Flow	Rs m	-256	59	-

Current Valuations for MOREPEN LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an decline from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 37.2, stands at 39.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 30.1 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	32.4	27.7
TTM Earnings per share	Rs	2.1	0.8
Diluted earnings per share	Rs	2.0	0.8
Price to Cash Flow	x	14.5	30.1
TTM P/E ratio	x	18.4	39.9
Price / Book Value ratio	x	4.6	2.7
Market Cap	Rs m	25,540	20,051
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MOREPEN LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 1.6x 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 29.1x during FY23, from 53.2x 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 5.1% during FY23, from 18.4% 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 7.7% during FY23, from 23.3% 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 3.7% during FY23, from 9.7% 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	1.6	2.4
Debtors’ Days	Days	591	678
Interest coverage	x	53.2	29.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	3.7
Return on equity	%	18.4	5.1
Return on capital employed	%	23.3	7.7

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

MOREPEN LABS Share Price Performance

Over the last one year, MOREPEN LABS share price has moved up from Rs 34.2 to Rs 37.2, registering a gain of Rs 3.0 or around 8.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,354.3 (up 0.2%). Over the last one year it has moved up from 23,293.4 to 28,354.3, a gain of 5,061 points (up 21.7%).

Overall, the S&P BSE SENSEX is up 12.0% over the year.

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