NEULAND LABS 2022-23 Annual Report Analysis

Wed, 5 Jul

NEULAND 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.

NEULAND LABS Income Statement Analysis

• Operating income during the year rose 25.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 90.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.8% in FY23 as against 15.0% in FY22.
• Depreciation charges increased by 7.6% and finance costs decreased by 3.2% YoY, respectively.
• Other income grew by 369.3% YoY.
• Net profit for the year grew by 156.2% YoY.
• Net profit margins during the year grew from 6.7% in FY22 to 13.7% in FY23.

NEULAND LABS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,511	11,912	25.2%
Other income	Rs m	21	97	369.3%
Total Revenues	Rs m	9,532	12,009	26.0%
Gross profit	Rs m	1,426	2,718	90.6%
Depreciation	Rs m	490	528	7.6%
Interest	Rs m	135	131	-3.2%
Profit before tax	Rs m	822	2,157	162.6%
Tax	Rs m	183	522	184.8%
Profit after tax	Rs m	638	1,635	156.2%
Gross profit margin	%	15.0	22.8
Effective tax rate	%	22.3	24.2
Net profit margin	%	6.7	13.7

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NEULAND LABS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 20.9%.
• Long-term debt down at Rs 742 million as compared to Rs 1 billion during FY22, a fall of 28.8%.
• Current assets rose 31% and stood at Rs 8 billion, while fixed assets rose 2% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 14%.

NEULAND LABS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,405	9,941	18.3
Current Liabilities	Rs m	3,632	4,390	20.9
Long-term Debt	Rs m	1,042	742	-28.8
Total Liabilities	Rs m	13,835	15,798	14.2
Current assets	Rs m	5,808	7,609	31.0
Fixed Assets	Rs m	8,027	8,189	2.0
Total Assets	Rs m	13,835	15,798	14.2

NEULAND LABS Cash Flow Statement Analysis

• NEULAND LABS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 292.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -615 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 403 million from the Rs 27 million net cash flows seen during FY22.

NEULAND 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	604	2,372	292.8%
Cash Flow from Investing Activities	Rs m	-955	-615	-
Cash Flow from Financing Activities	Rs m	377	-1,358	-
Net Cash Flow	Rs m	27	403	1,418.3%

Current Valuations for NEULAND LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 127.4, an improvement from the EPS of Rs 49.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,048.0, stands at 23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 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	741.3	928.4
TTM Earnings per share	Rs	49.7	127.4
Diluted earnings per share	Rs	49.7	127.5
Price to Cash Flow	x	11.7	8.8
TTM P/E ratio	x	20.6	23.9
Price / Book Value ratio	x	2.9	1.9
Market Cap	Rs m	24,633	19,052
Dividends per share (Unadj.)	Rs	5.0	10.0

Ratio Analysis for NEULAND LABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 improved and stood at 17.5x during FY23, from 7.1x 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 16.4% during FY23, from 7.6% 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 improved and stood at 21.4% during FY23, from 10.1% 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 11.2% during FY23, from 5.6% 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	1.6	1.7
Debtors’ Days	Days	899	1,109
Interest coverage	x	7.1	17.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.6	11.2
Return on equity	%	7.6	16.4
Return on capital employed	%	10.1	21.4

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

NEULAND LABS Share Price Performance

Over the last one year, NEULAND LABS share price has moved up from Rs 1,235.5 to Rs 3,048.0, registering a gain of Rs 1,812.6 or around 146.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,764.3 (up 0.2%). Over the last one year it has moved up from 21,785.5 to 25,764.3, a gain of 3,979 points (up 18.3%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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