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NURECA 2022-23 Annual Report Analysis

Sat, 1 Jul

NURECA 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.

NURECA Income Statement Analysis

• Operating income during the year fell 56.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 13.5% in FY23 as against 21.7% in FY22.
• Depreciation charges increased by 61.1% and finance costs decreased by 39.3% YoY, respectively.
• Other income declined by 7.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 17.6% in FY22 to 7.4% in FY23.

NURECA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,555	1,113	-56.4%
Other income	Rs m	77	71	-7.7%
Total Revenues	Rs m	2,632	1,184	-55.0%
Gross profit	Rs m	555	-150	NA
Depreciation	Rs m	15	24	61.1%
Interest	Rs m	7	5	-39.3%
Profit before tax	Rs m	610	-107	NA
Tax	Rs m	160	-25	NA
Profit after tax	Rs m	450	-83	NA
Gross profit margin	%	21.7	-13.5
Effective tax rate	%	26.3	23.2
Net profit margin	%	17.6	-7.4

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NURECA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 89 million as compared to Rs 453 million in FY22, thereby witnessing an decrease of -80.3%.
• Current assets fell 22% and stood at Rs 2 billion, while fixed assets rose 35% and stood at Rs 173 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 3 billion during FY22, thereby witnessing a fall of 19%.

NURECA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,032	1,949	-4.1
Current Liabilities	Rs m	453	89	-80.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,521	2,039	-19.1
Current assets	Rs m	2,392	1,866	-22.0
Fixed Assets	Rs m	128	173	34.7
Total Assets	Rs m	2,521	2,039	-19.1

NURECA Cash Flow Statement Analysis

• NURECA's cash flow from operating activities (CFO) during FY23 stood at Rs 102 million, an improvement of 631.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -165 million, an improvement of 432.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -15 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -77 million from the Rs -90 million net cash flows seen during FY22.

NURECA 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	14	102	631.0%
Cash Flow from Investing Activities	Rs m	-31	-165	-
Cash Flow from Financing Activities	Rs m	-73	-15	-
Net Cash Flow	Rs m	-90	-77	-

Current Valuations for NURECA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.3, an decline from the EPS of Rs 45.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 367.1, stands at -44.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at -148.6 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	255.5	111.3
TTM Earnings per share	Rs	45.0	-8.3
Diluted earnings per share	Rs	45.0	-8.2
Price to Cash Flow	x	29.3	-148.6
TTM P/E ratio	x	30.3	-44.5
Price / Book Value ratio	x	7.1	4.5
Market Cap	Rs m	14,526	8,710
Dividends per share (Unadj.)	Rs	3.0	0.0

Ratio Analysis for NURECA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 20.9x during FY23, from 5.3x 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 -22.9x during FY23, from 83.3x 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 -4.2% during FY23, from 22.1% 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 -5.3% during FY23, from 30.4% 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 -3.8% during FY23, from 18.1% 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	5.3	20.9
Debtors’ Days	Days	4	14
Interest coverage	x	83.3	-22.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.1	-3.8
Return on equity	%	22.1	-4.2
Return on capital employed	%	30.4	-5.3

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

NURECA Share Price Performance

Over the last one year, NURECA share price has moved down from Rs 987.8 to Rs 367.1, registering a loss of Rs 620.7 or around 62.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,814.5 (up 0.7%). Over the last one year it has moved up from 21,739.5 to 25,814.5, a gain of 4,075 points (up 18.7%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

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