STRIDES PHARMA SCIENCE 2022-23 Annual Report Analysis

Sun, 6 Aug

STRIDES PHARMA SCIENCE 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.

STRIDES PHARMA SCIENCE Income Statement Analysis

• Operating income during the year rose 20.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.2% in FY23 as against 12.3% in FY22.
• Depreciation charges increased by 4.4% and finance costs increased by 47.8% YoY, respectively.
• Other income grew by 1.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 15.4% in FY22 to 6.3% in FY23.

STRIDES PHARMA SCIENCE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	30,703	36,884	20.1%
Other income	Rs m	1,334	1,352	1.4%
Total Revenues	Rs m	32,036	38,236	19.4%
Gross profit	Rs m	-3,762	830	NA
Depreciation	Rs m	2,330	2,433	4.4%
Interest	Rs m	1,767	2,611	47.8%
Profit before tax	Rs m	-6,525	-2,862	NA
Tax	Rs m	-1,783	-553	NA
Profit after tax	Rs m	-4,743	-2,309	NA
Gross profit margin	%	-12.3	2.2
Effective tax rate	%	27.3	19.3
Net profit margin	%	-15.4	-6.3

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STRIDES PHARMA SCIENCE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 30 billion as compared to Rs 34 billion in FY22, thereby witnessing an decrease of -12.4%.
• Long-term debt stood at Rs 11 billion as compared to Rs 8 billion during FY22, a growth of 36.4%.
• Current assets fell 7% and stood at Rs 31 billion, while fixed assets fell 8% and stood at Rs 31 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 64 billion as against Rs 68 billion during FY22, thereby witnessing a fall of 6%.

STRIDES PHARMA SCIENCE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	23,568	21,928	-7.0
Current Liabilities	Rs m	34,117	29,902	-12.4
Long-term Debt	Rs m	8,356	11,398	36.4
Total Liabilities	Rs m	67,607	63,734	-5.7
Current assets	Rs m	33,618	31,353	-6.7
Fixed Assets	Rs m	33,989	31,300	-7.9
Total Assets	Rs m	67,607	63,734	-5.7

STRIDES PHARMA SCIENCE Cash Flow Statement Analysis

• STRIDES PHARMA SCIENCE's cash flow from operating activities (CFO) during FY23 stood at Rs 444 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs 449 million net cash flows seen during FY22.

STRIDES PHARMA SCIENCE 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	-2,578	444	-
Cash Flow from Investing Activities	Rs m	-1,187	3,025	-
Cash Flow from Financing Activities	Rs m	4,213	-2,139	-
Net Cash Flow	Rs m	449	1,328	195.7%

Current Valuations for STRIDES PHARMA SCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -25.6, an improvement from the EPS of Rs -52.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 448.1, stands at 25.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 239.6 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	341.9	408.5
TTM Earnings per share	Rs	-52.8	-25.6
Diluted earnings per share	Rs	-52.5	-25.6
Price to Cash Flow	x	-13.0	239.6
TTM P/E ratio	x	-8.6	25.8
Price / Book Value ratio	x	2.4	1.4
Market Cap	Rs m	56,177	29,603
Dividends per share (Unadj.)	Rs	0.0	1.5

Ratio Analysis for STRIDES PHARMA SCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 1.0x 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 -0.1x during FY23, from -2.7x 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 -10.5% during FY23, from -20.1% 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 improved and stood at -0.8% during FY23, from -14.9% 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 0.5% during FY23, from -4.4% 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	1.0	1.0
Debtors’ Days	Days	144	129
Interest coverage	x	-2.7	-0.1
Debt to equity ratio	x	0.4	0.5
Return on assets	%	-4.4	0.5
Return on equity	%	-20.1	-10.5
Return on capital employed	%	-14.9	-0.8

To see how STRIDES PHARMA SCIENCE has performed over the last 5 years, please visit here.

STRIDES PHARMA SCIENCE Share Price Performance

Over the last one year, STRIDES PHARMA SCIENCE share price has moved up from Rs 345.2 to Rs 448.1, registering a gain of Rs 102.9 or around 29.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,852.0 (up 0.6%). Over the last one year it has moved up from 23,184.7 to 27,852.0, a gain of 4,667 points (up 20.1%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

(To know more, check out historical annual results for STRIDES PHARMA SCIENCE and quarterly results for STRIDES PHARMA SCIENCE)