POLY MEDICURE 2022-23 Annual Report Analysis

Thu, 21 Sep

POLY MEDICURE 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.

POLY MEDICURE Income Statement Analysis

• Operating income during the year rose 20.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.2% in FY23 as against 23.6% in FY22.
• Depreciation charges increased by 6.0% and finance costs increased by 76.1% YoY, respectively.
• Other income declined by 4.5% YoY.
• Net profit for the year grew by 22.4% YoY.
• Net profit margins during the year grew from 15.9% in FY22 to 16.1% in FY23.

POLY MEDICURE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,231	11,152	20.8%
Other income	Rs m	379	362	-4.5%
Total Revenues	Rs m	9,610	11,514	19.8%
Gross profit	Rs m	2,175	2,693	23.9%
Depreciation	Rs m	540	572	6.0%
Interest	Rs m	62	109	76.1%
Profit before tax	Rs m	1,952	2,375	21.6%
Tax	Rs m	487	582	19.4%
Profit after tax	Rs m	1,465	1,793	22.4%
Gross profit margin	%	23.6	24.2
Effective tax rate	%	25.0	24.5
Net profit margin	%	15.9	16.1

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POLY MEDICURE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 54.9%.
• Long-term debt down at Rs 175 million as compared to Rs 381 million during FY22, a fall of 54.1%.
• Current assets rose 10% and stood at Rs 9 billion, while fixed assets rose 30% 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 19%.

POLY MEDICURE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	10,860	12,393	14.1
Current Liabilities	Rs m	2,267	3,512	54.9
Long-term Debt	Rs m	381	175	-54.1
Total Liabilities	Rs m	13,768	16,351	18.8
Current assets	Rs m	7,834	8,649	10.4
Fixed Assets	Rs m	5,934	7,702	29.8
Total Assets	Rs m	13,768	16,351	18.8

POLY MEDICURE Cash Flow Statement Analysis

• POLY MEDICURE's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 54.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 109.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -125 million, an improvement of 65% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -7 million from the Rs 28 million net cash flows seen during FY22.

POLY MEDICURE 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	1,235	1,908	54.6%
Cash Flow from Investing Activities	Rs m	-853	-1,790	-
Cash Flow from Financing Activities	Rs m	-353	-125	-
Net Cash Flow	Rs m	28	-7	-

Current Valuations for POLY MEDICURE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.7, an improvement from the EPS of Rs 15.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,415.0, stands at 63.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.0 times, while the price to sales ratio stands at 12.2 times.
• The company's price to cash flow (P/CF) ratio stood at 34.4 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	96.3	116.2
TTM Earnings per share	Rs	15.3	18.7
Diluted earnings per share	Rs	15.3	18.7
Price to Cash Flow	x	45.4	34.4
TTM P/E ratio	x	63.2	63.8
Price / Book Value ratio	x	8.2	6.6
Market Cap	Rs m	88,782	81,394
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for POLY MEDICURE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY23, from 3.5x 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 deteriorated and stood at 22.9x during FY23, from 32.7x 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 14.5% during FY23, from 13.5% 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 19.8% during FY23, from 17.9% 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 11.6% during FY23, from 11.1% 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	3.5	2.5
Debtors’ Days	Days	817	771
Interest coverage	x	32.7	22.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.1	11.6
Return on equity	%	13.5	14.5
Return on capital employed	%	17.9	19.8

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

POLY MEDICURE Share Price Performance

Over the last one year, POLY MEDICURE share price has moved up from Rs 880.6 to Rs 1,415.0, registering a gain of Rs 534.5 or around 60.7%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

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