REMEDIUM LIFECARE 2022-23 Annual Report Analysis

Mon, 3 Jul

REMEDIUM LIFECARE 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.

REMEDIUM LIFECARE Income Statement Analysis

• Operating income during the year rose 1.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 295.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.4% in FY23 as against 0.4% in FY22.
• Depreciation charges increased by 104.1% and finance costs increased by 97.8% YoY, respectively.
• Other income grew by 8170.0% YoY.
• Net profit for the year grew by 403.3% YoY.
• Net profit margins during the year grew from 0.2% in FY22 to 1.1% in FY23.

REMEDIUM LIFECARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,048	5,098	1.0%
Other income	Rs m	0	8	8,170.0%
Total Revenues	Rs m	5,048	5,107	1.2%
Gross profit	Rs m	18	72	295.0%
Depreciation	Rs m	1	2	104.1%
Interest	Rs m	2	4	97.8%
Profit before tax	Rs m	15	74	385.0%
Tax	Rs m	4	20	340.7%
Profit after tax	Rs m	11	54	403.3%
Gross profit margin	%	0.4	1.4
Effective tax rate	%	29.3	26.6
Net profit margin	%	0.2	1.1

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REMEDIUM LIFECARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 422.7%.
• Current assets rose 416% and stood at Rs 12 billion, while fixed assets fell 58% and stood at Rs 1 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 416%.

REMEDIUM LIFECARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	49	104	109.9
Current Liabilities	Rs m	2,188	11,439	422.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,238	11,542	415.8
Current assets	Rs m	2,236	11,541	416.2
Fixed Assets	Rs m	2	1	-58.1
Total Assets	Rs m	2,238	11,542	415.8

REMEDIUM LIFECARE Cash Flow Statement Analysis

• REMEDIUM LIFECARE's cash flow from operating activities (CFO) during FY23 stood at Rs 205 million, an improvement of 81.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 204 million from the Rs 6 million net cash flows seen during FY22.

REMEDIUM LIFECARE 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	113	205	81.7%
Cash Flow from Investing Activities	Rs m	-1	0	-
Cash Flow from Financing Activities	Rs m	-106	0	-
Net Cash Flow	Rs m	6	204	3,167.2%

Current Valuations for REMEDIUM LIFECARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.1, an improvement from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,253.1, stands at 282.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 147.7 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 28.1 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	1,402.2	1,416.2
TTM Earnings per share	Rs	3.0	15.1
Diluted earnings per share	Rs	3.0	15.1
Price to Cash Flow	x	43.3	28.1
TTM P/E ratio	x	46.3	282.2
Price / Book Value ratio	x	7.0	15.1
Market Cap	Rs m	346	1,570
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for REMEDIUM LIFECARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated 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 17.5x during FY23, from 7.7x 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 52.4% during FY23, from 21.8% 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 75.7% during FY23, from 35.5% 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 0.5% during FY23, from 0.6% 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	1.0	1.0
Debtors’ Days	Days	463	1,234
Interest coverage	x	7.7	17.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.6	0.5
Return on equity	%	21.8	52.4
Return on capital employed	%	35.5	75.7

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

REMEDIUM LIFECARE Share Price Performance

Over the last one year, REMEDIUM LIFECARE share price has moved up from Rs 138.0 to Rs 4,253.1, registering a gain of Rs 4,115.1 or around 2981.9%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

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