RPG LIFE SCIENCES 2022-23 Annual Report Analysis

Mon, 17 Jul

RPG LIFE SCIENCES 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.

RPG LIFE SCIENCES Income Statement Analysis

• Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.2% in FY23 as against 19.8% in FY22.
• Depreciation charges decreased by 1.1% and finance costs decreased by 18.4% YoY, respectively.
• Other income grew by 55.8% YoY.
• Net profit for the year grew by 31.4% YoY.
• Net profit margins during the year grew from 11.7% in FY22 to 13.2% in FY23.

RPG LIFE SCIENCES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,402	5,128	16.5%
Other income	Rs m	31	48	55.8%
Total Revenues	Rs m	4,432	5,176	16.8%
Gross profit	Rs m	872	1,035	18.8%
Depreciation	Rs m	157	155	-1.1%
Interest	Rs m	14	12	-18.4%
Profit before tax	Rs m	732	917	25.3%
Tax	Rs m	217	240	10.8%
Profit after tax	Rs m	515	676	31.4%
Gross profit margin	%	19.8	20.2
Effective tax rate	%	29.6	26.2
Net profit margin	%	11.7	13.2

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RPG LIFE SCIENCES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 801 million in FY22, thereby witnessing an increase of 28.3%.
• Current assets rose 28% and stood at Rs 3 billion, while fixed assets rose 13% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 22%.

RPG LIFE SCIENCES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,558	3,076	20.3
Current Liabilities	Rs m	801	1,028	28.3
Long-term Debt	Rs m	3	0	-100.0
Total Liabilities	Rs m	3,446	4,194	21.7
Current assets	Rs m	2,069	2,641	27.6
Fixed Assets	Rs m	1,377	1,553	12.8
Total Assets	Rs m	3,446	4,194	21.7

RPG LIFE SCIENCES Cash Flow Statement Analysis

• RPG LIFE SCIENCES's cash flow from operating activities (CFO) during FY23 stood at Rs 908 million, an improvement of 40.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 205.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -171 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -321 million from the Rs 166 million net cash flows seen during FY22.

RPG LIFE SCIENCES 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	648	908	40.3%
Cash Flow from Investing Activities	Rs m	-347	-1,058	-
Cash Flow from Financing Activities	Rs m	-135	-171	-
Net Cash Flow	Rs m	166	-321	-

Current Valuations for RPG LIFE SCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.9, an improvement from the EPS of Rs 31.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 976.4, stands at 23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.6 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	266.1	310.0
TTM Earnings per share	Rs	31.1	40.9
Diluted earnings per share	Rs	31.1	40.9
Price to Cash Flow	x	13.8	14.6
TTM P/E ratio	x	18.0	23.9
Price / Book Value ratio	x	3.6	3.9
Market Cap	Rs m	9,317	12,109
Dividends per share (Unadj.)	Rs	9.6	12.0

Ratio Analysis for RPG LIFE SCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY23, from 2.6x 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 80.7x during FY23, from 52.9x 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 22.0% 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 30.2% during FY23, from 29.1% 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 16.4% during FY23, from 15.3% 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	2.6	2.6
Debtors’ Days	Days	274	266
Interest coverage	x	52.9	80.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.3	16.4
Return on equity	%	20.1	22.0
Return on capital employed	%	29.1	30.2

To see how RPG LIFE SCIENCES has performed over the last 5 years, please visit here.

RPG LIFE SCIENCES Share Price Performance

Over the last one year, RPG LIFE SCIENCES share price has moved up from Rs 562.6 to Rs 976.4, registering a gain of Rs 413.8 or around 73.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,443.1 (up 0.8%). Over the last one year it has moved up from 22,591.9 to 26,443.1, a gain of 3,851 points (up 17.0%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for RPG LIFE SCIENCES and quarterly results for RPG LIFE SCIENCES)