Markets will remain closed on May 01, 2024 on account of Maharashtra Day.

SOLARA ACTIVE PHARMA SCIENCES 2022-23 Annual Report Analysis

Fri, 1 Sep

SOLARA ACTIVE PHARMA 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.

SOLARA ACTIVE PHARMA SCIENCES Income Statement Analysis

• Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 75.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY23 as against 6.0% in FY22.
• Depreciation charges decreased by 1.0% and finance costs increased by 19.6% YoY, respectively.
• Other income grew by 12.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.6% in FY22 to 1.5% in FY23.

SOLARA ACTIVE PHARMA SCIENCES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,684	14,438	13.8%
Other income	Rs m	200	226	12.6%
Total Revenues	Rs m	12,884	14,664	13.8%
Gross profit	Rs m	765	1,339	75.1%
Depreciation	Rs m	1,123	1,112	-1.0%
Interest	Rs m	753	901	19.6%
Profit before tax	Rs m	-911	-448	NA
Tax	Rs m	-328	-226	NA
Profit after tax	Rs m	-583	-223	NA
Gross profit margin	%	6.0	9.3
Effective tax rate	%	36.0	50.4
Net profit margin	%	-4.6	-1.5

Revealed: A Potential Huge Investing Opportunity for Investors

SOLARA ACTIVE PHARMA SCIENCES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 3.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY22, a fall of 16.9%.
• Current assets fell 4% and stood at Rs 12 billion, while fixed assets fell 1% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 28 billion as against Rs 29 billion during FY22, thereby witnessing a fall of 2%.

SOLARA ACTIVE PHARMA SCIENCES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,239	14,992	-1.6
Current Liabilities	Rs m	10,634	11,011	3.5
Long-term Debt	Rs m	2,830	2,351	-16.9
Total Liabilities	Rs m	28,898	28,207	-2.4
Current assets	Rs m	12,393	11,875	-4.2
Fixed Assets	Rs m	16,505	16,332	-1.1
Total Assets	Rs m	28,898	28,207	-2.4

SOLARA ACTIVE PHARMA SCIENCES Cash Flow Statement Analysis

• SOLARA ACTIVE PHARMA SCIENCES's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -811 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -377 million from the Rs -2 billion net cash flows seen during FY22.

SOLARA ACTIVE PHARMA 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	-2,420	1,563	-
Cash Flow from Investing Activities	Rs m	-2,429	-811	-
Cash Flow from Financing Activities	Rs m	3,336	-1,128	-
Net Cash Flow	Rs m	-1,513	-377	-

Current Valuations for SOLARA ACTIVE PHARMA SCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.2, an improvement from the EPS of Rs -16.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 360.8, stands at -52.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 23.5 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	353.0	401.8
TTM Earnings per share	Rs	-16.2	-6.2
Diluted earnings per share	Rs	-16.2	-6.2
Price to Cash Flow	x	44.3	23.5
TTM P/E ratio	x	-41.1	-52.2
Price / Book Value ratio	x	2.9	1.4
Market Cap	Rs m	44,278	20,875
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SOLARA ACTIVE PHARMA SCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.2x 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 0.5x during FY23, from -0.2x 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 -1.5% during FY23, from -3.8% 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 2.6% during FY23, from -0.9% 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 2.4% 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	1.2	1.1
Debtors’ Days	Days	14	14
Interest coverage	x	-0.2	0.5
Debt to equity ratio	x	0.2	0.2
Return on assets	%	0.6	2.4
Return on equity	%	-3.8	-1.5
Return on capital employed	%	-0.9	2.6

To see how SOLARA ACTIVE PHARMA SCIENCES has performed over the last 5 years, please visit here.

SOLARA ACTIVE PHARMA SCIENCES Share Price Performance

Over the last one year, SOLARA ACTIVE PHARMA SCIENCES share price has moved down from Rs 443.4 to Rs 360.8, registering a loss of Rs 82.6 or around 18.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,894.8 (up 0.1%). Over the last one year it has moved up from 22,813.4 to 27,894.8, a gain of 5,081 points (up 22.3%).

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for SOLARA ACTIVE PHARMA SCIENCES and quarterly results for SOLARA ACTIVE PHARMA SCIENCES)