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SUN PHARMA ADV. RES. 2022-23 Annual Report Analysis

Mon, 17 Jul

SUN PHARMA ADV. RES. 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.

SUN PHARMA ADV. RES. Income Statement Analysis

• Operating income during the year rose 74.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 89.6% in FY23 as against 136.1% in FY22.
• Depreciation charges increased by 15.8% and finance costs decreased by 42.7% YoY, respectively.
• Other income grew by 58.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year grew from 148.2% in FY22 to 93.2% in FY23.

SUN PHARMA ADV. RES. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,372	2,388	74.0%
Other income	Rs m	68	109	58.9%
Total Revenues	Rs m	1,441	2,497	73.3%
Gross profit	Rs m	-1,867	-2,141	NA
Depreciation	Rs m	102	118	15.8%
Interest	Rs m	133	76	-42.7%
Profit before tax	Rs m	-2,034	-2,226	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-2,034	-2,226	NA
Gross profit margin	%	-136.1	-89.6
Effective tax rate	%	0.0	0.0
Net profit margin	%	-148.2	-93.2

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SUN PHARMA ADV. RES. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 4.4%.
• Current assets rose 539% and stood at Rs 5 billion, while fixed assets rose 80% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 196%.

SUN PHARMA ADV. RES. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-2,030	5,128	NA
Current Liabilities	Rs m	1,714	1,789	4.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,801	8,301	196.4
Current assets	Rs m	712	4,550	539.4
Fixed Assets	Rs m	2,089	3,752	79.6
Total Assets	Rs m	2,801	8,301	196.4

SUN PHARMA ADV. RES. Cash Flow Statement Analysis

• SUN PHARMA ADV. RES.'s cash flow from operating activities (CFO) during FY23 stood at Rs -691 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 1,779.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 6 billion, an improvement of 169% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -6 million from the Rs -81 million net cash flows seen during FY22.

SUN PHARMA ADV. RES. 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	-2,082	-691	-
Cash Flow from Investing Activities	Rs m	-292	-5,483	-
Cash Flow from Financing Activities	Rs m	2,293	6,168	168.9%
Net Cash Flow	Rs m	-81	-6	-

Current Valuations for SUN PHARMA ADV. RES.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.9, an improvement from the EPS of Rs -7.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 223.0, stands at -32.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.1 times, while the price to sales ratio stands at 30.3 times.
• The company's price to cash flow (P/CF) ratio stood at -35.9 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	5.0	7.4
TTM Earnings per share	Rs	-7.5	-6.9
Diluted earnings per share	Rs	-6.3	-6.9
Price to Cash Flow	x	-49.9	-35.9
TTM P/E ratio	x	-47.4	-32.5
Price / Book Value ratio	x	-32.9	14.7
Market Cap	Rs m	66,767	75,630
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUN PHARMA ADV. RES.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 0.4x 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 -28.2x during FY23, from -14.3x 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 declined and down at -43.4% during FY23, from 100.2% 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 declined and down at -41.9% during FY23, from 93.6% 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 -25.9% during FY23, from -67.9% 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	0.4	2.5
Debtors’ Days	Days	738	500
Interest coverage	x	-14.3	-28.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-67.9	-25.9
Return on equity	%	100.2	-43.4
Return on capital employed	%	93.6	-41.9

To see how SUN PHARMA ADV. RES. has performed over the last 5 years, please visit here.

SUN PHARMA ADV. RES. Share Price Performance

Over the last one year, SUN PHARMA ADV. RES. share price has moved up from Rs 214.4 to Rs 223.0, registering a gain of Rs 8.6 or around 4.0%.

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

(To know more, check out historical annual results for SUN PHARMA ADV. RES. and quarterly results for SUN PHARMA ADV. RES.)