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SYNGENE INTERNATIONAL 2022-23 Annual Report Analysis

Sun, 9 Jul

SYNGENE INTERNATIONAL 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.

SYNGENE INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 22.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.2% in FY23 as against 27.3% in FY22.
• Depreciation charges increased by 18.3% and finance costs increased by 87.6% YoY, respectively.
• Other income declined by 33.0% YoY.
• Net profit for the year grew by 17.3% YoY.
• Net profit margins during the year declined from 15.2% in FY22 to 14.5% in FY23.

SYNGENE INTERNATIONAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	26,042	31,929	22.6%
Other income	Rs m	1,084	726	-33.0%
Total Revenues	Rs m	27,126	32,655	20.4%
Gross profit	Rs m	7,098	9,327	31.4%
Depreciation	Rs m	3,097	3,665	18.3%
Interest	Rs m	241	452	87.6%
Profit before tax	Rs m	4,844	5,936	22.5%
Tax	Rs m	886	1,292	45.8%
Profit after tax	Rs m	3,958	4,644	17.3%
Gross profit margin	%	27.3	29.2
Effective tax rate	%	18.3	21.8
Net profit margin	%	15.2	14.5

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SYNGENE INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 12 billion as compared to Rs 12 billion in FY22, thereby witnessing an decrease of -3.3%.
• Long-term debt down at Rs 5 billion as compared to Rs 5 billion during FY22, a fall of 8.0%.
• Current assets rose 10% and stood at Rs 24 billion, while fixed assets rose 1% and stood at Rs 33 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 58 billion as against Rs 55 billion during FY22, thereby witnessing a growth of 5%.

SYNGENE INTERNATIONAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	32,101	35,526	10.7
Current Liabilities	Rs m	12,289	11,882	-3.3
Long-term Debt	Rs m	5,315	4,890	-8.0
Total Liabilities	Rs m	54,982	57,614	4.8
Current assets	Rs m	22,059	24,253	9.9
Fixed Assets	Rs m	32,923	33,361	1.3
Total Assets	Rs m	54,982	57,614	4.8

SYNGENE INTERNATIONAL Cash Flow Statement Analysis

• SYNGENE INTERNATIONAL's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 41.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 7.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 billion from the Rs -615 million net cash flows seen during FY22.

SYNGENE INTERNATIONAL 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	5,806	8,235	41.8%
Cash Flow from Investing Activities	Rs m	-6,115	-6,564	-
Cash Flow from Financing Activities	Rs m	-313	-3,425	-
Net Cash Flow	Rs m	-615	-1,723	-

Current Valuations for SYNGENE INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an improvement from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 762.9, stands at 66.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 9.6 times.
• The company's price to cash flow (P/CF) ratio stood at 28.8 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	65.0	79.5
TTM Earnings per share	Rs	9.9	11.6
Diluted earnings per share	Rs	9.8	11.6
Price to Cash Flow	x	34.0	28.8
TTM P/E ratio	x	60.6	66.1
Price / Book Value ratio	x	7.5	6.7
Market Cap	Rs m	242,091	239,606
Dividends per share (Unadj.)	Rs	1.0	1.3

Ratio Analysis for SYNGENE INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.8x 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 14.1x during FY23, from 21.1x 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 13.1% during FY23, from 12.3% 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 15.8% during FY23, from 13.6% 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 8.8% during FY23, from 7.6% 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	1.8	2.0
Debtors’ Days	Days	71	61
Interest coverage	x	21.1	14.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.6	8.8
Return on equity	%	12.3	13.1
Return on capital employed	%	13.6	15.8

To see how SYNGENE INTERNATIONAL has performed over the last 5 years, please visit here.

SYNGENE INTERNATIONAL Share Price Performance

Over the last one year, SYNGENE INTERNATIONAL share price has moved up from Rs 573.0 to Rs 762.9, registering a gain of Rs 189.9 or around 33.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,944.1 (down 0.7%). Over the last one year it has moved up from 22,160.4 to 25,944.1, a gain of 3,784 points (up 17.1%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for SYNGENE INTERNATIONAL and quarterly results for SYNGENE INTERNATIONAL)