TATVA CHINTAN PHARMA 2022-23 Annual Report Analysis

Thu, 31 Aug

TATVA CHINTAN PHARMA 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.

TATVA CHINTAN PHARMA Income Statement Analysis

• Operating income during the year fell 2.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 47.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY23 as against 25.0% in FY22.
• Depreciation charges increased by 16.8% and finance costs increased by 64.3% YoY, respectively.
• Other income declined by 36.3% YoY.
• Net profit for the year declined by 52.6% YoY.
• Net profit margins during the year declined from 22.1% in FY22 to 10.7% in FY23.

TATVA CHINTAN PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,336	4,236	-2.3%
Other income	Rs m	90	57	-36.3%
Total Revenues	Rs m	4,427	4,294	-3.0%
Gross profit	Rs m	1,085	572	-47.3%
Depreciation	Rs m	82	96	16.8%
Interest	Rs m	52	86	64.3%
Profit before tax	Rs m	1,041	448	-57.0%
Tax	Rs m	82	-7	NA
Profit after tax	Rs m	959	455	-52.6%
Gross profit margin	%	25.0	13.5
Effective tax rate	%	7.9	-1.6
Net profit margin	%	22.1	10.7

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TATVA CHINTAN PHARMA 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 37.9%.
• Long-term debt down at Rs 42 million as compared to Rs 131 million during FY22, a fall of 67.7%.
• Current assets fell 28% and stood at Rs 3 billion, while fixed assets rose 101% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 15%.

TATVA CHINTAN PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,731	5,148	8.8
Current Liabilities	Rs m	1,712	2,361	37.9
Long-term Debt	Rs m	131	42	-67.7
Total Liabilities	Rs m	6,493	7,439	14.6
Current assets	Rs m	4,356	3,136	-28.0
Fixed Assets	Rs m	2,137	4,304	101.4
Total Assets	Rs m	6,493	7,439	14.6

TATVA CHINTAN PHARMA Cash Flow Statement Analysis

• TATVA CHINTAN PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 278 million, an improvement of 37.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 378 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -357 million from the Rs 585 million net cash flows seen during FY22.

TATVA CHINTAN PHARMA 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	202	278	37.3%
Cash Flow from Investing Activities	Rs m	-1,967	-1,011	-
Cash Flow from Financing Activities	Rs m	2,350	378	-83.9%
Net Cash Flow	Rs m	585	-357	-

Current Valuations for TATVA CHINTAN PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.5, an decline from the EPS of Rs 43.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,758.6, stands at 86.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.6 times, while the price to sales ratio stands at 9.2 times.
• The company's price to cash flow (P/CF) ratio stood at 85.7 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	195.6	191.1
TTM Earnings per share	Rs	43.2	20.5
Diluted earnings per share	Rs	43.3	20.5
Price to Cash Flow	x	49.2	85.7
TTM P/E ratio	x	53.4	86.3
Price / Book Value ratio	x	11.7	9.2
Market Cap	Rs m	55,150	47,157
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for TATVA CHINTAN PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 2.5x 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 6.2x during FY23, from 20.9x 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 declined and down at 8.8% during FY23, from 20.3% 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 declined and down at 10.3% during FY23, from 22.5% 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 7.3% during FY23, from 15.6% 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	2.5	1.3
Debtors’ Days	Days	48	73
Interest coverage	x	20.9	6.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.6	7.3
Return on equity	%	20.3	8.8
Return on capital employed	%	22.5	10.3

To see how TATVA CHINTAN PHARMA has performed over the last 5 years, please visit here.

TATVA CHINTAN PHARMA Share Price Performance

Over the last one year, TATVA CHINTAN PHARMA share price has moved down from Rs 2,425.4 to Rs 1,758.6, registering a loss of Rs 666.8 or around 27.5%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for TATVA CHINTAN PHARMA and quarterly results for TATVA CHINTAN PHARMA)