MARKSANS PHARMA. 2022-23 Annual Report Analysis

Tue, 15 Aug

MARKSANS 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.

MARKSANS PHARMA. Income Statement Analysis

• Operating income during the year rose 24.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.3% in FY23 as against 17.4% in FY22.
• Depreciation charges increased by 15.8% and finance costs increased by 8.1% YoY, respectively.
• Other income grew by 41.7% YoY.
• Net profit for the year grew by 42.0% YoY.
• Net profit margins during the year grew from 12.5% in FY22 to 14.3% in FY23.

MARKSANS PHARMA. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,908	18,521	24.2%
Other income	Rs m	419	593	41.7%
Total Revenues	Rs m	15,327	19,115	24.7%
Gross profit	Rs m	2,589	3,393	31.1%
Depreciation	Rs m	448	519	15.8%
Interest	Rs m	84	91	8.1%
Profit before tax	Rs m	2,475	3,377	36.4%
Tax	Rs m	607	723	19.2%
Profit after tax	Rs m	1,868	2,653	42.0%
Gross profit margin	%	17.4	18.3
Effective tax rate	%	24.5	21.4
Net profit margin	%	12.5	14.3

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MARKSANS PHARMA. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -3.9%.
• Current assets rose 39% and stood at Rs 17 billion, while fixed assets rose 21% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 17 billion during FY22, thereby witnessing a growth of 34%.

MARKSANS PHARMA. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,092	17,452	57.3
Current Liabilities	Rs m	3,801	3,654	-3.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	16,601	22,242	34.0
Current assets	Rs m	12,251	16,997	38.7
Fixed Assets	Rs m	4,350	5,246	20.6
Total Assets	Rs m	16,601	22,242	34.0

MARKSANS PHARMA. Cash Flow Statement Analysis

• MARKSANS PHARMA.'s cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 139.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 207.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 149% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 944 million net cash flows seen during FY22.

MARKSANS 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	993	2,374	139.2%
Cash Flow from Investing Activities	Rs m	-844	-2,592	-
Cash Flow from Financing Activities	Rs m	795	1,978	148.8%
Net Cash Flow	Rs m	944	1,760	86.5%

Current Valuations for MARKSANS PHARMA.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.9, an improvement from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 113.9, stands at 18.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	36.4	40.9
TTM Earnings per share	Rs	4.6	5.9
Diluted earnings per share	Rs	4.1	5.9
Price to Cash Flow	x	8.9	8.1
TTM P/E ratio	x	11.0	18.7
Price / Book Value ratio	x	2.6	1.5
Market Cap	Rs m	28,836	25,631
Dividends per share (Unadj.)	Rs	0.3	0.5

Ratio Analysis for MARKSANS PHARMA.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.7x during FY23, from 3.2x 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 38.0x during FY23, from 30.3x 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 15.2% during FY23, from 16.8% 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 declined and down at 19.9% during FY23, from 23.1% 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 12.3% during FY23, from 11.8% 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	3.2	4.7
Debtors’ Days	Days	97	82
Interest coverage	x	30.3	38.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	12.3
Return on equity	%	16.8	15.2
Return on capital employed	%	23.1	19.9

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

MARKSANS PHARMA. Share Price Performance

Over the last one year, MARKSANS PHARMA. share price has moved up from Rs 49.8 to Rs 113.9, registering a gain of Rs 64.1 or around 128.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,819.2 (down 0.5%). Over the last one year it has moved up from 23,047.5 to 27,819.2, a gain of 4,772 points (up 20.7%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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