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IOL CHEMICALS & PHARM. 2022-23 Annual Report Analysis

Fri, 21 Jul

IOL CHEMICALS & PHARM. 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.

IOL CHEMICALS & PHARM. Income Statement Analysis

• Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY23 as against 11.2% in FY22.
• Depreciation charges increased by 6.7% and finance costs increased by 98.7% YoY, respectively.
• Other income declined by 20.1% YoY.
• Net profit for the year declined by 17.0% YoY.
• Net profit margins during the year declined from 7.7% in FY22 to 6.3% in FY23.

IOL CHEMICALS & PHARM. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	21,840	22,171	1.5%
Other income	Rs m	320	256	-20.1%
Total Revenues	Rs m	22,161	22,427	1.2%
Gross profit	Rs m	2,444	2,257	-7.6%
Depreciation	Rs m	433	462	6.7%
Interest	Rs m	83	165	98.7%
Profit before tax	Rs m	2,249	1,887	-16.1%
Tax	Rs m	572	495	-13.4%
Profit after tax	Rs m	1,677	1,391	-17.0%
Gross profit margin	%	11.2	10.2
Effective tax rate	%	25.4	26.2
Net profit margin	%	7.7	6.3

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IOL CHEMICALS & PHARM. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -12.6%.
• Current assets fell 15% and stood at Rs 10 billion, while fixed assets rose 25% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 2%.

IOL CHEMICALS & PHARM. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	13,923	15,077	8.3
Current Liabilities	Rs m	5,753	5,025	-12.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	20,242	20,684	2.2
Current assets	Rs m	11,427	9,667	-15.4
Fixed Assets	Rs m	8,815	11,017	25.0
Total Assets	Rs m	20,242	20,684	2.2

IOL CHEMICALS & PHARM. Cash Flow Statement Analysis

• IOL CHEMICALS & PHARM.'s cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 31.4% 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 -41 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -18 million from the Rs -291 million net cash flows seen during FY22.

IOL CHEMICALS & PHARM. 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	931	1,223	31.4%
Cash Flow from Investing Activities	Rs m	-1,205	-1,200	-
Cash Flow from Financing Activities	Rs m	-16	-41	-
Net Cash Flow	Rs m	-291	-18	-

Current Valuations for IOL CHEMICALS & PHARM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.7, an decline from the EPS of Rs 28.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 371.9, stands at 15.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.8 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	372.0	377.6
TTM Earnings per share	Rs	28.6	23.7
Diluted earnings per share	Rs	28.6	23.7
Price to Cash Flow	x	9.8	12.8
TTM P/E ratio	x	15.2	15.7
Price / Book Value ratio	x	2.2	1.6
Market Cap	Rs m	29,943	23,743
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for IOL CHEMICALS & PHARM.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 2.0x 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 12.5x during FY23, from 28.1x 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 declined and down at 9.2% during FY23, from 12.0% 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 13.6% during FY23, from 16.7% 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 7.5% during FY23, from 8.7% 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	2.0	1.9
Debtors’ Days	Days	8	8
Interest coverage	x	28.1	12.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	7.5
Return on equity	%	12.0	9.2
Return on capital employed	%	16.7	13.6

To see how IOL CHEMICALS & PHARM. has performed over the last 5 years, please visit here.

IOL CHEMICALS & PHARM. Share Price Performance

Over the last one year, IOL CHEMICALS & PHARM. share price has moved up from Rs 360.2 to Rs 371.9, registering a gain of Rs 11.7 or around 3.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,692.7 (down 0.2%). Over the last one year it has moved up from 22,705.9 to 26,692.7, a gain of 3,987 points (up 17.6%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for IOL CHEMICALS & PHARM. and quarterly results for IOL CHEMICALS & PHARM.)