UNICHEM LAB 2022-23 Annual Report Analysis

Thu, 31 Aug

UNICHEM LAB 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.

UNICHEM LAB Income Statement Analysis

• Operating income during the year rose 5.8% 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 stood at 6.3% in FY23 as against 5.6% in FY22.
• Depreciation charges increased by 24.4% and finance costs increased by 183.6% YoY, respectively.
• Other income declined by 18.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 2.6% in FY22 to 15.1% in FY23.

UNICHEM LAB Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,698	13,430	5.8%
Other income	Rs m	475	385	-18.9%
Total Revenues	Rs m	13,173	13,815	4.9%
Gross profit	Rs m	717	-841	NA
Depreciation	Rs m	912	1,134	24.4%
Interest	Rs m	61	173	183.6%
Profit before tax	Rs m	220	-1,764	NA
Tax	Rs m	-111	259	NA
Profit after tax	Rs m	331	-2,022	NA
Gross profit margin	%	5.6	-6.3
Effective tax rate	%	-50.5	-14.7
Net profit margin	%	2.6	-15.1

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UNICHEM LAB Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 6 billion in FY22, thereby witnessing an increase of 15.8%.
• Long-term debt down at Rs 636 million as compared to Rs 890 million during FY22, a fall of 28.5%.
• Current assets fell 3% and stood at Rs 16 billion, while fixed assets fell 4% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 33 billion during FY22, thereby witnessing a fall of 4%.

UNICHEM LAB Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	26,077	24,233	-7.1
Current Liabilities	Rs m	5,521	6,396	15.8
Long-term Debt	Rs m	890	636	-28.5
Total Liabilities	Rs m	33,144	31,829	-4.0
Current assets	Rs m	16,449	15,885	-3.4
Fixed Assets	Rs m	16,660	15,911	-4.5
Total Assets	Rs m	33,144	31,829	-4.0

UNICHEM LAB Cash Flow Statement Analysis

• UNICHEM LAB's cash flow from operating activities (CFO) during FY23 stood at Rs -851 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion, an improvement of 98.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -813 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 746 million from the Rs 317 million net cash flows seen during FY22.

UNICHEM LAB 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	-2,596	-851	-
Cash Flow from Investing Activities	Rs m	1,024	2,028	98.1%
Cash Flow from Financing Activities	Rs m	1,912	-813	-
Net Cash Flow	Rs m	317	746	134.9%

Current Valuations for UNICHEM LAB

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -28.7, an decline from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 417.6, stands at -16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at -27.5 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	180.3	190.7
TTM Earnings per share	Rs	4.7	-28.7
Diluted earnings per share	Rs	4.7	-28.7
Price to Cash Flow	x	14.8	-27.5
TTM P/E ratio	x	53.7	-16.4
Price / Book Value ratio	x	0.8	1.0
Market Cap	Rs m	20,150	24,396
Dividends per share (Unadj.)	Rs	4.0	0.0

Ratio Analysis for UNICHEM LAB

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY23, from 3.0x 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 -9.2x during FY23, from 4.6x 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 -8.3% during FY23, from 1.3% 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 -6.4% during FY23, from 1.0% 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 -5.8% during FY23, from 1.2% 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	3.0	2.5
Debtors’ Days	Days	1,424	1,600
Interest coverage	x	4.6	-9.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.2	-5.8
Return on equity	%	1.3	-8.3
Return on capital employed	%	1.0	-6.4

To see how UNICHEM LAB has performed over the last 5 years, please visit here.

UNICHEM LAB Share Price Performance

Over the last one year, UNICHEM LAB share price has moved up from Rs 306.4 to Rs 417.6, registering a gain of Rs 111.3 or around 36.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,871.2 (up 0.2%). Over the last one year it has moved up from 23,013.8 to 27,871.2, a gain of 4,857 points (up 21.1%).

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

(To know more, check out historical annual results for UNICHEM LAB and quarterly results for UNICHEM LAB)