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SEQUENT SCIENTIFIC 2022-23 Annual Report Analysis

Tue, 20 Feb

SEQUENT SCIENTIFIC 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.

SEQUENT SCIENTIFIC Income Statement Analysis

• Operating income during the year rose 0.6% 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 3.7% in FY23 as against 7.7% in FY22.
• Depreciation charges increased by 8.1% and finance costs increased by 125.2% YoY, respectively.
• Other income declined by 41.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3.2% in FY22 to 8.6% in FY23.

SEQUENT SCIENTIFIC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,128	14,209	0.6%
Other income	Rs m	109	64	-41.2%
Total Revenues	Rs m	14,237	14,273	0.3%
Gross profit	Rs m	1,094	-528	NA
Depreciation	Rs m	515	557	8.1%
Interest	Rs m	158	355	125.2%
Profit before tax	Rs m	529	-1,377	NA
Tax	Rs m	82	-157	NA
Profit after tax	Rs m	448	-1,220	NA
Gross profit margin	%	7.7	-3.7
Effective tax rate	%	15.4	11.4
Net profit margin	%	3.2	-8.6

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SEQUENT SCIENTIFIC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 4.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY22, a growth of 49.3%.
• Current assets rose 1% and stood at Rs 8 billion, while fixed assets rose 10% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 5%.

SEQUENT SCIENTIFIC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,450	6,425	-0.4
Current Liabilities	Rs m	5,374	5,588	4.0
Long-term Debt	Rs m	1,225	1,828	49.3
Total Liabilities	Rs m	14,866	15,661	5.3
Current assets	Rs m	8,084	8,125	0.5
Fixed Assets	Rs m	6,782	7,435	9.6
Total Assets	Rs m	14,866	15,661	5.3

SEQUENT SCIENTIFIC Cash Flow Statement Analysis

• SEQUENT SCIENTIFIC's cash flow from operating activities (CFO) during FY23 stood at Rs 168 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -650 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 322 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -159 million from the Rs 38 million net cash flows seen during FY22.

SEQUENT SCIENTIFIC 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	306	168	-45.1%
Cash Flow from Investing Activities	Rs m	-956	-650	-
Cash Flow from Financing Activities	Rs m	673	322	-52.1%
Net Cash Flow	Rs m	38	-159	-

Current Valuations for SEQUENT SCIENTIFIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.9, an decline from the EPS of Rs 1.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 72.6, stands at -14.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at -41.0 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	56.9	57.0
TTM Earnings per share	Rs	1.8	-4.9
Diluted earnings per share	Rs	1.8	-4.9
Price to Cash Flow	x	34.7	-41.0
TTM P/E ratio	x	74.3	-14.8
Price / Book Value ratio	x	8.8	4.2
Market Cap	Rs m	56,802	27,151
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SEQUENT SCIENTIFIC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.5x 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 -2.9x during FY23, from 4.4x 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 -19.0% during FY23, from 6.9% 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 -12.4% during FY23, from 9.0% 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 -5.5% during FY23, from 4.1% 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	1.5	1.5
Debtors’ Days	Days	85	88
Interest coverage	x	4.4	-2.9
Debt to equity ratio	x	0.2	0.3
Return on assets	%	4.1	-5.5
Return on equity	%	6.9	-19.0
Return on capital employed	%	9.0	-12.4

To see how SEQUENT SCIENTIFIC has performed over the last 5 years, please visit here.

SEQUENT SCIENTIFIC Share Price Performance

Over the last one year, SEQUENT SCIENTIFIC share price has moved down from Rs 133.8 to Rs 72.6, registering a loss of Rs 61.2 or around 45.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,883.5 (up 0.4%). Over the last one year it has moved down from 24,303.8 to 21,883.5, a loss of 2,420 points (down 10.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for SEQUENT SCIENTIFIC and quarterly results for SEQUENT SCIENTIFIC)