VENUS REMEDIES 2022-23 Annual Report Analysis

Thu, 21 Sep

VENUS REMEDIES 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.

VENUS REMEDIES Income Statement Analysis

• Operating income during the year fell 7.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.8% in FY23 as against 10.3% in FY22.
• Depreciation charges decreased by 3.7% and finance costs decreased by 38.9% YoY, respectively.
• Other income grew by 24.2% YoY.
• Net profit for the year declined by 34.8% YoY.
• Net profit margins during the year declined from 6.8% in FY22 to 4.8% in FY23.

VENUS REMEDIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,002	5,555	-7.4%
Other income	Rs m	83	103	24.2%
Total Revenues	Rs m	6,085	5,658	-7.0%
Gross profit	Rs m	621	602	-3.1%
Depreciation	Rs m	335	323	-3.7%
Interest	Rs m	5	3	-38.9%
Profit before tax	Rs m	364	379	4.2%
Tax	Rs m	-43	114	NA
Profit after tax	Rs m	407	266	-34.8%
Gross profit margin	%	10.3	10.8
Effective tax rate	%	-11.9	30.0
Net profit margin	%	6.8	4.8

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VENUS REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 826 million as compared to Rs 927 million in FY22, thereby witnessing an decrease of -11.0%.
• Long-term debt down at Rs 387 million as compared to Rs 387 million during FY22, a fall of 0.0%.
• Current assets rose 16% and stood at Rs 3 billion, while fixed assets fell 8% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 4%.

VENUS REMEDIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,404	4,603	4.5
Current Liabilities	Rs m	927	826	-11.0
Long-term Debt	Rs m	387	387	0.0
Total Liabilities	Rs m	5,791	6,011	3.8
Current assets	Rs m	2,780	3,230	16.2
Fixed Assets	Rs m	3,011	2,781	-7.6
Total Assets	Rs m	5,791	6,011	3.8

VENUS REMEDIES Cash Flow Statement Analysis

• VENUS REMEDIES's cash flow from operating activities (CFO) during FY23 stood at Rs 366 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -508 million, an improvement of 203.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -220 million from the Rs 144 million net cash flows seen during FY22.

VENUS REMEDIES 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	411	366	-10.9%
Cash Flow from Investing Activities	Rs m	-167	-508	-
Cash Flow from Financing Activities	Rs m	-95	-6	-
Net Cash Flow	Rs m	144	-220	-

Current Valuations for VENUS REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.9, an decline from the EPS of Rs 30.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 237.0, stands at 15.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 5.9 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	448.9	415.5
TTM Earnings per share	Rs	30.5	19.9
Diluted earnings per share	Rs	30.5	19.9
Price to Cash Flow	x	4.8	5.9
TTM P/E ratio	x	8.8	15.2
Price / Book Value ratio	x	1.4	0.8
Market Cap	Rs m	6,011	3,501
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VENUS REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x 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 improved and stood at 130.0x during FY23, from 76.7x 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 5.8% during FY23, from 9.2% 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 7.7% during FY23, from 7.7% 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 4.5% during FY23, from 7.1% 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	3.0	3.9
Debtors’ Days	Days	235	504
Interest coverage	x	76.7	130.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.1	4.5
Return on equity	%	9.2	5.8
Return on capital employed	%	7.7	7.7

To see how VENUS REMEDIES has performed over the last 5 years, please visit here.

VENUS REMEDIES Share Price Performance

Over the last one year, VENUS REMEDIES share price has moved up from Rs 219.2 to Rs 237.0, registering a gain of Rs 17.8 or around 8.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,144.1 (down 0.7%). Over the last one year it has moved up from 23,092.9 to 28,144.1, a gain of 5,051 points (up 21.9%).

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for VENUS REMEDIES and quarterly results for VENUS REMEDIES)