WINDLAS BIOTECH 2022-23 Annual Report Analysis

Tue, 22 Aug

WINDLAS BIOTECH 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.

WINDLAS BIOTECH Income Statement Analysis

• Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY23 as against 11.3% in FY22.
• Depreciation charges increased by 1.8% and finance costs decreased by 44.4% YoY, respectively.
• Other income grew by 48.6% YoY.
• Net profit for the year grew by 11.9% YoY.
• Net profit margins during the year grew from 8.2% in FY22 to 8.3% in FY23.

WINDLAS BIOTECH Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,659	5,131	10.1%
Other income	Rs m	67	100	48.6%
Total Revenues	Rs m	4,726	5,230	10.7%
Gross profit	Rs m	524	602	14.9%
Depreciation	Rs m	121	124	1.8%
Interest	Rs m	14	8	-44.4%
Profit before tax	Rs m	456	570	25.2%
Tax	Rs m	75	144	92.8%
Profit after tax	Rs m	381	426	11.9%
Gross profit margin	%	11.3	11.7
Effective tax rate	%	16.4	25.3
Net profit margin	%	8.2	8.3

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WINDLAS BIOTECH Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 940 million in FY22, thereby witnessing an increase of 29.0%.
• Long-term debt down at Rs 1 million as compared to Rs 4 million during FY22, a fall of 75.5%.
• Current assets fell 7% and stood at Rs 4 billion, while fixed assets rose 62% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 8%.

WINDLAS BIOTECH Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,930	3,995	1.7
Current Liabilities	Rs m	940	1,212	29.0
Long-term Debt	Rs m	4	1	-75.5
Total Liabilities	Rs m	4,890	5,270	7.8
Current assets	Rs m	3,817	3,535	-7.4
Fixed Assets	Rs m	1,073	1,734	61.6
Total Assets	Rs m	4,890	5,270	7.8

WINDLAS BIOTECH Cash Flow Statement Analysis

• WINDLAS BIOTECH's cash flow from operating activities (CFO) during FY23 stood at Rs 610 million, an improvement of 567.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -141 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -437 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 31 million from the Rs -154 million net cash flows seen during FY22.

WINDLAS BIOTECH 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	91	610	567.7%
Cash Flow from Investing Activities	Rs m	-1,546	-141	-
Cash Flow from Financing Activities	Rs m	1,301	-437	-
Net Cash Flow	Rs m	-154	31	-

Current Valuations for WINDLAS BIOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.4, an improvement from the EPS of Rs 17.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 388.2, stands at 18.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	213.8	245.1
TTM Earnings per share	Rs	17.5	20.4
Diluted earnings per share	Rs	18.3	20.5
Price to Cash Flow	x	8.7	9.2
TTM P/E ratio	x	11.5	18.0
Price / Book Value ratio	x	1.8	1.3
Market Cap	Rs m	7,203	5,055
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for WINDLAS BIOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY23, from 4.1x 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 73.4x during FY23, from 33.2x 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 improved and stood at 10.7% during FY23, from 9.7% 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 improved and stood at 14.5% during FY23, from 11.9% 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 8.2% during FY23, from 8.1% 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	4.1	2.9
Debtors’ Days	Days	87	83
Interest coverage	x	33.2	73.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.1	8.2
Return on equity	%	9.7	10.7
Return on capital employed	%	11.9	14.5

To see how WINDLAS BIOTECH has performed over the last 5 years, please visit here.

WINDLAS BIOTECH Share Price Performance

Over the last one year, WINDLAS BIOTECH share price has moved up from Rs 212.1 to Rs 388.2, registering a gain of Rs 176.1 or around 83.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,058.3 (up 0.1%). Over the last one year it has moved up from 22,617.1 to 28,058.3, a gain of 5,441 points (up 24.1%).

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for WINDLAS BIOTECH and quarterly results for WINDLAS BIOTECH)