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SUVEN PHARMACEUTICALS 2022-23 Annual Report Analysis

Fri, 31 Mar

SUVEN PHARMACEUTICALS 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.

SUVEN PHARMACEUTICALS 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 7.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 42.8% in FY23 as against 47.2% in FY22.
• Depreciation charges increased by 22.1% and finance costs increased by 50.2% YoY, respectively.
• Other income declined by 49.8% YoY.
• Net profit for the year declined by 9.4% YoY.
• Net profit margins during the year declined from 34.4% in FY22 to 30.7% in FY23.

SUVEN PHARMACEUTICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,202	13,403	1.5%
Other income	Rs m	924	464	-49.8%
Total Revenues	Rs m	14,126	13,867	-1.8%
Gross profit	Rs m	6,228	5,739	-7.9%
Depreciation	Rs m	391	477	22.1%
Interest	Rs m	85	128	50.2%
Profit before tax	Rs m	6,676	5,597	-16.2%
Tax	Rs m	2,138	1,484	-30.6%
Profit after tax	Rs m	4,538	4,113	-9.4%
Gross profit margin	%	47.2	42.8
Effective tax rate	%	32.0	26.5
Net profit margin	%	34.4	30.7

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SUVEN PHARMACEUTICALS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -12.8%.
• Long-term debt down at Rs 46 million as compared to Rs 284 million during FY22, a fall of 84.0%.
• Current assets fell 9% and stood at Rs 12 billion, while fixed assets rose 36% and stood at Rs 10 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 7%.

SUVEN PHARMACEUTICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,272	17,352	13.6
Current Liabilities	Rs m	3,475	3,031	-12.8
Long-term Debt	Rs m	284	46	-84.0
Total Liabilities	Rs m	19,668	21,101	7.3
Current assets	Rs m	12,652	11,554	-8.7
Fixed Assets	Rs m	7,017	9,547	36.1
Total Assets	Rs m	19,668	21,101	7.3

SUVEN PHARMACEUTICALS Cash Flow Statement Analysis

• SUVEN PHARMACEUTICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 36.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 43.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 202 million from the Rs 374 million net cash flows seen during FY22.

SUVEN PHARMACEUTICALS 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	3,300	4,509	36.6%
Cash Flow from Investing Activities	Rs m	-1,361	-1,948	-
Cash Flow from Financing Activities	Rs m	-1,565	-2,358	-
Net Cash Flow	Rs m	374	202	-45.9%

Current Valuations for SUVEN PHARMACEUTICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.2, an decline from the EPS of Rs 17.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 472.7, stands at 29.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 9.0 times.
• The company's price to cash flow (P/CF) ratio stood at 28.2 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	51.9	52.7
TTM Earnings per share	Rs	17.8	16.2
Diluted earnings per share	Rs	17.8	16.2
Price to Cash Flow	x	31.9	28.2
TTM P/E ratio	x	38.1	29.3
Price / Book Value ratio	x	9.1	7.5
Market Cap	Rs m	138,502	129,395
Dividends per share (Unadj.)	Rs	5.0	6.0

Ratio Analysis for SUVEN PHARMACEUTICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.8x during FY23, from 3.6x 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 44.7x during FY23, from 79.3x 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 23.7% during FY23, from 29.7% 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 declined and down at 32.9% during FY23, from 43.5% 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 20.1% during FY23, from 23.5% 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	3.6	3.8
Debtors’ Days	Days	653	302
Interest coverage	x	79.3	44.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	23.5	20.1
Return on equity	%	29.7	23.7
Return on capital employed	%	43.5	32.9

To see how SUVEN PHARMACEUTICALS has performed over the last 5 years, please visit here.

SUVEN PHARMACEUTICALS Share Price Performance

Over the last one year, SUVEN PHARMACEUTICALS share price has moved down from Rs 618.0 to Rs 472.7, registering a loss of Rs 145.3 or around 23.5%.

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 SUVEN PHARMACEUTICALS and quarterly results for SUVEN PHARMACEUTICALS)