ADVANCED ENZYME TECHNOLOGIES 2023-24 Annual Report Analysis

Wed, 3 Jul

ADVANCED ENZYME TECHNOLOGIES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

ADVANCED ENZYME TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.5% in FY24 as against 28.4% in FY23.
• Depreciation charges increased by 0.6% and finance costs increased by 18.5% YoY, respectively.
• Other income grew by 45.2% YoY.
• Net profit for the year grew by 31.9% YoY.
• Net profit margins during the year grew from 19.2% in FY23 to 22.0% in FY24.

ADVANCED ENZYME TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,406	6,239	15.4%
Other income	Rs m	255	370	45.2%
Total Revenues	Rs m	5,661	6,608	16.7%
Gross profit	Rs m	1,534	1,902	24.0%
Depreciation	Rs m	350	352	0.6%
Interest	Rs m	35	41	18.5%
Profit before tax	Rs m	1,404	1,878	33.8%
Tax	Rs m	365	509	39.3%
Profit after tax	Rs m	1,039	1,370	31.9%
Gross profit margin	%	28.4	30.5
Effective tax rate	%	26.0	27.1
Net profit margin	%	19.2	22.0

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ADVANCED ENZYME TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 776 million in FY23, thereby witnessing an increase of 37.1%.
• Long-term debt down at Rs 70 million as compared to Rs 78 million during FY23, a fall of 10.8%.
• Current assets rose 12% and stood at Rs 8 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 8%.

ADVANCED ENZYME TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,351	13,211	7.0
Current Liabilities	Rs m	776	1,064	37.1
Long-term Debt	Rs m	78	70	-10.8
Total Liabilities	Rs m	14,105	15,212	7.8
Current assets	Rs m	7,221	8,097	12.1
Fixed Assets	Rs m	6,884	7,114	3.3
Total Assets	Rs m	14,105	15,212	7.8

ADVANCED ENZYME TECHNOLOGIES Cash Flow Statement Analysis

• ADVANCED ENZYME TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 0.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -646 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -592 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 173 million from the Rs -2 billion net cash flows seen during FY23.

ADVANCED ENZYME TECHNOLOGIES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	1,404	1,414	0.7%
Cash Flow from Investing Activities	Rs m	-2,982	-646	-
Cash Flow from Financing Activities	Rs m	-258	-592	-
Net Cash Flow	Rs m	-1,709	173	-

Current Valuations for ADVANCED ENZYME TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.2, an improvement from the EPS of Rs 9.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 368.5, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 21.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	48.3	55.8
TTM Earnings per share	Rs	9.3	12.2
Diluted earnings per share	Rs	9.3	12.2
Price to Cash Flow	x	18.7	21.4
TTM P/E ratio	x	24.9	30.1
Price / Book Value ratio	x	2.5	2.8
Market Cap	Rs m	30,939	36,793
Dividends per share (Unadj.)	Rs	1.0	5.1

Ratio Analysis for ADVANCED ENZYME TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 7.6x during FY24, from 9.3x during FY23. 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 46.6x during FY24, from 41.4x during FY23. 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 10.4% during FY24, from 8.4% during FY24. 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 FY24, from 11.6% during FY23. 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 9.3% during FY24, from 7.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	9.3	7.6
Debtors’ Days	Days	68	58
Interest coverage	x	41.4	46.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.6	9.3
Return on equity	%	8.4	10.4
Return on capital employed	%	11.6	14.5

To see how ADVANCED ENZYME TECHNOLOGIES has performed over the last 5 years, please visit here.

ADVANCED ENZYME TECHNOLOGIES Share Price Performance

Over the last one year, ADVANCED ENZYME TECHNOLOGIES share price has moved up from Rs 282.6 to Rs 368.5, registering a gain of Rs 85.9 or around 30.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 37,159.3 (down 0.3%). Over the last one year it has moved up from 25,627.6 to 37,159.3, a gain of 11,532 points (up 45.0%).

Overall, the S&P BSE SENSEX is up 21.8% over the year.

(To know more, check out historical annual results for ADVANCED ENZYME TECHNOLOGIES and quarterly results for ADVANCED ENZYME TECHNOLOGIES)