BAFNA PHARMA 2022-23 Annual Report Analysis

Tue, 7 Nov

BAFNA PHARMA 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.

BAFNA PHARMA Income Statement Analysis

• Operating income during the year rose 35.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.6% in FY23 as against 11.4% in FY22.
• Depreciation charges decreased by 2.9% and finance costs increased by 156.7% YoY, respectively.
• Other income grew by 86.4% YoY.
• Net profit for the year grew by 117.3% YoY.
• Net profit margins during the year grew from 6.1% in FY22 to 9.8% in FY23.

BAFNA PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	851	1,154	35.5%
Other income	Rs m	18	33	86.4%
Total Revenues	Rs m	869	1,186	36.5%
Gross profit	Rs m	97	157	61.2%
Depreciation	Rs m	55	53	-2.9%
Interest	Rs m	8	20	156.7%
Profit before tax	Rs m	52	116	122.7%
Tax	Rs m	0	3	0.0
Profit after tax	Rs m	52	113	117.3%
Gross profit margin	%	11.4	13.6
Effective tax rate	%	0.0	2.4
Net profit margin	%	6.1	9.8

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BAFNA PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 465 million as compared to Rs 220 million in FY22, thereby witnessing an increase of 111.1%.
• Long-term debt stood at Rs 84 million as compared to Rs 53 million during FY22, a growth of 58.6%.
• Current assets rose 72% and stood at Rs 873 million, while fixed assets rose 8% and stood at Rs 423 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 901 million during FY22, thereby witnessing a growth of 44%.

BAFNA PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	620	735	18.5
Current Liabilities	Rs m	220	465	111.1
Long-term Debt	Rs m	53	84	58.6
Total Liabilities	Rs m	901	1,296	43.7
Current assets	Rs m	509	873	71.6
Fixed Assets	Rs m	393	423	7.7
Total Assets	Rs m	901	1,296	43.7

BAFNA PHARMA Cash Flow Statement Analysis

• BAFNA PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs 50 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -75 million, an improvement of 14.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 102 million, an improvement of 311% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 76 million from the Rs -16 million net cash flows seen during FY22.

BAFNA PHARMA 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	97	50	-49.1%
Cash Flow from Investing Activities	Rs m	-65	-75	-
Cash Flow from Financing Activities	Rs m	-48	102	-
Net Cash Flow	Rs m	-16	76	-

Current Valuations for BAFNA PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 87.3, stands at 12.7 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 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 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	36.0	48.8
TTM Earnings per share	Rs	2.2	4.8
Diluted earnings per share	Rs	2.2	4.8
Price to Cash Flow	x	28.1	15.6
TTM P/E ratio	x	57.6	12.7
Price / Book Value ratio	x	5.8	3.5
Market Cap	Rs m	3,616	2,596
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAFNA PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 2.3x 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 6.7x during FY23, from 7.6x 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 15.4% during FY23, from 8.4% 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 16.7% during FY23, from 8.9% 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 10.3% during FY23, from 6.7% 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	2.3	1.9
Debtors’ Days	Days	634	1,302
Interest coverage	x	7.6	6.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.7	10.3
Return on equity	%	8.4	15.4
Return on capital employed	%	8.9	16.7

To see how BAFNA PHARMA has performed over the last 5 years, please visit here.

BAFNA PHARMA Share Price Performance

Over the last one year, BAFNA PHARMA share price has moved down from Rs 104.2 to Rs 87.3, registering a loss of Rs 16.9 or around 16.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,385.6 (up 1.1%). Over the last one year it has moved up from 24,020.7 to 28,385.6, a gain of 4,365 points (up 18.2%).

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for BAFNA PHARMA and quarterly results for BAFNA PHARMA)