BIOCON 2023-24 Annual Report Analysis

Mon, 22 Jul

BIOCON 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.

BIOCON Income Statement Analysis

• Operating income during the year rose 32.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 86.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.0% in FY24 as against 14.9% in FY23.
• Depreciation charges increased by 40.9% and finance costs increased by 132.6% YoY, respectively.
• Other income grew by 26.0% YoY.
• Net profit for the year grew by 101.8% YoY.
• Net profit margins during the year grew from 5.8% in FY23 to 8.8% in FY24.

BIOCON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	111,742	147,557	32.1%
Other income	Rs m	7,681	9,675	26.0%
Total Revenues	Rs m	119,423	157,232	31.7%
Gross profit	Rs m	16,611	31,009	86.7%
Depreciation	Rs m	11,131	15,688	40.9%
Interest	Rs m	4,190	9,744	132.6%
Profit before tax	Rs m	8,971	15,252	70.0%
Tax	Rs m	2,541	2,274	-10.5%
Profit after tax	Rs m	6,430	12,978	101.8%
Gross profit margin	%	14.9	21.0
Effective tax rate	%	28.3	14.9
Net profit margin	%	5.8	8.8

Don't Miss: Key Information for Long-term Investors

BIOCON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 154 billion as compared to Rs 85 billion in FY23, thereby witnessing an increase of 80.5%.
• Long-term debt down at Rs 129 billion as compared to Rs 153 billion during FY23, a fall of 15.4%.
• Current assets rose 23% and stood at Rs 152 billion, while fixed assets rose 3% and stood at Rs 406 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 558 billion as against Rs 517 billion during FY23, thereby witnessing a growth of 8%.

BIOCON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	175,929	194,636	10.6
Current Liabilities	Rs m	85,107	153,588	80.5
Long-term Debt	Rs m	152,905	129,324	-15.4
Total Liabilities	Rs m	517,418	557,534	7.8
Current assets	Rs m	123,340	151,792	23.1
Fixed Assets	Rs m	394,078	405,742	3.0
Total Assets	Rs m	517,418	557,534	7.8

BIOCON Cash Flow Statement Analysis

• BIOCON 's cash flow from operating activities (CFO) during FY24 stood at Rs 30 billion, an improvement of 59.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -10 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -23 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs 6 billion net cash flows seen during FY23.

BIOCON 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	18,525	29,539	59.5%
Cash Flow from Investing Activities	Rs m	-142,818	-10,045	-
Cash Flow from Financing Activities	Rs m	130,487	-23,327	-
Net Cash Flow	Rs m	6,411	-3,804	-

Current Valuations for BIOCON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 338.9, stands at 29.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 10.7 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	93.1	122.9
TTM Earnings per share	Rs	5.4	10.8
Diluted earnings per share	Rs	5.4	10.8
Price to Cash Flow	x	14.1	10.7
TTM P/E ratio	x	30.6	29.4
Price / Book Value ratio	x	2.0	1.6
Market Cap	Rs m	347,814	308,014
Dividends per share (Unadj.)	Rs	1.5	0.5

Ratio Analysis for BIOCON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.4x 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 deteriorated and stood at 2.6x during FY24, from 3.1x 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 6.7% during FY24, from 3.7% 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 7.7% during FY24, from 4.0% 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 4.1% during FY24, from 2.1% 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	1.4	1.0
Debtors’ Days	Days	117	154
Interest coverage	x	3.1	2.6
Debt to equity ratio	x	0.9	0.7
Return on assets	%	2.1	4.1
Return on equity	%	3.7	6.7
Return on capital employed	%	4.0	7.7

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

BIOCON Share Price Performance

Over the last one year, BIOCON share price has moved up from Rs 264.0 to Rs 338.9, registering a gain of Rs 74.9 or around 28.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,594.9 (up 1.1%). Over the last one year it has moved up from 26,692.7 to 38,594.9, a gain of 11,902 points (up 44.6%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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