BAL PHARMA 2022-23 Annual Report Analysis

Wed, 25 Oct

BAL 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.

BAL PHARMA Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY23 as against 8.5% in FY22.
• Depreciation charges increased by 1.0% and finance costs increased by 12.9% YoY, respectively.
• Other income declined by 81.7% YoY.
• Net profit for the year declined by 54.1% YoY.
• Net profit margins during the year declined from 2.0% in FY22 to 0.9% in FY23.

BAL PHARMA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,812	3,042	8.2%
Other income	Rs m	52	9	-81.7%
Total Revenues	Rs m	2,864	3,052	6.6%
Gross profit	Rs m	240	253	5.3%
Depreciation	Rs m	90	91	1.0%
Interest	Rs m	109	123	12.9%
Profit before tax	Rs m	92	47	-48.3%
Tax	Rs m	35	21	-38.8%
Profit after tax	Rs m	57	26	-54.1%
Gross profit margin	%	8.5	8.3
Effective tax rate	%	37.9	44.8
Net profit margin	%	2.0	0.9

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BAL PHARMA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 26.4%.
• Long-term debt stood at Rs 305 million as compared to Rs 270 million during FY22, a growth of 13.0%.
• Current assets rose 24% and stood at Rs 2 billion, while fixed assets rose 9% and stood at Rs 829 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 19%.

BAL PHARMA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	577	638	10.6
Current Liabilities	Rs m	1,656	2,093	26.4
Long-term Debt	Rs m	270	305	13.0
Total Liabilities	Rs m	2,605	3,110	19.4
Current assets	Rs m	1,846	2,282	23.6
Fixed Assets	Rs m	760	829	9.1
Total Assets	Rs m	2,605	3,110	19.4

BAL PHARMA Cash Flow Statement Analysis

• BAL PHARMA's cash flow from operating activities (CFO) during FY23 stood at Rs -18 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -222 million, an improvement of 133.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 244 million, an improvement of 242% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 4 million from the Rs 1 million net cash flows seen during FY22.

BAL 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	268	-18	-
Cash Flow from Investing Activities	Rs m	-95	-222	-
Cash Flow from Financing Activities	Rs m	-172	244	-
Net Cash Flow	Rs m	1	4	320.2%

Current Valuations for BAL PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.7, an decline from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 85.8, stands at 55.4 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 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.2 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	189.8	193.9
TTM Earnings per share	Rs	3.8	1.7
Diluted earnings per share	Rs	3.6	1.7
Price to Cash Flow	x	11.5	13.2
TTM P/E ratio	x	29.7	55.4
Price / Book Value ratio	x	2.6	2.4
Market Cap	Rs m	1,494	1,549
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for BAL PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.1x 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 deteriorated and stood at 1.4x during FY23, from 1.8x 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 4.1% during FY23, from 9.9% 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 18.1% during FY23, from 23.7% 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 4.8% during FY23, from 6.4% 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	1.1	1.1
Debtors’ Days	Days	978	1,128
Interest coverage	x	1.8	1.4
Debt to equity ratio	x	0.5	0.5
Return on assets	%	6.4	4.8
Return on equity	%	9.9	4.1
Return on capital employed	%	23.7	18.1

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

BAL PHARMA Share Price Performance

Over the last one year, BAL PHARMA share price has moved down from Rs 93.0 to Rs 85.8, registering a loss of Rs 7.2 or around 7.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,314.6 (down 0.7%). Over the last one year it has moved up from 23,602.5 to 27,314.6, a gain of 3,712 points (up 15.7%).

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

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