ZYDUS LIFESCIENCES 2023-24 Annual Report Analysis

Wed, 17 Jul

ZYDUS LIFESCIENCES 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.

ZYDUS LIFESCIENCES Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 78.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.0% in FY24 as against 17.2% in FY23.
• Depreciation charges increased by 5.7% and finance costs decreased by 37.5% YoY, respectively.
• Other income declined by 22.2% YoY.
• Net profit for the year grew by 91.4% YoY.
• Net profit margins during the year grew from 11.6% in FY23 to 19.6% in FY24.

ZYDUS LIFESCIENCES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	172,374	195,474	13.4%
Other income	Rs m	4,746	3,694	-22.2%
Total Revenues	Rs m	177,120	199,168	12.4%
Gross profit	Rs m	29,677	52,848	78.1%
Depreciation	Rs m	7,227	7,641	5.7%
Interest	Rs m	1,299	812	-37.5%
Profit before tax	Rs m	25,897	48,089	85.7%
Tax	Rs m	5,878	9,775	66.3%
Profit after tax	Rs m	20,019	38,314	91.4%
Gross profit margin	%	17.2	27.0
Effective tax rate	%	22.7	20.3
Net profit margin	%	11.6	19.6

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ZYDUS LIFESCIENCES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 53 billion as compared to Rs 55 billion in FY23, thereby witnessing an decrease of -3.4%.
• Current assets rose 14% and stood at Rs 114 billion, while fixed assets rose 11% and stood at Rs 161 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 276 billion as against Rs 245 billion during FY23, thereby witnessing a growth of 13%.

ZYDUS LIFESCIENCES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	175,158	198,295	13.2
Current Liabilities	Rs m	55,267	53,397	-3.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	244,940	276,366	12.8
Current assets	Rs m	100,082	114,198	14.1
Fixed Assets	Rs m	144,776	161,352	11.4
Total Assets	Rs m	244,940	276,366	12.8

ZYDUS LIFESCIENCES Cash Flow Statement Analysis

• ZYDUS LIFESCIENCES's cash flow from operating activities (CFO) during FY24 stood at Rs 32 billion, an improvement of 20.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -18 billion, an improvement of 59% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -748 million from the Rs -2 billion net cash flows seen during FY23.

ZYDUS LIFESCIENCES 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	26,888	32,279	20.0%
Cash Flow from Investing Activities	Rs m	15,350	-14,752	-
Cash Flow from Financing Activities	Rs m	-44,004	-18,104	-
Net Cash Flow	Rs m	-1,700	-748	-

Current Valuations for ZYDUS LIFESCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.1, an improvement from the EPS of Rs 19.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,184.9, stands at 31.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	170.3	194.3
TTM Earnings per share	Rs	19.8	38.1
Diluted earnings per share	Rs	19.9	38.1
Price to Cash Flow	x	18.2	16.6
TTM P/E ratio	x	24.7	31.1
Price / Book Value ratio	x	2.4	3.8
Market Cap	Rs m	412,144	761,065
Dividends per share (Unadj.)	Rs	6.0	3.0

Ratio Analysis for ZYDUS LIFESCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.8x 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 60.2x during FY24, from 20.9x 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 19.3% during FY24, from 11.4% 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 24.7% during FY24, from 15.5% 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 14.2% during FY24, from 8.7% 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	1.8	2.1
Debtors’ Days	Days	94	97
Interest coverage	x	20.9	60.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	14.2
Return on equity	%	11.4	19.3
Return on capital employed	%	15.5	24.7

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

ZYDUS LIFESCIENCES Share Price Performance

Over the last one year, ZYDUS LIFESCIENCES share price has moved up from Rs 602.1 to Rs 1,184.9, registering a gain of Rs 582.8 or around 96.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,755.3 (down 0.1%). Over the last one year it has moved up from 26,443.1 to 38,755.3, a gain of 12,312 points (up 46.6%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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