ZYDUS WELLNESS 2023-24 Annual Report Analysis

Thu, 11 Jul

ZYDUS WELLNESS 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 WELLNESS Income Statement Analysis

• Operating income during the year rose 3.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.6% in FY24 as against 14.5% in FY23.
• Depreciation charges decreased by 4.8% and finance costs increased by 49.1% YoY, respectively.
• Other income grew by 185.7% YoY.
• Net profit for the year declined by 14.0% YoY.
• Net profit margins during the year declined from 13.8% in FY23 to 11.5% in FY24.

ZYDUS WELLNESS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,548	23,278	3.2%
Other income	Rs m	49	140	185.7%
Total Revenues	Rs m	22,597	23,418	3.6%
Gross profit	Rs m	3,271	2,939	-10.1%
Depreciation	Rs m	250	238	-4.8%
Interest	Rs m	161	240	49.1%
Profit before tax	Rs m	2,909	2,601	-10.6%
Tax	Rs m	-195	-68	NA
Profit after tax	Rs m	3,104	2,669	-14.0%
Gross profit margin	%	14.5	12.6
Effective tax rate	%	-6.7	-2.6
Net profit margin	%	13.8	11.5

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ZYDUS WELLNESS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 11.1%.
• Current assets rose 34% and stood at Rs 12 billion, while fixed assets fell 1% and stood at Rs 47 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 60 billion as against Rs 57 billion during FY23, thereby witnessing a growth of 5%.

ZYDUS WELLNESS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	51,226	53,575	4.6
Current Liabilities	Rs m	6,924	7,694	11.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	56,838	59,921	5.4
Current assets	Rs m	9,078	12,143	33.8
Fixed Assets	Rs m	47,753	47,421	-0.7
Total Assets	Rs m	56,838	59,921	5.4

ZYDUS WELLNESS Cash Flow Statement Analysis

• ZYDUS WELLNESS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 168.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -193 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -257 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -1 billion net cash flows seen during FY23.

ZYDUS WELLNESS 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	917	2,464	168.7%
Cash Flow from Investing Activities	Rs m	-849	-193	-
Cash Flow from Financing Activities	Rs m	-1,385	-257	-
Net Cash Flow	Rs m	-1,317	2,014	-

Current Valuations for ZYDUS WELLNESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.9, an decline from the EPS of Rs 48.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,108.2, stands at 50.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 34.4 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	354.4	365.8
TTM Earnings per share	Rs	48.8	41.9
Diluted earnings per share	Rs	48.8	41.9
Price to Cash Flow	x	29.4	34.4
TTM P/E ratio	x	31.8	50.3
Price / Book Value ratio	x	2.0	1.9
Market Cap	Rs m	100,380	100,082
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for ZYDUS WELLNESS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.3x 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 deteriorated and stood at 11.8x during FY24, from 19.1x 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 declined and down at 5.0% during FY24, from 6.1% 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 declined and down at 5.3% during FY24, from 6.0% 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 declined and down at 4.9% during FY24, from 5.7% 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	1.3	1.6
Debtors’ Days	Days	34	44
Interest coverage	x	19.1	11.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	4.9
Return on equity	%	6.1	5.0
Return on capital employed	%	6.0	5.3

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

ZYDUS WELLNESS Share Price Performance

Over the last one year, ZYDUS WELLNESS share price has moved up from Rs 1,472.5 to Rs 2,108.2, registering a gain of Rs 635.7 or around 43.2%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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