DIVIS LABORATORIES 2023-24 Annual Report Analysis

Wed, 17 Jul

DIVIS LABORATORIES 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.

DIVIS LABORATORIES Income Statement Analysis

• Operating income during the year rose 1.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.1% in FY24 as against 30.5% in FY23.
• Depreciation charges increased by 10.2% and finance costs increased by 100.0% YoY, respectively.
• Other income declined by 1.7% YoY.
• Net profit for the year declined by 12.3% YoY.
• Net profit margins during the year declined from 23.5% in FY23 to 20.4% in FY24.

DIVIS LABORATORIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	77,670	78,450	1.0%
Other income	Rs m	3,450	3,390	-1.7%
Total Revenues	Rs m	81,120	81,840	0.9%
Gross profit	Rs m	23,690	22,060	-6.9%
Depreciation	Rs m	3,430	3,780	10.2%
Interest	Rs m	20	40	100.0%
Profit before tax	Rs m	23,690	21,630	-8.7%
Tax	Rs m	5,450	5,630	3.3%
Profit after tax	Rs m	18,240	16,000	-12.3%
Gross profit margin	%	30.5	28.1
Effective tax rate	%	23.0	26.0
Net profit margin	%	23.5	20.4

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DIVIS LABORATORIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 18 billion as compared to Rs 15 billion in FY23, thereby witnessing an increase of 14.0%.
• Current assets rose 4% and stood at Rs 102 billion, while fixed assets rose 13% and stood at Rs 58 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 159 billion as against Rs 149 billion during FY23, thereby witnessing a growth of 7%.

DIVIS LABORATORIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	127,670	135,710	6.3
Current Liabilities	Rs m	15,390	17,550	14.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	148,630	159,370	7.2
Current assets	Rs m	97,500	101,520	4.1
Fixed Assets	Rs m	51,130	57,850	13.1
Total Assets	Rs m	148,630	159,370	7.2

DIVIS LABORATORIES Cash Flow Statement Analysis

• DIVIS LABORATORIES's cash flow from operating activities (CFO) during FY24 stood at Rs 13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -10 billion net cash flows seen during FY23.

DIVIS LABORATORIES 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	24,590	12,610	-48.7%
Cash Flow from Investing Activities	Rs m	-27,070	-2,690	-
Cash Flow from Financing Activities	Rs m	-7,970	-7,990	-
Net Cash Flow	Rs m	-10,450	1,930	-

Current Valuations for DIVIS LABORATORIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.3, an decline from the EPS of Rs 68.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,565.0, stands at 75.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.9 times, while the price to sales ratio stands at 15.4 times.
• The company's price to cash flow (P/CF) ratio stood at 46.3 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	292.6	295.5
TTM Earnings per share	Rs	68.7	60.3
Diluted earnings per share	Rs	68.7	60.3
Price to Cash Flow	x	34.6	46.3
TTM P/E ratio	x	41.2	75.7
Price / Book Value ratio	x	7.7	6.7
Market Cap	Rs m	978,378	915,508
Dividends per share (Unadj.)	Rs	30.0	30.0

Ratio Analysis for DIVIS LABORATORIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.8x during FY24, from 6.3x 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 541.8x during FY24, from 1,185.5x 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 11.8% during FY24, from 14.3% 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 16.0% during FY24, from 18.6% 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 10.1% during FY24, from 12.3% 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	6.3	5.8
Debtors’ Days	Days	8	10
Interest coverage	x	1,185.5	541.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.3	10.1
Return on equity	%	14.3	11.8
Return on capital employed	%	18.6	16.0

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

DIVIS LABORATORIES Share Price Performance

Over the last one year, DIVIS LABORATORIES share price has moved up from Rs 3,660.4 to Rs 4,565.0, registering a gain of Rs 904.6 or around 24.7%.

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 DIVIS LABORATORIES and quarterly results for DIVIS LABORATORIES)