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FERMENTA BIOTECH 2023-24 Annual Report Analysis
Wed, 24 Jul

FERMENTA BIOTECH 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.

FERMENTA BIOTECH Income Statement Analysis

  • Operating income during the year fell 4.1% on a year-on-year (YoY) basis.
  • The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.1% in FY24 as against 2.9% in FY23.
  • Depreciation charges decreased by 12.5% and finance costs decreased by 18.5% YoY, respectively.
  • Other income grew by 37.4% YoY.
  • Net profit for the year declined by NA YoY.
  • Net profit margins during the year grew from 15.2% in FY23 to 7.2% in FY24.

FERMENTA BIOTECH Income Statement 2023-24

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change
Net Sales Rs m 3,499 3,357 -4.1%
Other income Rs m 86 118 37.4%
Total Revenues Rs m 3,585 3,475 -3.1%
Gross profit Rs m -103 205 NA
Depreciation Rs m 282 247 -12.5%
Interest Rs m 214 174 -18.5%
Profit before tax Rs m -513 -99 NA
Tax Rs m 18 141 673.7%
Profit after tax Rs m -531 -240 NA
Gross profit margin % -2.9 6.1
Effective tax rate % -3.6 -143.2
Net profit margin % -15.2 -7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Dear Reader: If You Invest in Midcap Stocks, this is for You

FERMENTA BIOTECH Balance Sheet Analysis

  • The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -15.5%.
  • Long-term debt down at Rs 425 million as compared to Rs 836 million during FY23, a fall of 49.1%.
  • Current assets fell 4% and stood at Rs 3 billion, while fixed assets fell 20% and stood at Rs 3 billion in FY24.
  • Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a fall of 13%.

FERMENTA BIOTECH Balance Sheet as on March 2024

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change
Networth Rs m 3,021 2,761 -8.6
 
Current Liabilities Rs m 2,298 1,941 -15.5
Long-term Debt Rs m 836 425 -49.1
Total Liabilities Rs m 6,398 5,563 -13.1
 
Current assets Rs m 2,741 2,626 -4.2
Fixed Assets Rs m 3,657 2,937 -19.7
Total Assets Rs m 6,398 5,563 -13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FERMENTA BIOTECH Cash Flow Statement Analysis

  • FERMENTA BIOTECH's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY24 stood at Rs -155 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY24 stood at Rs -909 million on a YoY basis.
  • Overall, net cash flows for the company during FY24 stood at Rs -10 million from the Rs 194 million net cash flows seen during FY23.

FERMENTA BIOTECH 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 1,161 1,053 -9.3%
Cash Flow from Investing Activities Rs m -554 -155 -
Cash Flow from Financing Activities Rs m -414 -909 -
Net Cash Flow Rs m 194 -10 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FERMENTA BIOTECH

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.3, an improvement from the EPS of Rs -18.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 246.3, stands at -30.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.1 times.
  • The company's price to cash flow (P/CF) ratio stood at 646.2 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 121.3 116.3
TTM Earnings per share Rs -18.4 -8.3
Diluted earnings per share Rs -18.1 -8.2
Price to Cash Flow x -12.6 646.2
TTM P/E ratio x -5.9 -30.2
Price / Book Value ratio x 1.8 1.7
Market Cap Rs m 5,531 4,591
Dividends per share (Unadj.) Rs 1.3 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FERMENTA BIOTECH

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.2x 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 0.4x during FY24, from -1.4x 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 -8.7% during FY24, from -17.6% 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 2.4% during FY24, from -7.8% 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 -1.2% during FY24, from -5.0% 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 1.2 1.4
Debtors’ Days Days 434 759
Interest coverage x -1.4 0.4
Debt to equity ratio x 0.3 0.2
Return on assets % -5.0 -1.2
Return on equity % -17.6 -8.7
Return on capital employed % -7.8 2.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

FERMENTA BIOTECH Share Price Performance

Over the last one year, FERMENTA BIOTECH share price has moved up from Rs 140.7 to Rs 246.3, registering a gain of Rs 105.6 or around 75.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,943.2 (up 0.5%). Over the last one year it has moved up from 26,789.0 to 38,943.2, a gain of 12,154 points (up 45.4%).

Overall, the S&P BSE SENSEX is up 21.0% over the year.

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

Annual Report FAQs

What is the current share price of FERMENTA BIOTECH?

FERMENTA BIOTECH currently trades at Rs 330.1 per share. You can check out the latest share price performance of FERMENTA BIOTECH here...

What was the revenue of FERMENTA BIOTECH in FY24? How does it compare to earlier years?

The revenues of FERMENTA BIOTECH stood at Rs 3,475 m in FY24, which was down -3.1% compared to Rs 3,585 m reported in FY23.

FERMENTA BIOTECH's revenue has grown from Rs 3,072 m in FY20 to Rs 3,475 m in FY24.

Over the past 5 years, the revenue of FERMENTA BIOTECH has grown at a CAGR of 3.1%.

What was the net profit of FERMENTA BIOTECH in FY24? How does it compare to earlier years?

The net loss of FERMENTA BIOTECH stood at Rs -240 m in FY24, which was NA compared to Rs -531 m reported in FY23.

This compares to a net profit of Rs 151 m in FY22 and a net profit of Rs 425 m in FY21.

Over the past 5 years, FERMENTA BIOTECH net profit has grown at a CAGR of NaN%.

What does the cash flow statement of FERMENTA BIOTECH reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of FERMENTA BIOTECH reveals:

  • Cash flow from operations decreased in FY24 and stood at Rs 1,053 m as compared to Rs 1,161 m in FY23.
  • Cash flow from investments increased in FY24 and stood at Rs -155 m as compared to Rs -554 m in FY23.
  • Cash flow from financial activity decreased in FY24 and stood at Rs -909 m as compared to Rs -414 m in FY23.

Here's the cash flow statement of FERMENTA BIOTECH for the past 5 years.

(Rs m)FY20FY21FY22FY23FY24
From Operations3456264341,1611,053
From Investments-437-416-260-554-155
From Financial Activity-474-11-216-414-909
Net Cashflow-566205-42194-10

What does the Key Ratio analysis of FERMENTA BIOTECH reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of FERMENTA BIOTECH reveals:

  • Operating profit margins witnessed a fall and down at 6.1% in FY24 as against 2.9% in FY23.
  • Net profit margins grew from 15.2% in FY23 to 7.2% in FY24.
  • Debt to Equity ratio for FY24 stood at 0.2 as compared to 0.3 in FY23.

Here's the ratio/financial analysis of FERMENTA BIOTECH for the past 5 years.

 FY20FY21FY22FY23FY24
Operating Profit Margin (%)22.021.915.6-2.96.1
Net Profit Margin (%)20.311.33.8-15.2-7.2
Debt to Equity Ratio (x)0.30.30.30.30.2

 

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