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

Don't Miss: Key Information for Long-term Investors

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

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	-

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

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

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)