DR. LAL PATHLABS 2023-24 Annual Report Analysis

Thu, 6 Jun

DR. LAL PATHLABS 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.

DR. LAL PATHLABS Income Statement Analysis

• Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.4% in FY24 as against 24.3% in FY23.
• Depreciation charges decreased by 4.4% and finance costs decreased by 21.8% YoY, respectively.
• Other income grew by 65.8% YoY.
• Net profit for the year grew by 50.3% YoY.
• Net profit margins during the year grew from 12.0% in FY23 to 16.3% in FY24.

DR. LAL PATHLABS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,169	22,266	10.4%
Other income	Rs m	417	692	65.8%
Total Revenues	Rs m	20,586	22,958	11.5%
Gross profit	Rs m	4,898	6,092	24.4%
Depreciation	Rs m	1,502	1,436	-4.4%
Interest	Rs m	375	294	-21.8%
Profit before tax	Rs m	3,438	5,055	47.0%
Tax	Rs m	1,028	1,432	39.3%
Profit after tax	Rs m	2,411	3,623	50.3%
Gross profit margin	%	24.3	27.4
Effective tax rate	%	29.9	28.3
Net profit margin	%	12.0	16.3

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DR. LAL PATHLABS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -1.0%.
• Current assets rose 16% and stood at Rs 11 billion, while fixed assets fell 6% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 3%.

DR. LAL PATHLABS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,080	17,981	11.8
Current Liabilities	Rs m	4,698	4,652	-1.0
Long-term Debt	Rs m	833	0	-100.0
Total Liabilities	Rs m	23,451	24,111	2.8
Current assets	Rs m	9,731	11,267	15.8
Fixed Assets	Rs m	13,721	12,844	-6.4
Total Assets	Rs m	23,451	24,111	2.8

DR. LAL PATHLABS Cash Flow Statement Analysis

• DR. LAL PATHLABS's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 17.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -243 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 972 million from the Rs -1 billion net cash flows seen during FY23.

DR. LAL PATHLABS 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	4,560	5,353	17.4%
Cash Flow from Investing Activities	Rs m	-2,873	-243	-
Cash Flow from Financing Activities	Rs m	-2,832	-4,139	-
Net Cash Flow	Rs m	-1,145	972	-

Current Valuations for DR. LAL PATHLABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.4, an improvement from the EPS of Rs 28.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,737.1, stands at 63.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.7 times, while the price to sales ratio stands at 10.3 times.
• The company's price to cash flow (P/CF) ratio stood at 37.9 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	241.9	266.7
TTM Earnings per share	Rs	28.9	43.4
Diluted earnings per share	Rs	28.9	43.4
Price to Cash Flow	x	39.0	37.9
TTM P/E ratio	x	63.3	63.1
Price / Book Value ratio	x	12.0	10.6
Market Cap	Rs m	193,109	191,500
Dividends per share (Unadj.)	Rs	12.0	24.0

Ratio Analysis for DR. LAL PATHLABS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 2.1x 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 18.2x during FY24, from 10.2x 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 20.1% during FY24, from 15.0% 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 29.7% during FY24, from 22.5% 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 16.2% during FY24, from 11.9% 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	2.1	2.4
Debtors’ Days	Days	13	13
Interest coverage	x	10.2	18.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.9	16.2
Return on equity	%	15.0	20.1
Return on capital employed	%	22.5	29.7

To see how DR. LAL PATHLABS has performed over the last 5 years, please visit here.

DR. LAL PATHLABS Share Price Performance

Over the last one year, DR. LAL PATHLABS share price has moved up from Rs 2,018.2 to Rs 2,737.1, registering a gain of Rs 718.9 or around 35.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 35,565.5 (down 0.0%). Over the last one year it has moved up from 24,209.5 to 35,565.5, a gain of 11,356 points (up 46.9%).

Overall, the S&P BSE SENSEX is up 19.0% over the year.

(To know more, check out historical annual results for DR. LAL PATHLABS and quarterly results for DR. LAL PATHLABS)