ENTERO HEALTHCARE SOLUTIONS LTD. 2023-24 Annual Report Analysis

Tue, 6 Aug

ENTERO HEALTHCARE SOLUTIONS LTD. 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.

ENTERO HEALTHCARE SOLUTIONS LTD. Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 74.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.9% in FY24 as against 1.9% in FY23.
• Depreciation charges increased by 3.2% and finance costs increased by 34.1% YoY, respectively.
• Other income grew by 161.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.3% in FY23 to 1.0% in FY24.

ENTERO HEALTHCARE SOLUTIONS LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	33,002	39,223	18.9%
Other income	Rs m	55	144	161.4%
Total Revenues	Rs m	33,057	39,367	19.1%
Gross profit	Rs m	640	1,118	74.7%
Depreciation	Rs m	242	250	3.2%
Interest	Rs m	490	657	34.1%
Profit before tax	Rs m	-37	356	NA
Tax	Rs m	74	-42	NA
Profit after tax	Rs m	-111	398	NA
Gross profit margin	%	1.9	2.9
Effective tax rate	%	-201.1	-11.9
Net profit margin	%	-0.3	1.0

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ENTERO HEALTHCARE SOLUTIONS LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an decrease of -3.5%.
• Long-term debt stood at Rs 455 million as compared to Rs 311 million during FY23, a growth of 46.6%.
• Current assets rose 97% and stood at Rs 20 billion, while fixed assets rose 11% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 78%.

ENTERO HEALTHCARE SOLUTIONS LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,950	16,363	175.0
Current Liabilities	Rs m	6,240	6,019	-3.5
Long-term Debt	Rs m	311	455	46.6
Total Liabilities	Rs m	13,067	23,259	78.0
Current assets	Rs m	10,232	20,110	96.5
Fixed Assets	Rs m	2,835	3,150	11.1
Total Assets	Rs m	13,067	23,259	78.0

ENTERO HEALTHCARE SOLUTIONS LTD. Cash Flow Statement Analysis

• ENTERO HEALTHCARE SOLUTIONS LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -366 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion, an improvement of 1,351.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 9 billion, an improvement of 1,086% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -211 million net cash flows seen during FY23.

ENTERO HEALTHCARE SOLUTIONS LTD. 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	-453	-366	-
Cash Flow from Investing Activities	Rs m	-486	-7,051	-
Cash Flow from Financing Activities	Rs m	728	8,629	1,085.9%
Net Cash Flow	Rs m	-211	1,223	-

Current Valuations for ENTERO HEALTHCARE SOLUTIONS LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.2, an improvement from the EPS of Rs -27.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,212.1, stands at 132.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 74.9 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	8,029.7	901.9
TTM Earnings per share	Rs	-27.0	9.2
Diluted earnings per share	Rs	-2.6	9.2
Price to Cash Flow	x	0.0	74.9
TTM P/E ratio	x	0.0	132.5
Price / Book Value ratio	x	0.0	3.0
Market Cap	Rs m	0	48,549
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ENTERO HEALTHCARE SOLUTIONS LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 1.6x 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 1.5x during FY24, from 0.9x 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 2.4% during FY24, from -1.9% 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 6.0% during FY24, from 7.2% 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 4.5% during FY24, from 2.9% 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	1.6	3.3
Debtors’ Days	Days	57	57
Interest coverage	x	0.9	1.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	2.9	4.5
Return on equity	%	-1.9	2.4
Return on capital employed	%	7.2	6.0

To see how ENTERO HEALTHCARE SOLUTIONS LTD. has performed over the last 5 years, please visit here.

ENTERO HEALTHCARE SOLUTIONS LTD. Share Price Performance

Over the last one year, ENTERO HEALTHCARE SOLUTIONS LTD. share price has moved up from Rs 0.0 to Rs 1,212.1, registering a gain of Rs 1,212.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

(To know more, check out historical annual results for ENTERO HEALTHCARE SOLUTIONS LTD. and quarterly results for ENTERO HEALTHCARE SOLUTIONS LTD.)