HESTER BIOSCIENCES 2023-24 Annual Report Analysis

Tue, 30 Jul

HESTER BIOSCIENCES 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.

HESTER BIOSCIENCES Income Statement Analysis

• Operating income during the year rose 14.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.0% in FY24 as against 20.6% in FY23.
• Depreciation charges decreased by 17.0% and finance costs increased by 112.2% YoY, respectively.
• Other income declined by 27.5% YoY.
• Net profit for the year declined by 24.5% YoY.
• Net profit margins during the year declined from 10.5% in FY23 to 7.0% in FY24.

HESTER BIOSCIENCES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,661	3,045	14.5%
Other income	Rs m	154	111	-27.5%
Total Revenues	Rs m	2,814	3,157	12.2%
Gross profit	Rs m	548	578	5.4%
Depreciation	Rs m	207	172	-17.0%
Interest	Rs m	93	198	112.2%
Profit before tax	Rs m	402	320	-20.4%
Tax	Rs m	121	108	-11.0%
Profit after tax	Rs m	280	212	-24.5%
Gross profit margin	%	20.6	19.0
Effective tax rate	%	30.2	33.8
Net profit margin	%	10.5	7.0

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HESTER BIOSCIENCES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -28.9%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 1.7%.
• Current assets fell 6% and stood at Rs 2 billion, while fixed assets rose 1% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 7 billion during FY23, thereby witnessing a fall of 1%.

HESTER BIOSCIENCES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,797	2,918	4.3
Current Liabilities	Rs m	1,487	1,058	-28.9
Long-term Debt	Rs m	1,849	1,818	-1.7
Total Liabilities	Rs m	6,700	6,623	-1.1
Current assets	Rs m	2,276	2,146	-5.7
Fixed Assets	Rs m	4,424	4,477	1.2
Total Assets	Rs m	6,700	6,623	-1.1

HESTER BIOSCIENCES Cash Flow Statement Analysis

• HESTER BIOSCIENCES's cash flow from operating activities (CFO) during FY24 stood at Rs 481 million, an improvement of 104.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -227 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -260 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 million from the Rs -116 million net cash flows seen during FY23.

HESTER BIOSCIENCES 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	236	481	104.0%
Cash Flow from Investing Activities	Rs m	-770	-227	-
Cash Flow from Financing Activities	Rs m	418	-260	-
Net Cash Flow	Rs m	-116	-4	-

Current Valuations for HESTER BIOSCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.9, an decline from the EPS of Rs 32.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,153.9, stands at 162.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 35.7 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	312.7	357.9
TTM Earnings per share	Rs	32.9	24.9
Diluted earnings per share	Rs	33.0	24.9
Price to Cash Flow	x	26.5	35.7
TTM P/E ratio	x	54.7	162.0
Price / Book Value ratio	x	6.5	4.7
Market Cap	Rs m	18,152	13,702
Dividends per share (Unadj.)	Rs	8.0	6.0

Ratio Analysis for HESTER BIOSCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.5x 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 2.6x during FY24, from 5.3x 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 7.3% during FY24, from 10.0% 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 10.9% during FY24, from 10.6% 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 improved and stood at 6.2% during FY24, from 5.6% 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	1.5	2.0
Debtors’ Days	Days	109	94
Interest coverage	x	5.3	2.6
Debt to equity ratio	x	0.7	0.6
Return on assets	%	5.6	6.2
Return on equity	%	10.0	7.3
Return on capital employed	%	10.6	10.9

To see how HESTER BIOSCIENCES has performed over the last 5 years, please visit here.

HESTER BIOSCIENCES Share Price Performance

Over the last one year, HESTER BIOSCIENCES share price has moved up from Rs 1,683.8 to Rs 3,153.9, registering a gain of Rs 1,470.1 or around 87.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,397.3 (up 0.3%). Over the last one year it has moved up from 27,747.1 to 40,397.3, a gain of 12,650 points (up 45.6%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for HESTER BIOSCIENCES and quarterly results for HESTER BIOSCIENCES)