INDOCO REMEDIES 2023-24 Annual Report Analysis

Thu, 12 Sep

INDOCO REMEDIES 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.

INDOCO REMEDIES Income Statement Analysis

• Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.6% in FY24 as against 17.1% in FY23.
• Depreciation charges increased by 30.1% and finance costs increased by 55.8% YoY, respectively.
• Other income grew by 685.2% YoY.
• Net profit for the year declined by 31.8% YoY.
• Net profit margins during the year declined from 8.5% in FY23 to 5.3% in FY24.

INDOCO REMEDIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,686	18,173	8.9%
Other income	Rs m	24	187	685.2%
Total Revenues	Rs m	16,710	18,360	9.9%
Gross profit	Rs m	2,860	2,480	-13.3%
Depreciation	Rs m	706	919	30.1%
Interest	Rs m	250	390	55.8%
Profit before tax	Rs m	1,928	1,358	-29.6%
Tax	Rs m	505	388	-23.2%
Profit after tax	Rs m	1,423	970	-31.8%
Gross profit margin	%	17.1	13.6
Effective tax rate	%	26.2	28.6
Net profit margin	%	8.5	5.3

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

INDOCO REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 52.1%.
• Long-term debt stood at Rs 4 billion as compared to Rs 1 billion during FY23, a growth of 145.1%.
• Current assets rose 22% and stood at Rs 10 billion, while fixed assets rose 31% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 27%.

INDOCO REMEDIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,276	11,064	7.7
Current Liabilities	Rs m	4,245	6,455	52.1
Long-term Debt	Rs m	1,435	3,517	145.1
Total Liabilities	Rs m	17,137	21,779	27.1
Current assets	Rs m	8,082	9,878	22.2
Fixed Assets	Rs m	9,055	11,901	31.4
Total Assets	Rs m	17,137	21,779	27.1

INDOCO REMEDIES Cash Flow Statement Analysis

• INDOCO REMEDIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 108.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 1,130% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 33 million from the Rs -65 million net cash flows seen during FY23.

INDOCO REMEDIES 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	1,788	1,567	-12.4%
Cash Flow from Investing Activities	Rs m	-2,082	-4,338	-
Cash Flow from Financing Activities	Rs m	228	2,804	1,129.8%
Net Cash Flow	Rs m	-65	33	-

Current Valuations for INDOCO REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.5, an decline from the EPS of Rs 15.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 372.5, stands at 46.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.7 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	181.1	197.1
TTM Earnings per share	Rs	15.4	10.5
Diluted earnings per share	Rs	15.4	10.5
Price to Cash Flow	x	14.1	17.7
TTM P/E ratio	x	21.1	46.0
Price / Book Value ratio	x	3.3	3.0
Market Cap	Rs m	33,683	33,368
Dividends per share (Unadj.)	Rs	2.3	1.5

Ratio Analysis for INDOCO REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.9x 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 4.5x during FY24, from 8.7x 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 8.8% during FY24, from 13.8% 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 12.0% during FY24, from 18.6% 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 declined and down at 6.2% during FY24, from 9.8% 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	1.9	1.5
Debtors’ Days	Days	768	816
Interest coverage	x	8.7	4.5
Debt to equity ratio	x	0.1	0.3
Return on assets	%	9.8	6.2
Return on equity	%	13.8	8.8
Return on capital employed	%	18.6	12.0

To see how INDOCO REMEDIES has performed over the last 5 years, please visit here.

INDOCO REMEDIES Share Price Performance

Over the last one year, INDOCO REMEDIES share price has moved up from Rs 339.9 to Rs 372.5, registering a gain of Rs 32.6 or around 9.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 44,221.0 (up 0.9%). Over the last one year it has moved up from 28,294.8 to 44,221.0, a gain of 15,926 points (up 56.3%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for INDOCO REMEDIES and quarterly results for INDOCO REMEDIES)