KOVAI MEDICAL 2023-24 Annual Report Analysis

Wed, 17 Jul

KOVAI MEDICAL 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.

KOVAI MEDICAL Income Statement Analysis

• Operating income during the year rose 19.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.3% in FY24 as against 26.6% in FY23.
• Depreciation charges increased by 3.4% and finance costs decreased by 15.2% YoY, respectively.
• Other income grew by 31.0% YoY.
• Net profit for the year grew by 55.3% YoY.
• Net profit margins during the year grew from 11.4% in FY23 to 14.7% in FY24.

KOVAI MEDICAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,197	12,196	19.6%
Other income	Rs m	160	209	31.0%
Total Revenues	Rs m	10,357	12,405	19.8%
Gross profit	Rs m	2,716	3,454	27.2%
Depreciation	Rs m	891	921	3.4%
Interest	Rs m	433	367	-15.2%
Profit before tax	Rs m	1,552	2,376	53.0%
Tax	Rs m	395	578	46.6%
Profit after tax	Rs m	1,158	1,797	55.3%
Gross profit margin	%	26.6	28.3
Effective tax rate	%	25.4	24.3
Net profit margin	%	11.4	14.7

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KOVAI MEDICAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 12.9%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY23, a fall of 43.4%.
• Current assets fell 15% and stood at Rs 3 billion, while fixed assets rose 4% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 0%.

KOVAI MEDICAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,190	8,885	23.6
Current Liabilities	Rs m	1,812	2,045	12.9
Long-term Debt	Rs m	4,474	2,532	-43.4
Total Liabilities	Rs m	14,381	14,382	0.0
Current assets	Rs m	2,951	2,504	-15.1
Fixed Assets	Rs m	11,431	11,878	3.9
Total Assets	Rs m	14,381	14,382	0.0

KOVAI MEDICAL Cash Flow Statement Analysis

• KOVAI MEDICAL's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 30.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 8.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -375 million from the Rs 504 million net cash flows seen during FY23.

KOVAI MEDICAL 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	2,629	3,441	30.9%
Cash Flow from Investing Activities	Rs m	-1,269	-1,382	-
Cash Flow from Financing Activities	Rs m	-857	-2,435	-
Net Cash Flow	Rs m	504	-375	-

Current Valuations for KOVAI MEDICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 164.3, an improvement from the EPS of Rs 105.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,254.9, stands at 25.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	932.1	1,114.8
TTM Earnings per share	Rs	105.8	164.3
Diluted earnings per share	Rs	105.8	164.3
Price to Cash Flow	x	9.8	12.2
TTM P/E ratio	x	17.4	25.9
Price / Book Value ratio	x	2.6	3.7
Market Cap	Rs m	18,621	33,119
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for KOVAI MEDICAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 7.5x during FY24, from 4.6x 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 20.2% during FY24, from 16.1% 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 24.0% during FY24, from 17.0% 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 15.0% during FY24, from 11.1% 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	1.2
Debtors’ Days	Days	76	50
Interest coverage	x	4.6	7.5
Debt to equity ratio	x	0.6	0.3
Return on assets	%	11.1	15.0
Return on equity	%	16.1	20.2
Return on capital employed	%	17.0	24.0

To see how KOVAI MEDICAL has performed over the last 5 years, please visit here.

KOVAI MEDICAL Share Price Performance

Over the last one year, KOVAI MEDICAL share price has moved up from Rs 2,622.1 to Rs 4,254.9, registering a gain of Rs 1,632.8 or around 62.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,755.3 (down 0.1%). Over the last one year it has moved up from 26,443.1 to 38,755.3, a gain of 12,312 points (up 46.6%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for KOVAI MEDICAL and quarterly results for KOVAI MEDICAL)