KRSNAA DIAGNOSTICS 2023-24 Annual Report Analysis

Mon, 9 Sep

KRSNAA DIAGNOSTICS 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.

KRSNAA DIAGNOSTICS Income Statement Analysis

• Operating income during the year rose 27.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.3% in FY24 as against 25.1% in FY23.
• Depreciation charges increased by 38.6% and finance costs increased by 114.2% YoY, respectively.
• Other income declined by 13.3% YoY.
• Net profit for the year declined by 8.5% YoY.
• Net profit margins during the year declined from 12.8% in FY23 to 9.2% in FY24.

KRSNAA DIAGNOSTICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,871	6,196	27.2%
Other income	Rs m	194	168	-13.3%
Total Revenues	Rs m	5,065	6,364	25.7%
Gross profit	Rs m	1,223	1,442	17.9%
Depreciation	Rs m	538	745	38.6%
Interest	Rs m	77	165	114.2%
Profit before tax	Rs m	802	700	-12.7%
Tax	Rs m	181	132	-27.2%
Profit after tax	Rs m	621	568	-8.5%
Gross profit margin	%	25.1	23.3
Effective tax rate	%	22.6	18.8
Net profit margin	%	12.8	9.2

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KRSNAA DIAGNOSTICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 992 million in FY23, thereby witnessing an increase of 183.8%.
• Long-term debt stood at Rs 419 million as compared to Rs 243 million during FY23, a growth of 72.5%.
• Current assets rose 89% and stood at Rs 4 billion, while fixed assets rose 9% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 29%.

KRSNAA DIAGNOSTICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,361	8,074	9.7
Current Liabilities	Rs m	992	2,815	183.8
Long-term Debt	Rs m	243	419	72.5
Total Liabilities	Rs m	9,085	11,703	28.8
Current assets	Rs m	2,229	4,212	88.9
Fixed Assets	Rs m	6,856	7,491	9.3
Total Assets	Rs m	9,085	11,703	28.8

KRSNAA DIAGNOSTICS Cash Flow Statement Analysis

• KRSNAA DIAGNOSTICS's cash flow from operating activities (CFO) during FY24 stood at Rs 243 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 18.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 842 million, an improvement of 354% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -203 million from the Rs -657 million net cash flows seen during FY23.

KRSNAA DIAGNOSTICS 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	763	243	-68.1%
Cash Flow from Investing Activities	Rs m	-1,089	-1,289	-
Cash Flow from Financing Activities	Rs m	-331	842	-
Net Cash Flow	Rs m	-657	-203	-

Current Valuations for KRSNAA DIAGNOSTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.6, an decline from the EPS of Rs 19.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 757.9, stands at 40.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.2 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	155.1	191.9
TTM Earnings per share	Rs	19.8	17.6
Diluted earnings per share	Rs	19.2	17.6
Price to Cash Flow	x	12.8	15.2
TTM P/E ratio	x	23.9	40.7
Price / Book Value ratio	x	2.2	2.5
Market Cap	Rs m	15,840	19,976
Dividends per share (Unadj.)	Rs	2.8	2.5

Ratio Analysis for KRSNAA DIAGNOSTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 2.2x 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 5.2x during FY24, from 11.4x 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 7.0% during FY24, from 8.4% 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 10.2% during FY24, from 11.6% 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 6.3% during FY24, from 7.7% 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	2.2	1.5
Debtors’ Days	Days	55	104
Interest coverage	x	11.4	5.2
Debt to equity ratio	x	0.0	0.1
Return on assets	%	7.7	6.3
Return on equity	%	8.4	7.0
Return on capital employed	%	11.6	10.2

To see how KRSNAA DIAGNOSTICS has performed over the last 5 years, please visit here.

KRSNAA DIAGNOSTICS Share Price Performance

Over the last one year, KRSNAA DIAGNOSTICS share price has moved up from Rs 682.3 to Rs 757.9, registering a gain of Rs 75.6 or around 11.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,414.8 (down 0.1%). Over the last one year it has moved up from 28,280.7 to 43,414.8, a gain of 15,134 points (up 53.5%).

Overall, the S&P BSE SENSEX is up 23.7% over the year.

(To know more, check out historical annual results for KRSNAA DIAGNOSTICS and quarterly results for KRSNAA DIAGNOSTICS)