LINCOLN PHAR 2023-24 Annual Report Analysis

Thu, 17 Oct

LINCOLN PHAR 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.

LINCOLN PHAR Income Statement Analysis

• Operating income during the year rose 13.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.2% in FY24 as against 17.5% in FY23.
• Depreciation charges increased by 15.9% and finance costs decreased by 27.8% YoY, respectively.
• Other income grew by 53.2% YoY.
• Net profit for the year grew by 28.0% YoY.
• Net profit margins during the year grew from 14.3% in FY23 to 16.1% in FY24.

LINCOLN PHAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,103	5,806	13.8%
Other income	Rs m	225	344	53.2%
Total Revenues	Rs m	5,328	6,150	15.4%
Gross profit	Rs m	892	999	12.0%
Depreciation	Rs m	92	106	15.9%
Interest	Rs m	20	15	-27.8%
Profit before tax	Rs m	1,005	1,222	21.7%
Tax	Rs m	276	289	4.9%
Profit after tax	Rs m	729	933	28.0%
Gross profit margin	%	17.5	17.2
Effective tax rate	%	27.4	23.7
Net profit margin	%	14.3	16.1

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

LINCOLN PHAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 960 million in FY23, thereby witnessing an increase of 22.3%.
• Current assets rose 21% and stood at Rs 5 billion, while fixed assets rose 3% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 14%.

LINCOLN PHAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,025	5,928	18.0
Current Liabilities	Rs m	960	1,174	22.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,365	7,254	14.0
Current assets	Rs m	3,911	4,719	20.7
Fixed Assets	Rs m	2,454	2,536	3.3
Total Assets	Rs m	6,365	7,254	14.0

LINCOLN PHAR Cash Flow Statement Analysis

• LINCOLN PHAR's cash flow from operating activities (CFO) during FY24 stood at Rs 632 million, an improvement of 61.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -573 million, an improvement of 56.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -52 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 million from the Rs -19 million net cash flows seen during FY23.

LINCOLN PHAR 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	393	632	61.0%
Cash Flow from Investing Activities	Rs m	-366	-573	-
Cash Flow from Financing Activities	Rs m	-45	-52	-
Net Cash Flow	Rs m	-19	7	-

Current Valuations for LINCOLN PHAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.6, an improvement from the EPS of Rs 36.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 661.0, stands at 13.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 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	254.8	289.8
TTM Earnings per share	Rs	36.4	46.6
Diluted earnings per share	Rs	36.4	46.6
Price to Cash Flow	x	8.3	10.5
TTM P/E ratio	x	9.3	13.5
Price / Book Value ratio	x	1.3	1.8
Market Cap	Rs m	6,358	10,949
Dividends per share (Unadj.)	Rs	1.5	1.8

Ratio Analysis for LINCOLN PHAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.0x during FY24, from 4.1x 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 84.4x during FY24, from 50.5x 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 15.7% during FY24, from 14.5% 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 20.9% during FY24, from 20.4% 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 13.1% during FY24, from 11.8% 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	4.1	4.0
Debtors’ Days	Days	975	1,017
Interest coverage	x	50.5	84.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.8	13.1
Return on equity	%	14.5	15.7
Return on capital employed	%	20.4	20.9

To see how LINCOLN PHAR has performed over the last 5 years, please visit here.

LINCOLN PHAR Share Price Performance

Over the last one year, LINCOLN PHAR share price has moved up from Rs 497.6 to Rs 661.0, registering a gain of Rs 163.4 or around 32.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 44,562.7 (down 0.2%). Over the last one year it has moved up from 28,236.4 to 44,562.7, a gain of 16,326 points (up 57.8%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for LINCOLN PHAR and quarterly results for LINCOLN PHAR)