LUPIN 2023-24 Annual Report Analysis

Thu, 11 Jul

LUPIN 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.

LUPIN Income Statement Analysis

• Operating income during the year rose 20.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 120.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.9% in FY24 as against 10.3% in FY23.
• Depreciation charges increased by 35.9% and finance costs increased by 13.6% YoY, respectively.
• Other income declined by 6.2% YoY.
• Net profit for the year grew by 332.3% YoY.
• Net profit margins during the year grew from 2.7% in FY23 to 9.7% in FY24.

LUPIN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	166,417	200,108	20.2%
Other income	Rs m	1,509	1,416	-6.2%
Total Revenues	Rs m	167,926	201,524	20.0%
Gross profit	Rs m	17,206	37,891	120.2%
Depreciation	Rs m	8,807	11,968	35.9%
Interest	Rs m	2,743	3,116	13.6%
Profit before tax	Rs m	7,165	24,223	238.1%
Tax	Rs m	2,688	4,867	81.1%
Profit after tax	Rs m	4,477	19,356	332.3%
Gross profit margin	%	10.3	18.9
Effective tax rate	%	37.5	20.1
Net profit margin	%	2.7	9.7

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LUPIN Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 85 billion as compared to Rs 93 billion in FY23, thereby witnessing an decrease of -8.2%.
• Current assets rose 8% and stood at Rs 134 billion, while fixed assets fell 1% and stood at Rs 102 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 237 billion as against Rs 228 billion during FY23, thereby witnessing a growth of 4%.

LUPIN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	123,156	141,758	15.1
Current Liabilities	Rs m	92,654	85,015	-8.2
Long-term Debt	Rs m	275	0	-100.0
Total Liabilities	Rs m	228,003	236,947	3.9
Current assets	Rs m	124,513	134,477	8.0
Fixed Assets	Rs m	103,490	102,470	-1.0
Total Assets	Rs m	228,003	236,947	3.9

LUPIN Cash Flow Statement Analysis

• LUPIN's cash flow from operating activities (CFO) during FY24 stood at Rs 36 billion, an improvement of 92.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -17 billion, an improvement of 33.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -22 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 3 billion net cash flows seen during FY23.

LUPIN 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	18,972	36,484	92.3%
Cash Flow from Investing Activities	Rs m	-12,868	-17,122	-
Cash Flow from Financing Activities	Rs m	-3,373	-21,842	-
Net Cash Flow	Rs m	2,732	-2,481	-

Current Valuations for LUPIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.5, an improvement from the EPS of Rs 9.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,812.9, stands at 42.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 17.1 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	366.2	439.8
TTM Earnings per share	Rs	9.9	42.5
Diluted earnings per share	Rs	9.8	42.5
Price to Cash Flow	x	22.2	17.1
TTM P/E ratio	x	66.0	42.7
Price / Book Value ratio	x	2.5	3.8
Market Cap	Rs m	314,031	534,250
Dividends per share (Unadj.)	Rs	4.0	8.0

Ratio Analysis for LUPIN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.3x 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 8.8x during FY24, from 3.6x 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 13.7% during FY24, from 3.6% 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 19.3% during FY24, from 8.0% 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 9.5% during FY24, from 3.2% 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	1.3	1.6
Debtors’ Days	Days	98	86
Interest coverage	x	3.6	8.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.2	9.5
Return on equity	%	3.6	13.7
Return on capital employed	%	8.0	19.3

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

LUPIN Share Price Performance

Over the last one year, LUPIN share price has moved up from Rs 912.9 to Rs 1,812.9, registering a gain of Rs 900.0 or around 98.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,387.2 (down 0.5%). Over the last one year it has moved up from 26,215.4 to 38,387.2, a gain of 12,172 points (up 46.4%).

Overall, the S&P BSE SENSEX is up 22.1% over the year.

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