LYKA LABS 2023-24 Annual Report Analysis

Wed, 24 Jul

LYKA LABS 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.

LYKA LABS Income Statement Analysis

• Operating income during the year rose 19.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 62.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY24 as against 10.1% in FY23.
• Depreciation charges decreased by 9.5% and finance costs decreased by 58.8% YoY, respectively.
• Other income declined by 57.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 14.1% in FY23 to 2.4% in FY24.

LYKA LABS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	931	1,112	19.5%
Other income	Rs m	34	15	-57.2%
Total Revenues	Rs m	965	1,126	16.8%
Gross profit	Rs m	94	153	62.0%
Depreciation	Rs m	141	128	-9.5%
Interest	Rs m	119	49	-58.8%
Profit before tax	Rs m	-132	-9	NA
Tax	Rs m	0	17	NA
Profit after tax	Rs m	-132	-26	NA
Gross profit margin	%	10.1	13.8
Effective tax rate	%	0.1	-180.6
Net profit margin	%	-14.1	-2.4

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LYKA LABS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 376 million as compared to Rs 326 million in FY23, thereby witnessing an increase of 15.5%.
• Long-term debt down at Rs 429 million as compared to Rs 638 million during FY23, a fall of 32.7%.
• Current assets rose 15% and stood at Rs 507 million, while fixed assets fell 1% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 3%.

LYKA LABS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	280	591	111.0
Current Liabilities	Rs m	326	376	15.5
Long-term Debt	Rs m	638	429	-32.7
Total Liabilities	Rs m	1,515	1,567	3.4
Current assets	Rs m	442	507	14.6
Fixed Assets	Rs m	1,073	1,061	-1.2
Total Assets	Rs m	1,515	1,567	3.4

LYKA LABS Cash Flow Statement Analysis

• LYKA LABS's cash flow from operating activities (CFO) during FY24 stood at Rs 18 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -95 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 20 million, an improvement of 109% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -58 million from the Rs -53 million net cash flows seen during FY23.

LYKA LABS 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	90	18	-80.2%
Cash Flow from Investing Activities	Rs m	74	-95	-
Cash Flow from Financing Activities	Rs m	-216	20	-
Net Cash Flow	Rs m	-53	-58	-

Current Valuations for LYKA LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.8, an improvement from the EPS of Rs -4.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 117.1, stands at -159.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 37.8 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	30.3	33.6
TTM Earnings per share	Rs	-4.3	-0.8
Diluted earnings per share	Rs	-3.7	-0.7
Price to Cash Flow	x	375.6	37.8
TTM P/E ratio	x	-28.4	-159.5
Price / Book Value ratio	x	16.5	6.5
Market Cap	Rs m	4,634	3,847
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LYKA LABS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.4x 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 0.8x during FY24, from -0.1x 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 -4.4% during FY24, from -47.0% 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 3.9% during FY24, from -1.4% 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 1.4% during FY24, from -0.8% 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	1.4	1.3
Debtors’ Days	Days	789	886
Interest coverage	x	-0.1	0.8
Debt to equity ratio	x	2.3	0.7
Return on assets	%	-0.8	1.4
Return on equity	%	-47.0	-4.4
Return on capital employed	%	-1.4	3.9

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

LYKA LABS Share Price Performance

Over the last one year, LYKA LABS share price has moved up from Rs 107.3 to Rs 117.1, registering a gain of Rs 9.8 or around 9.1%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,966.7 (up 0.6%). Over the last one year it has moved up from 26,789.0 to 38,966.7, a gain of 12,178 points (up 45.5%).

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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