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MEDICO REMEDIES 2023-24 Annual Report Analysis

Tue, 29 Oct

MEDICO REMEDIES 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.

MEDICO REMEDIES Income Statement Analysis

• Operating income during the year rose 3.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.9% in FY24 as against 6.8% in FY23.
• Depreciation charges increased by 5.8% and finance costs increased by 10.3% YoY, respectively.
• Other income declined by 47.9% YoY.
• Net profit for the year grew by 14.5% YoY.
• Net profit margins during the year grew from 5.2% in FY23 to 5.7% in FY24.

MEDICO REMEDIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,404	1,449	3.2%
Other income	Rs m	41	21	-47.9%
Total Revenues	Rs m	1,445	1,470	1.7%
Gross profit	Rs m	95	129	36.2%
Depreciation	Rs m	27	29	5.8%
Interest	Rs m	7	8	10.3%
Profit before tax	Rs m	101	113	12.2%
Tax	Rs m	29	30	6.5%
Profit after tax	Rs m	72	83	14.5%
Gross profit margin	%	6.8	8.9
Effective tax rate	%	28.3	26.9
Net profit margin	%	5.2	5.7

For Investors: Our Big Prediction

MEDICO REMEDIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 446 million as compared to Rs 432 million in FY23, thereby witnessing an increase of 3.3%.
• Long-term debt down at Rs 2 million as compared to Rs 2 million during FY23, a fall of 0.0%.
• Current assets rose 15% and stood at Rs 758 million, while fixed assets fell 2% and stood at Rs 224 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 982 million as against Rs 891 million during FY23, thereby witnessing a growth of 10%.

MEDICO REMEDIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	438	524	19.5
Current Liabilities	Rs m	432	446	3.3
Long-term Debt	Rs m	2	2	0.0
Total Liabilities	Rs m	891	982	10.3
Current assets	Rs m	662	758	14.5
Fixed Assets	Rs m	229	224	-2.1
Total Assets	Rs m	891	982	10.3

MEDICO REMEDIES Cash Flow Statement Analysis

• MEDICO REMEDIES 's cash flow from operating activities (CFO) during FY24 stood at Rs 24 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -27 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 million, an improvement of 73% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -7 million from the Rs -3 million net cash flows seen during FY23.

MEDICO REMEDIES 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	82	24	-70.1%
Cash Flow from Investing Activities	Rs m	-66	-27	-
Cash Flow from Financing Activities	Rs m	-18	-5	-
Net Cash Flow	Rs m	-3	-7	-

Current Valuations for MEDICO REMEDIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an improvement from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.2, stands at 52.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 54.1 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	16.9	17.5
TTM Earnings per share	Rs	0.9	1.0
Diluted earnings per share	Rs	0.9	1.0
Price to Cash Flow	x	62.2	54.1
TTM P/E ratio	x	85.6	52.6
Price / Book Value ratio	x	9.7	11.5
Market Cap	Rs m	4,272	6,047
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MEDICO REMEDIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.5x 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 14.8x during FY24, from 14.5x 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 declined and down at 15.8% during FY24, from 16.5% 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 declined and down at 23.1% during FY24, from 24.6% 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 improved and stood at 9.3% during FY24, from 9.0% 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	1.5	1.7
Debtors’ Days	Days	938	1,250
Interest coverage	x	14.5	14.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.0	9.3
Return on equity	%	16.5	15.8
Return on capital employed	%	24.6	23.1

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

MEDICO REMEDIES Share Price Performance

Over the last one year, MEDICO REMEDIES share price has moved down from Rs 72.1 to Rs 54.2, registering a loss of Rs 17.9 or around 24.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,610.9 (up 0.4%). Over the last one year it has moved up from 27,279.7 to 43,610.9, a gain of 16,331 points (up 59.9%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

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