NATH BIO GENES 2023-24 Annual Report Analysis

Mon, 29 Jul

NATH BIO GENES 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.

NATH BIO GENES Income Statement Analysis

• Operating income during the year rose 10.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.1% in FY24 as against 16.3% in FY23.
• Depreciation charges increased by 8.3% and finance costs decreased by 11.1% YoY, respectively.
• Other income grew by 13.2% YoY.
• Net profit for the year grew by 13.2% YoY.
• Net profit margins during the year grew from 11.6% in FY23 to 11.9% in FY24.

NATH BIO GENES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,014	3,326	10.4%
Other income	Rs m	6	6	13.2%
Total Revenues	Rs m	3,019	3,333	10.4%
Gross profit	Rs m	490	534	9.0%
Depreciation	Rs m	30	33	8.3%
Interest	Rs m	104	92	-11.1%
Profit before tax	Rs m	362	416	14.9%
Tax	Rs m	12	19	68.8%
Profit after tax	Rs m	350	396	13.2%
Gross profit margin	%	16.3	16.1
Effective tax rate	%	3.2	4.7
Net profit margin	%	11.6	11.9

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NATH BIO GENES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 21.3%.
• Long-term debt stood at Rs 49 million as compared to Rs 4 million during FY23, a growth of 1107.2%.
• Current assets rose 10% and stood at Rs 6 billion, while fixed assets rose 13% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 11%.

NATH BIO GENES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,732	6,099	6.4
Current Liabilities	Rs m	2,164	2,624	21.3
Long-term Debt	Rs m	4	49	1,107.2
Total Liabilities	Rs m	7,928	8,802	11.0
Current assets	Rs m	5,198	5,717	10.0
Fixed Assets	Rs m	2,730	3,086	13.0
Total Assets	Rs m	7,928	8,802	11.0

NATH BIO GENES Cash Flow Statement Analysis

• NATH BIO GENES's cash flow from operating activities (CFO) during FY24 stood at Rs 746 million, an improvement of 94.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -274 million, an improvement of 850.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -78 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 394 million from the Rs 338 million net cash flows seen during FY23.

NATH BIO GENES 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	384	746	94.4%
Cash Flow from Investing Activities	Rs m	-29	-274	-
Cash Flow from Financing Activities	Rs m	-17	-78	-
Net Cash Flow	Rs m	338	394	16.6%

Current Valuations for NATH BIO GENES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.9, an improvement from the EPS of Rs 18.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 237.3, stands at 11.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 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	158.6	175.1
TTM Earnings per share	Rs	18.4	20.9
Diluted earnings per share	Rs	18.4	20.8
Price to Cash Flow	x	7.1	8.6
TTM P/E ratio	x	7.7	11.1
Price / Book Value ratio	x	0.6	0.6
Market Cap	Rs m	3,707	3,669
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for NATH BIO GENES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY24, from 2.4x 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 5.5x during FY24, from 4.5x 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 6.5% during FY24, from 6.1% 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 8.3% during FY24, from 8.1% 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 5.5% during FY24, from 5.7% 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	2.4	2.2
Debtors’ Days	Days	1,179	1,035
Interest coverage	x	4.5	5.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.7	5.5
Return on equity	%	6.1	6.5
Return on capital employed	%	8.1	8.3

To see how NATH BIO GENES has performed over the last 5 years, please visit here.

NATH BIO GENES Share Price Performance

Over the last one year, NATH BIO GENES share price has moved up from Rs 207.5 to Rs 237.3, registering a gain of Rs 29.8 or around 14.4%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for NATH BIO GENES and quarterly results for NATH BIO GENES)