NECTAR LIFESCIENCE 2023-24 Annual Report Analysis

Mon, 19 Aug

NECTAR LIFESCIENCE 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.

NECTAR LIFESCIENCE Income Statement Analysis

• Operating income during the year rose 10.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 185.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY24 as against 4.1% in FY23.
• Depreciation charges increased by 2.7% and finance costs increased by 8.4% YoY, respectively.
• Other income declined by 54.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.9% in FY23 to 0.3% in FY24.

NECTAR LIFESCIENCE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,008	14,423	10.9%
Other income	Rs m	531	243	-54.2%
Total Revenues	Rs m	13,538	14,667	8.3%
Gross profit	Rs m	530	1,516	185.9%
Depreciation	Rs m	591	607	2.7%
Interest	Rs m	894	969	8.4%
Profit before tax	Rs m	-424	183	NA
Tax	Rs m	-182	133	NA
Profit after tax	Rs m	-242	50	NA
Gross profit margin	%	4.1	10.5
Effective tax rate	%	43.0	72.7
Net profit margin	%	-1.9	0.3

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NECTAR LIFESCIENCE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 9.2%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 38.0%.
• Current assets rose 4% and stood at Rs 13 billion, while fixed assets fell 4% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 22 billion during FY23, thereby witnessing a growth of 1%.

NECTAR LIFESCIENCE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,646	10,692	0.4
Current Liabilities	Rs m	8,909	9,728	9.2
Long-term Debt	Rs m	2,265	1,403	-38.0
Total Liabilities	Rs m	21,686	21,836	0.7
Current assets	Rs m	12,312	12,838	4.3
Fixed Assets	Rs m	9,375	8,997	-4.0
Total Assets	Rs m	21,686	21,836	0.7

NECTAR LIFESCIENCE Cash Flow Statement Analysis

• NECTAR LIFESCIENCE's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 68.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -170 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 22 million from the Rs -2 million net cash flows seen during FY23.

NECTAR LIFESCIENCE 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	1,337	2,247	68.1%
Cash Flow from Investing Activities	Rs m	517	-170	-
Cash Flow from Financing Activities	Rs m	-1,856	-2,054	-
Net Cash Flow	Rs m	-2	22	-

Current Valuations for NECTAR LIFESCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an improvement from the EPS of Rs -1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.3, stands at 117.9 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 0.5 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	58.0	64.3
TTM Earnings per share	Rs	-1.1	0.2
Diluted earnings per share	Rs	-1.1	0.2
Price to Cash Flow	x	10.2	10.5
TTM P/E ratio	x	-14.7	117.9
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	5,434	6,902
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for NECTAR LIFESCIENCE

• 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 1.2x during FY24, from 0.5x 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 0.5% during FY24, from -2.3% 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 9.5% during FY24, from 3.6% 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 4.7% during FY24, from 3.0% 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	1.4	1.3
Debtors’ Days	Days	78	96
Interest coverage	x	0.5	1.2
Debt to equity ratio	x	0.2	0.1
Return on assets	%	3.0	4.7
Return on equity	%	-2.3	0.5
Return on capital employed	%	3.6	9.5

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

NECTAR LIFESCIENCE Share Price Performance

Over the last one year, NECTAR LIFESCIENCE share price has moved up from Rs 24.0 to Rs 32.3, registering a gain of Rs 8.3 or around 34.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 41,441.9 (up 0.7%). Over the last one year it has moved up from 27,801.3 to 41,441.9, a gain of 13,641 points (up 49.1%).

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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