ORCHID PHARMA 2023-24 Annual Report Analysis

Wed, 31 Jul

ORCHID PHARMA 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.

ORCHID PHARMA Income Statement Analysis

• Operating income during the year rose 23.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.5% in FY24 as against 18.5% in FY23.
• Depreciation charges decreased by 39.3% and finance costs decreased by 49.1% YoY, respectively.
• Other income grew by 60.2% YoY.
• Net profit for the year grew by 72.1% YoY.
• Net profit margins during the year grew from 8.3% in FY23 to 11.6% in FY24.

ORCHID PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,659	8,194	23.0%
Other income	Rs m	194	311	60.2%
Total Revenues	Rs m	6,853	8,505	24.1%
Gross profit	Rs m	1,235	1,108	-10.3%
Depreciation	Rs m	548	332	-39.3%
Interest	Rs m	329	167	-49.1%
Profit before tax	Rs m	552	919	66.4%
Tax	Rs m	0	-31	0.0
Profit after tax	Rs m	552	951	72.1%
Gross profit margin	%	18.5	13.5
Effective tax rate	%	0.0	-3.4
Net profit margin	%	8.3	11.6

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ORCHID PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -30.1%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 19.1%.
• Current assets rose 58% and stood at Rs 8 billion, while fixed assets rose 5% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 27%.

ORCHID PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,886	11,695	69.8
Current Liabilities	Rs m	3,719	2,600	-30.1
Long-term Debt	Rs m	1,488	1,204	-19.1
Total Liabilities	Rs m	12,252	15,539	26.8
Current assets	Rs m	5,010	7,908	57.8
Fixed Assets	Rs m	7,242	7,631	5.4
Total Assets	Rs m	12,252	15,539	26.8

ORCHID PHARMA Cash Flow Statement Analysis

• ORCHID PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 587.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 899.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 436% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -190 million from the Rs 183 million net cash flows seen during FY23.

ORCHID PHARMA 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	183	1,260	587.1%
Cash Flow from Investing Activities	Rs m	-312	-3,120	-
Cash Flow from Financing Activities	Rs m	312	1,670	436.0%
Net Cash Flow	Rs m	183	-190	-

Current Valuations for ORCHID PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.7, an improvement from the EPS of Rs 13.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,380.0, stands at 74.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 8.5 times.
• The company's price to cash flow (P/CF) ratio stood at 34.2 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	163.1	161.5
TTM Earnings per share	Rs	13.5	18.7
Diluted earnings per share	Rs	10.9	18.7
Price to Cash Flow	x	17.7	34.2
TTM P/E ratio	x	35.3	74.1
Price / Book Value ratio	x	2.1	3.8
Market Cap	Rs m	14,522	43,872
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ORCHID PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x 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 6.5x during FY24, from 2.7x 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 8.1% during FY24, from 8.0% 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 declined and down at 8.4% during FY24, from 10.5% 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 7.2% during FY24, from 7.2% 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	3.0
Debtors’ Days	Days	1,180	871
Interest coverage	x	2.7	6.5
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.2	7.2
Return on equity	%	8.0	8.1
Return on capital employed	%	10.5	8.4

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

ORCHID PHARMA Share Price Performance

Over the last one year, ORCHID PHARMA share price has moved up from Rs 576.0 to Rs 1,380.0, registering a gain of Rs 804.1 or around 139.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,507.8 (up 0.9%). Over the last one year it has moved up from 27,736.5 to 40,507.8, a gain of 12,771 points (up 46.0%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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