PANACEA BIOTECH 2023-24 Annual Report Analysis

Wed, 23 Oct

PANACEA BIOTECH 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.

PANACEA BIOTECH Income Statement Analysis

• Operating income during the year rose 21.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 239.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.9% in FY24 as against 1.0% in FY23.
• Depreciation charges decreased by 6.2% and finance costs decreased by 19.3% YoY, respectively.
• Other income declined by 50.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 7.3% in FY23 to 0.3% in FY24.

PANACEA BIOTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,599	5,592	21.6%
Other income	Rs m	517	258	-50.1%
Total Revenues	Rs m	5,116	5,850	14.3%
Gross profit	Rs m	47	160	239.7%
Depreciation	Rs m	391	367	-6.2%
Interest	Rs m	44	36	-19.3%
Profit before tax	Rs m	128	15	-88.5%
Tax	Rs m	466	30	-93.6%
Profit after tax	Rs m	-337	-15	NA
Gross profit margin	%	1.0	2.9
Effective tax rate	%	363.5	201.9
Net profit margin	%	-7.3	-0.3

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PANACEA BIOTECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -6.3%.
• Long-term debt stood at Rs 210 million as compared to Rs 202 million during FY23, a growth of 4.1%.
• Current assets fell 14% and stood at Rs 5 billion, while fixed assets rose 6% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 14 billion during FY23, thereby witnessing a fall of 2%.

PANACEA BIOTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,436	8,420	-0.2
Current Liabilities	Rs m	3,297	3,088	-6.3
Long-term Debt	Rs m	202	210	4.1
Total Liabilities	Rs m	14,426	14,121	-2.1
Current assets	Rs m	5,623	4,852	-13.7
Fixed Assets	Rs m	8,743	9,270	6.0
Total Assets	Rs m	14,426	14,121	-2.1

PANACEA BIOTECH Cash Flow Statement Analysis

• PANACEA BIOTECH's cash flow from operating activities (CFO) during FY24 stood at Rs -1 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 102 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -28 million, an improvement of 85% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 73 million from the Rs -105 million net cash flows seen during FY23.

PANACEA BIOTECH 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	-4,225	-1	-
Cash Flow from Investing Activities	Rs m	4,303	102	-97.6%
Cash Flow from Financing Activities	Rs m	-184	-28	-
Net Cash Flow	Rs m	-105	73	-

Current Valuations for PANACEA BIOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.2, an improvement from the EPS of Rs -5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 298.0, stands at -64.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 27.0 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	75.1	91.3
TTM Earnings per share	Rs	-5.5	-0.2
Diluted earnings per share	Rs	-5.5	-0.2
Price to Cash Flow	x	123.4	27.0
TTM P/E ratio	x	-19.7	-64.3
Price / Book Value ratio	x	1.1	1.1
Market Cap	Rs m	9,142	9,523
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for PANACEA BIOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 1.7x 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 deteriorated and stood at 1.4x during FY24, from 3.9x 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 -0.2% during FY24, from -4.0% 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 0.6% during FY24, from 2.0% 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 0.1% during FY24, from -2.0% 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	1.7	1.6
Debtors’ Days	Days	48	37
Interest coverage	x	3.9	1.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-2.0	0.1
Return on equity	%	-4.0	-0.2
Return on capital employed	%	2.0	0.6

To see how PANACEA BIOTECH has performed over the last 5 years, please visit here.

PANACEA BIOTECH Share Price Performance

Over the last one year, PANACEA BIOTECH share price has moved up from Rs 147.6 to Rs 298.0, registering a gain of Rs 150.4 or around 101.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 42,986.1 (down 0.2%). Over the last one year it has moved up from 27,503.7 to 42,986.1, a gain of 15,482 points (up 56.3%).

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for PANACEA BIOTECH and quarterly results for PANACEA BIOTECH)