PIRAMAL PHARMA 2023-24 Annual Report Analysis

Thu, 4 Jul

PIRAMAL 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.

PIRAMAL PHARMA Income Statement Analysis

• Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 72.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.3% in FY24 as against 9.5% in FY23.
• Depreciation charges increased by 9.4% and finance costs increased by 30.3% YoY, respectively.
• Other income declined by 10.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.6% in FY23 to 0.2% in FY24.

PIRAMAL PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	70,816	81,712	15.4%
Other income	Rs m	2,251	2,011	-10.6%
Total Revenues	Rs m	73,067	83,723	14.6%
Gross profit	Rs m	6,756	11,672	72.8%
Depreciation	Rs m	6,767	7,406	9.4%
Interest	Rs m	3,442	4,485	30.3%
Profit before tax	Rs m	-1,202	1,793	NA
Tax	Rs m	663	1,615	143.5%
Profit after tax	Rs m	-1,865	178	NA
Gross profit margin	%	9.5	14.3
Effective tax rate	%	-55.2	90.1
Net profit margin	%	-2.6	0.2

Don't Miss: Key Information for Long-term Investors

PIRAMAL PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 45 billion as compared to Rs 39 billion in FY23, thereby witnessing an increase of 15.7%.
• Long-term debt down at Rs 25 billion as compared to Rs 34 billion during FY23, a fall of 26.6%.
• Current assets rose 15% and stood at Rs 56 billion, while fixed assets rose 2% and stood at Rs 97 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 153 billion as against Rs 144 billion during FY23, thereby witnessing a growth of 6%.

PIRAMAL PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	67,735	78,839	16.4
Current Liabilities	Rs m	38,510	44,571	15.7
Long-term Debt	Rs m	33,835	24,838	-26.6
Total Liabilities	Rs m	144,365	152,972	6.0
Current assets	Rs m	48,435	55,523	14.6
Fixed Assets	Rs m	95,931	97,450	1.6
Total Assets	Rs m	144,365	152,972	6.0

PIRAMAL PHARMA Cash Flow Statement Analysis

• PIRAMAL PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 107.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -320 million net cash flows seen during FY23.

PIRAMAL 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	4,839	10,045	107.6%
Cash Flow from Investing Activities	Rs m	-13,388	-4,340	-
Cash Flow from Financing Activities	Rs m	8,178	-4,224	-
Net Cash Flow	Rs m	-320	1,660	-

Current Valuations for PIRAMAL PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an improvement from the EPS of Rs -1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 159.3, stands at -506.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 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	59.3	61.8
TTM Earnings per share	Rs	-1.6	0.1
Diluted earnings per share	Rs	-1.4	0.1
Price to Cash Flow	x	18.5	19.0
TTM P/E ratio	x	-48.7	-506.7
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	158,073	144,036
Dividends per share (Unadj.)	Rs	0.0	0.1

Ratio Analysis for PIRAMAL PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 1.4x during FY24, from 0.7x 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 0.2% during FY24, from -2.8% 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 6.1% during FY24, from 2.2% 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 3.0% during FY24, from 1.1% 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	1.2
Debtors’ Days	Days	9	10
Interest coverage	x	0.7	1.4
Debt to equity ratio	x	0.5	0.3
Return on assets	%	1.1	3.0
Return on equity	%	-2.8	0.2
Return on capital employed	%	2.2	6.1

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

PIRAMAL PHARMA Share Price Performance

Over the last one year, PIRAMAL PHARMA share price has moved up from Rs 91.1 to Rs 159.3, registering a gain of Rs 68.1 or around 74.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 37,428.9 (up 0.7%). Over the last one year it has moved up from 25,703.5 to 37,428.9, a gain of 11,725 points (up 45.6%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

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