STRIDES PHARMA SCIENCE 2023-24 Annual Report Analysis

Mon, 9 Sep

STRIDES PHARMA SCIENCE 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.

STRIDES PHARMA SCIENCE Income Statement Analysis

• Operating income during the year rose 9.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 343.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY24 as against 2.2% in FY23.
• Depreciation charges decreased by 9.3% and finance costs increased by 20.4% YoY, respectively.
• Other income declined by 63.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 6.3% in FY23 to 3.7% in FY24.

STRIDES PHARMA SCIENCE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	36,884	40,511	9.8%
Other income	Rs m	1,352	498	-63.1%
Total Revenues	Rs m	38,236	41,010	7.3%
Gross profit	Rs m	830	3,683	343.9%
Depreciation	Rs m	2,433	2,207	-9.3%
Interest	Rs m	2,611	3,144	20.4%
Profit before tax	Rs m	-2,862	-1,169	NA
Tax	Rs m	-553	316	NA
Profit after tax	Rs m	-2,309	-1,485	NA
Gross profit margin	%	2.2	9.1
Effective tax rate	%	19.3	-27.0
Net profit margin	%	-6.3	-3.7

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STRIDES PHARMA SCIENCE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 29 billion as compared to Rs 30 billion in FY23, thereby witnessing an decrease of -3.7%.
• Long-term debt down at Rs 7 billion as compared to Rs 11 billion during FY23, a fall of 41.1%.
• Current assets fell 5% and stood at Rs 30 billion, while fixed assets fell 17% and stood at Rs 26 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 56 billion as against Rs 64 billion during FY23, thereby witnessing a fall of 13%.

STRIDES PHARMA SCIENCE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	21,928	21,225	-3.2
Current Liabilities	Rs m	29,902	28,793	-3.7
Long-term Debt	Rs m	11,398	6,715	-41.1
Total Liabilities	Rs m	63,734	55,724	-12.6
Current assets	Rs m	31,353	29,690	-5.3
Fixed Assets	Rs m	31,300	26,034	-16.8
Total Assets	Rs m	63,734	55,724	-12.6

STRIDES PHARMA SCIENCE Cash Flow Statement Analysis

• STRIDES PHARMA SCIENCE's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 1,478.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY23.

STRIDES PHARMA SCIENCE 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	444	7,011	1,478.6%
Cash Flow from Investing Activities	Rs m	3,025	-1,503	-
Cash Flow from Financing Activities	Rs m	-2,139	-6,933	-
Net Cash Flow	Rs m	1,328	-1,425	-

Current Valuations for STRIDES PHARMA SCIENCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -16.2, an improvement from the EPS of Rs -25.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,334.4, stands at 146.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 71.7 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	408.5	440.8
TTM Earnings per share	Rs	-25.6	-16.2
Diluted earnings per share	Rs	-25.1	-16.2
Price to Cash Flow	x	213.0	71.7
TTM P/E ratio	x	48.4	146.5
Price / Book Value ratio	x	1.4	2.4
Market Cap	Rs m	29,603	51,740
Dividends per share (Unadj.)	Rs	1.5	2.5

Ratio Analysis for STRIDES PHARMA SCIENCE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.0x 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 0.6x during FY24, from -0.1x 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 -7.0% during FY24, from -10.5% 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 7.1% during FY24, from -0.8% 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 0.5% 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	1.0	1.0
Debtors’ Days	Days	129	103
Interest coverage	x	-0.1	0.6
Debt to equity ratio	x	0.5	0.3
Return on assets	%	0.5	3.0
Return on equity	%	-10.5	-7.0
Return on capital employed	%	-0.8	7.1

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

STRIDES PHARMA SCIENCE Share Price Performance

Over the last one year, STRIDES PHARMA SCIENCE share price has moved up from Rs 481.1 to Rs 1,334.4, registering a gain of Rs 853.3 or around 177.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,429.4 (down 0.1%). Over the last one year it has moved up from 28,280.7 to 43,429.4, a gain of 15,149 points (up 53.6%).

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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