GENNEX LAB. 2023-24 Annual Report Analysis

Wed, 20 Nov

GENNEX LAB. 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.

GENNEX LAB. Income Statement Analysis

• Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 262.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.7% in FY24 as against 7.9% in FY23.
• Depreciation charges increased by 157.7% and finance costs increased by 127.2% YoY, respectively.
• Other income grew by 24.1% YoY.
• Net profit for the year grew by 167.7% YoY.
• Net profit margins during the year grew from 8.3% in FY23 to 17.5% in FY24.

GENNEX LAB. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	593	751	26.5%
Other income	Rs m	40	49	24.1%
Total Revenues	Rs m	633	800	26.4%
Gross profit	Rs m	47	170	262.9%
Depreciation	Rs m	9	24	157.7%
Interest	Rs m	14	31	127.2%
Profit before tax	Rs m	64	165	158.8%
Tax	Rs m	15	33	128.4%
Profit after tax	Rs m	49	132	167.7%
Gross profit margin	%	7.9	22.7
Effective tax rate	%	22.8	20.1
Net profit margin	%	8.3	17.5

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GENNEX LAB. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 403 million as compared to Rs 295 million in FY23, thereby witnessing an increase of 36.6%.
• Long-term debt down at Rs 132 million as compared to Rs 163 million during FY23, a fall of 18.9%.
• Current assets rose 232% and stood at Rs 2 billion, while fixed assets fell 19% and stood at Rs 679 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 74%.

GENNEX LAB. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	804	1,647	104.9
Current Liabilities	Rs m	295	403	36.6
Long-term Debt	Rs m	163	132	-18.9
Total Liabilities	Rs m	1,322	2,298	73.8
Current assets	Rs m	487	1,618	232.4
Fixed Assets	Rs m	835	679	-18.6
Total Assets	Rs m	1,322	2,298	73.8

GENNEX LAB. Cash Flow Statement Analysis

• GENNEX LAB.'s cash flow from operating activities (CFO) during FY24 stood at Rs -467 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 189 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 737 million, an improvement of 250% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 459 million from the Rs 64 million net cash flows seen during FY23.

GENNEX LAB. 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	237	-467	-
Cash Flow from Investing Activities	Rs m	-383	189	-
Cash Flow from Financing Activities	Rs m	210	737	250.3%
Net Cash Flow	Rs m	64	459	619.5%

Current Valuations for GENNEX LAB.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an improvement from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.2, stands at 29.2 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 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 20.1 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	3.4	3.3
TTM Earnings per share	Rs	0.3	0.6
Diluted earnings per share	Rs	0.2	0.6
Price to Cash Flow	x	21.8	20.1
TTM P/E ratio	x	25.9	29.2
Price / Book Value ratio	x	1.5	1.9
Market Cap	Rs m	1,229	3,117
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GENNEX LAB.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.0x during FY24, from 1.6x 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 6.4x during FY24, from 5.7x 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 8.0% during FY24, from 6.1% 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 11.0% during FY24, from 8.0% 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 7.1% during FY24, from 4.7% 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	1.6	4.0
Debtors’ Days	Days	57,912,589	86,571,348
Interest coverage	x	5.7	6.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.7	7.1
Return on equity	%	6.1	8.0
Return on capital employed	%	8.0	11.0

To see how GENNEX LAB. has performed over the last 5 years, please visit here.

GENNEX LAB. Share Price Performance

Over the last one year, GENNEX LAB. share price has moved up from Rs 15.2 to Rs 19.2, registering a gain of Rs 4.1 or around 26.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 42,400.1 (up 0.7%). Over the last one year it has moved up from 29,583.1 to 42,400.1, a gain of 12,817 points (up 43.3%).

Overall, the S&P BSE SENSEX is up 18.2% over the year.

(To know more, check out historical annual results for GENNEX LAB. and quarterly results for GENNEX LAB.)