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DR. REDDYS LAB 2023-24 Annual Report Analysis
Thu, 4 Jul

DR. REDDYS 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.

DR. REDDYS LAB Income Statement Analysis

  • Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 24.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.4% in FY24 as against 25.9% in FY23.
  • Depreciation charges increased by 17.6% and finance costs increased by 19.8% YoY, respectively.
  • Other income declined by 15.3% YoY.
  • Net profit for the year grew by 23.8% YoY.
  • Net profit margins during the year grew from 18.3% in FY23 to 19.9% in FY24.

DR. REDDYS LAB Income Statement 2023-24

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change
Net Sales Rs m 246,697 280,111 13.5%
Other income Rs m 10,555 8,943 -15.3%
Total Revenues Rs m 257,252 289,054 12.4%
Gross profit Rs m 63,860 79,478 24.5%
Depreciation Rs m 12,502 14,700 17.6%
Interest Rs m 1,428 1,711 19.8%
Profit before tax Rs m 60,485 72,010 19.1%
Tax Rs m 15,412 16,231 5.3%
Profit after tax Rs m 45,073 55,779 23.8%
Gross profit margin % 25.9 28.4
Effective tax rate % 25.5 22.5
Net profit margin % 18.3 19.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

DR. REDDYS LAB Balance Sheet Analysis

  • The company's current liabilities during FY24 stood at Rs 96 billion as compared to Rs 86 billion in FY23, thereby witnessing an increase of 11.9%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 1 billion during FY23, a growth of 368.7%.
  • Current assets rose 22% and stood at Rs 248 billion, while fixed assets rose 16% and stood at Rs 130 billion in FY24.
  • Overall, the total assets and liabilities for FY24 stood at Rs 378 billion as against Rs 316 billion during FY23, thereby witnessing a growth of 20%.

DR. REDDYS LAB Balance Sheet as on March 2024

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change
Networth Rs m 231,404 281,235 21.5
 
Current Liabilities Rs m 85,721 95,880 11.9
Long-term Debt Rs m 1,278 5,990 368.7
Total Liabilities Rs m 315,799 378,060 19.7
 
Current assets Rs m 203,161 247,886 22.0
Fixed Assets Rs m 112,638 130,174 15.6
Total Assets Rs m 315,799 378,060 19.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



DR. REDDYS LAB Cash Flow Statement Analysis

  • DR. REDDYS LAB's cash flow from operating activities (CFO) during FY24 stood at Rs 45 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY24 stood at Rs -40 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion, an improvement of 86% on a YoY basis.
  • Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -9 billion net cash flows seen during FY23.

DR. REDDYS 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 58,875 45,433 -22.8%
Cash Flow from Investing Activities Rs m -41,373 -40,283 -
Cash Flow from Financing Activities Rs m -26,861 -3,763 -
Net Cash Flow Rs m -9,073 1,328 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for DR. REDDYS LAB

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 334.4, an improvement from the EPS of Rs 270.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 6,428.1, stands at 19.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 3.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 12.9 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 1,481.4 1,679.1
TTM Earnings per share Rs 270.7 334.4
Diluted earnings per share Rs 270.2 334.3
Price to Cash Flow x 13.4 12.9
TTM P/E ratio x 17.2 19.3
Price / Book Value ratio x 3.0 3.2
Market Cap Rs m 703,039 908,234
Dividends per share (Unadj.) Rs 40.0 40.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for DR. REDDYS LAB

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 2.4x 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 43.1x during FY24, from 43.4x 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 19.8% during FY24, from 19.5% 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 declined and down at 25.7% during FY24, from 26.6% 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 15.2% during FY24, from 14.7% 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 2.4 2.6
Debtors’ Days Days 107 105
Interest coverage x 43.4 43.1
Debt to equity ratio x 0.0 0.0
Return on assets % 14.7 15.2
Return on equity % 19.5 19.8
Return on capital employed % 26.6 25.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

DR. REDDYS LAB Share Price Performance

Over the last one year, DR. REDDYS LAB share price has moved up from Rs 5,189.6 to Rs 6,428.1, registering a gain of Rs 1,238.5 or around 23.9%.

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 DR. REDDYS LAB and quarterly results for DR. REDDYS LAB)

Annual Report FAQs

What is the current share price of DR. REDDYS LAB?

DR. REDDYS LAB currently trades at Rs 1,211.9 per share. You can check out the latest share price performance of DR. REDDYS LAB here...

What was the revenue of DR. REDDYS LAB in FY24? How does it compare to earlier years?

The revenues of DR. REDDYS LAB stood at Rs 289,054 m in FY24, which was up 12.4% compared to Rs 257,252 m reported in FY23.

DR. REDDYS LAB's revenue has grown from Rs 181,376 m in FY20 to Rs 289,054 m in FY24.

Over the past 5 years, the revenue of DR. REDDYS LAB has grown at a CAGR of 12.4%.

What was the net profit of DR. REDDYS LAB in FY24? How does it compare to earlier years?

The net profit of DR. REDDYS LAB stood at Rs 55,779 m in FY24, which was up 23.8% compared to Rs 45,073 m reported in FY23.

This compares to a net profit of Rs 21,825 m in FY22 and a net profit of Rs 19,516 m in FY21.

Over the past 5 years, DR. REDDYS LAB net profit has grown at a CAGR of 28.8%.

What does the cash flow statement of DR. REDDYS LAB reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of DR. REDDYS LAB reveals:

  • Cash flow from operations decreased in FY24 and stood at Rs 45,433 m as compared to Rs 58,875 m in FY23.
  • Cash flow from investments increased in FY24 and stood at Rs -40,283 m as compared to Rs -41,373 m in FY23.
  • Cash flow from financial activity increased in FY24 and stood at Rs -3,763 m as compared to Rs -26,861 m in FY23.

Here's the cash flow statement of DR. REDDYS LAB for the past 5 years.

(Rs m)FY20FY21FY22FY23FY24
From Operations29,84135,70328,10858,87545,433
From Investments-4,923-22,660-26,387-41,373-40,283
From Financial Activity-25,159-298-2,422-26,861-3,763
Net Cashflow-26612,85832-9,0731,328

What does the Key Ratio analysis of DR. REDDYS LAB reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of DR. REDDYS LAB reveals:

  • Operating profit margins witnessed a fall and down at 28.4% in FY24 as against 25.9% in FY23.
  • Net profit margins grew from 18.3% in FY23 to 19.9% in FY24.
  • Debt to Equity ratio for FY24 stood at 0.0 as compared to 0.0 in FY23.

Here's the ratio/financial analysis of DR. REDDYS LAB for the past 5 years.

 FY20FY21FY22FY23FY24
Operating Profit Margin (%)14.420.617.825.928.4
Net Profit Margin (%)11.610.210.118.319.9
Debt to Equity Ratio (x)0.00.00.00.00.0

 

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