ROSSARI BIOTECH 2023-24 Annual Report Analysis

Mon, 5 Aug

ROSSARI 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.

ROSSARI BIOTECH Income Statement Analysis

• Operating income during the year rose 10.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.3% in FY24 as against 13.0% in FY23.
• Depreciation charges decreased by 4.0% and finance costs decreased by 13.2% YoY, respectively.
• Other income grew by 1.3% YoY.
• Net profit for the year grew by 21.8% YoY.
• Net profit margins during the year grew from 6.5% in FY23 to 7.1% in FY24.

ROSSARI BIOTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,559	18,306	10.5%
Other income	Rs m	139	141	1.3%
Total Revenues	Rs m	16,698	18,447	10.5%
Gross profit	Rs m	2,155	2,433	12.9%
Depreciation	Rs m	629	604	-4.0%
Interest	Rs m	223	194	-13.2%
Profit before tax	Rs m	1,442	1,776	23.2%
Tax	Rs m	370	469	27.0%
Profit after tax	Rs m	1,073	1,307	21.8%
Gross profit margin	%	13.0	13.3
Effective tax rate	%	25.6	26.4
Net profit margin	%	6.5	7.1

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ROSSARI BIOTECH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 22.8%.
• Long-term debt down at Rs 333 million as compared to Rs 349 million during FY23, a fall of 4.6%.
• Current assets rose 18% and stood at Rs 10 billion, while fixed assets rose 13% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 16%.

ROSSARI BIOTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,117	10,442	14.5
Current Liabilities	Rs m	4,757	5,839	22.8
Long-term Debt	Rs m	349	333	-4.6
Total Liabilities	Rs m	15,717	18,246	16.1
Current assets	Rs m	8,474	10,028	18.3
Fixed Assets	Rs m	7,231	8,206	13.5
Total Assets	Rs m	15,717	18,246	16.1

ROSSARI BIOTECH Cash Flow Statement Analysis

• ROSSARI BIOTECH's cash flow from operating activities (CFO) during FY24 stood at Rs 433 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 162 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -440 million from the Rs 317 million net cash flows seen during FY23.

ROSSARI 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	1,516	433	-71.5%
Cash Flow from Investing Activities	Rs m	-1,809	-1,032	-
Cash Flow from Financing Activities	Rs m	609	162	-73.4%
Net Cash Flow	Rs m	317	-440	-

Current Valuations for ROSSARI BIOTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.7, an improvement from the EPS of Rs 19.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 903.3, stands at 36.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 21.7 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	300.2	331.3
TTM Earnings per share	Rs	19.4	23.7
Diluted earnings per share	Rs	19.4	23.6
Price to Cash Flow	x	19.3	21.7
TTM P/E ratio	x	31.0	36.7
Price / Book Value ratio	x	4.8	4.0
Market Cap	Rs m	43,769	41,407
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for ROSSARI BIOTECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 1.8x 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 10.2x during FY24, from 7.5x 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 12.5% during FY24, from 11.8% 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 18.3% during FY24, from 17.6% 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 declined and down at 8.2% during FY24, from 8.2% 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	1.8	1.7
Debtors’ Days	Days	78	85
Interest coverage	x	7.5	10.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	8.2
Return on equity	%	11.8	12.5
Return on capital employed	%	17.6	18.3

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

ROSSARI BIOTECH Share Price Performance

Over the last one year, ROSSARI BIOTECH share price has moved up from Rs 839.1 to Rs 903.3, registering a gain of Rs 64.3 or around 7.7%.

Overall, the S&P BSE SENSEX is up 18.5% over the year.

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