RPG LIFE SCIENCES 2023-24 Annual Report Analysis

Thu, 27 Jun

RPG LIFE SCIENCES 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.

RPG LIFE SCIENCES 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 24.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.2% in FY24 as against 20.2% in FY23.
• Depreciation charges increased by 10.1% and finance costs increased by 25.2% YoY, respectively.
• Other income grew by 50.2% YoY.
• Net profit for the year grew by 29.6% YoY.
• Net profit margins during the year grew from 13.2% in FY23 to 15.1% in FY24.

RPG LIFE SCIENCES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,128	5,821	13.5%
Other income	Rs m	48	72	50.2%
Total Revenues	Rs m	5,176	5,893	13.8%
Gross profit	Rs m	1,035	1,291	24.7%
Depreciation	Rs m	155	171	10.1%
Interest	Rs m	12	14	25.2%
Profit before tax	Rs m	917	1,178	28.5%
Tax	Rs m	240	302	25.5%
Profit after tax	Rs m	676	877	29.6%
Gross profit margin	%	20.2	22.2
Effective tax rate	%	26.2	25.6
Net profit margin	%	13.2	15.1

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

RPG LIFE SCIENCES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 27.4%.
• Current assets rose 13% and stood at Rs 3 billion, while fixed assets rose 38% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 22%.

RPG LIFE SCIENCES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,076	3,749	21.9
Current Liabilities	Rs m	1,028	1,310	27.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,194	5,123	22.2
Current assets	Rs m	2,641	2,981	12.9
Fixed Assets	Rs m	1,553	2,142	37.9
Total Assets	Rs m	4,194	5,123	22.2

RPG LIFE SCIENCES Cash Flow Statement Analysis

• RPG LIFE SCIENCES's cash flow from operating activities (CFO) during FY24 stood at Rs 944 million, an improvement of 3.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -792 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -203 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -51 million from the Rs -321 million net cash flows seen during FY23.

RPG LIFE SCIENCES 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	908	944	3.9%
Cash Flow from Investing Activities	Rs m	-1,058	-792	-
Cash Flow from Financing Activities	Rs m	-171	-203	-
Net Cash Flow	Rs m	-321	-51	-

Current Valuations for RPG LIFE SCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 53.0, an improvement from the EPS of Rs 40.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,650.0, stands at 31.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 19.3 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	310.0	351.9
TTM Earnings per share	Rs	40.9	53.0
Diluted earnings per share	Rs	40.9	53.0
Price to Cash Flow	x	13.8	19.3
TTM P/E ratio	x	17.0	31.1
Price / Book Value ratio	x	3.9	5.4
Market Cap	Rs m	12,109	20,176
Dividends per share (Unadj.)	Rs	12.0	16.0

Ratio Analysis for RPG LIFE SCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.6x 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 82.8x during FY24, from 80.7x 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 23.4% during FY24, from 22.0% 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 31.8% during FY24, from 30.2% 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 17.4% during FY24, from 16.4% 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	2.6	2.3
Debtors’ Days	Days	266	308
Interest coverage	x	80.7	82.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.4	17.4
Return on equity	%	22.0	23.4
Return on capital employed	%	30.2	31.8

To see how RPG LIFE SCIENCES has performed over the last 5 years, please visit here.

RPG LIFE SCIENCES Share Price Performance

Over the last one year, RPG LIFE SCIENCES share price has moved up from Rs 902.9 to Rs 1,650.0, registering a gain of Rs 747.1 or around 82.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 36,790.1 (up 0.3%). Over the last one year it has moved up from 25,406.2 to 36,790.1, a gain of 11,384 points (up 44.8%).

Overall, the S&P BSE SENSEX is up 24.8% over the year.

(To know more, check out historical annual results for RPG LIFE SCIENCES and quarterly results for RPG LIFE SCIENCES)