SUN PHARMA ADV. RES. 2023-24 Annual Report Analysis

Mon, 22 Jul

SUN PHARMA ADV. RES. 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.

SUN PHARMA ADV. RES. Income Statement Analysis

• Operating income during the year fell 68.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 532.3% in FY24 as against 89.6% in FY23.
• Depreciation charges increased by 6.3% and finance costs decreased by 77.8% YoY, respectively.
• Other income grew by 170.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 93.2% in FY23 to 512.6% in FY24.

SUN PHARMA ADV. RES. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,388	755	-68.4%
Other income	Rs m	109	295	170.9%
Total Revenues	Rs m	2,497	1,050	-57.9%
Gross profit	Rs m	-2,141	-4,021	NA
Depreciation	Rs m	118	125	6.3%
Interest	Rs m	76	17	-77.8%
Profit before tax	Rs m	-2,226	-3,868	NA
Tax	Rs m	0	4	0.0
Profit after tax	Rs m	-2,226	-3,872	NA
Gross profit margin	%	-89.6	-532.3
Effective tax rate	%	0.0	-0.1
Net profit margin	%	-93.2	-512.6

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SUN PHARMA ADV. RES. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 48.1%.
• Current assets fell 41% and stood at Rs 3 billion, while fixed assets fell 35% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 8 billion during FY23, thereby witnessing a fall of 38%.

SUN PHARMA ADV. RES. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,128	1,258	-75.5
Current Liabilities	Rs m	1,789	2,651	48.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,301	5,138	-38.1
Current assets	Rs m	4,550	2,694	-40.8
Fixed Assets	Rs m	3,752	2,444	-34.9
Total Assets	Rs m	8,301	5,138	-38.1

SUN PHARMA ADV. RES. Cash Flow Statement Analysis

• SUN PHARMA ADV. RES.'s cash flow from operating activities (CFO) during FY24 stood at Rs -4 billion, an improvement of 520.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 424 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 47 million from the Rs -6 million net cash flows seen during FY23.

SUN PHARMA ADV. RES. 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	-691	-4,292	-
Cash Flow from Investing Activities	Rs m	-5,483	3,915	-
Cash Flow from Financing Activities	Rs m	6,168	424	-93.1%
Net Cash Flow	Rs m	-6	47	-

Current Valuations for SUN PHARMA ADV. RES.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -11.9, an decline from the EPS of Rs -6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 224.1, stands at -18.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 57.8 times, while the price to sales ratio stands at 96.3 times.
• The company's price to cash flow (P/CF) ratio stood at -26.1 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	7.4	2.3
TTM Earnings per share	Rs	-6.9	-11.9
Diluted earnings per share	Rs	-6.9	-11.9
Price to Cash Flow	x	-27.6	-26.1
TTM P/E ratio	x	-26.2	-18.8
Price / Book Value ratio	x	14.7	77.6
Market Cap	Rs m	75,630	97,616
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUN PHARMA ADV. RES.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 2.5x 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 -227.2x during FY24, from -28.2x 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 declined and down at -307.9% during FY24, from -43.4% 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 -306.3% during FY24, from -41.9% 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 -75.0% during FY24, from -25.9% 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	2.5	1.0
Debtors’ Days	Days	500	750
Interest coverage	x	-28.2	-227.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-25.9	-75.0
Return on equity	%	-43.4	-307.9
Return on capital employed	%	-41.9	-306.3

To see how SUN PHARMA ADV. RES. has performed over the last 5 years, please visit here.

SUN PHARMA ADV. RES. Share Price Performance

Over the last one year, SUN PHARMA ADV. RES. share price has moved down from Rs 229.5 to Rs 224.1, registering a loss of Rs 5.4 or around 2.4%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for SUN PHARMA ADV. RES. and quarterly results for SUN PHARMA ADV. RES.)