SUDARSHAN PHARMA 2023-24 Annual Report Analysis

Tue, 29 Oct

SUDARSHAN PHARMA 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.

SUDARSHAN PHARMA Income Statement Analysis

• Operating income during the year rose 0.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 55.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.9% in FY24 as against 3.2% in FY23.
• Depreciation charges increased by 37.2% and finance costs increased by 65.6% YoY, respectively.
• Other income grew by 133.2% YoY.
• Net profit for the year grew by 62.8% YoY.
• Net profit margins during the year grew from 1.5% in FY23 to 2.5% in FY24.

SUDARSHAN PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,613	4,635	0.5%
Other income	Rs m	11	26	133.2%
Total Revenues	Rs m	4,624	4,661	0.8%
Gross profit	Rs m	147	228	55.3%
Depreciation	Rs m	9	12	37.2%
Interest	Rs m	54	89	65.6%
Profit before tax	Rs m	95	152	60.4%
Tax	Rs m	25	38	53.4%
Profit after tax	Rs m	70	115	62.8%
Gross profit margin	%	3.2	4.9
Effective tax rate	%	25.9	24.8
Net profit margin	%	1.5	2.5

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SUDARSHAN PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 35.7%.
• Long-term debt down at Rs 105 million as compared to Rs 128 million during FY23, a fall of 18.0%.
• Current assets rose 22% and stood at Rs 2 billion, while fixed assets rose 23% and stood at Rs 416 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 22%.

SUDARSHAN PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,010	1,117	10.6
Current Liabilities	Rs m	1,185	1,608	35.7
Long-term Debt	Rs m	128	105	-18.0
Total Liabilities	Rs m	2,325	2,831	21.8
Current assets	Rs m	1,986	2,416	21.6
Fixed Assets	Rs m	339	416	22.7
Total Assets	Rs m	2,325	2,831	21.8

SUDARSHAN PHARMA Cash Flow Statement Analysis

• SUDARSHAN PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 60 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -55 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -121 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -116 million from the Rs 115 million net cash flows seen during FY23.

SUDARSHAN PHARMA 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	-288	60	-
Cash Flow from Investing Activities	Rs m	-257	-55	-
Cash Flow from Financing Activities	Rs m	659	-121	-
Net Cash Flow	Rs m	115	-116	-

Current Valuations for SUDARSHAN PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 356.3, stands at 74.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 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	191.7	192.6
TTM Earnings per share	Rs	2.9	4.8
Diluted earnings per share	Rs	2.9	4.8
Price to Cash Flow	x	16.9	13.7
TTM P/E ratio	x	19.1	74.8
Price / Book Value ratio	x	1.5	1.6
Market Cap	Rs m	1,505	1,744
Dividends per share (Unadj.)	Rs	0.3	0.0

Ratio Analysis for SUDARSHAN PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.7x 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 2.7x during FY24, from 2.8x 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 10.3% during FY24, from 7.0% 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 19.8% during FY24, from 13.1% 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 7.2% during FY24, from 5.4% 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	1.7	1.5
Debtors’ Days	Days	645	965
Interest coverage	x	2.8	2.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.4	7.2
Return on equity	%	7.0	10.3
Return on capital employed	%	13.1	19.8

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

SUDARSHAN PHARMA Share Price Performance

Over the last one year, SUDARSHAN PHARMA share price has moved up from Rs 81.2 to Rs 356.3, registering a gain of Rs 275.1 or around 338.8%.

Overall, the S&P BSE SENSEX is up 24.7% over the year.

(To know more, check out historical annual results for SUDARSHAN PHARMA and quarterly results for SUDARSHAN PHARMA)