SUVEN PHARMACEUTICALS 2023-24 Annual Report Analysis

Thu, 18 Jul

SUVEN PHARMACEUTICALS 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.

SUVEN PHARMACEUTICALS Income Statement Analysis

• Operating income during the year fell 21.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 29.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 38.6% in FY24 as against 42.8% in FY23.
• Depreciation charges increased by 13.8% and finance costs decreased by 41.8% YoY, respectively.
• Other income grew by 33.5% YoY.
• Net profit for the year declined by 27.0% YoY.
• Net profit margins during the year declined from 30.7% in FY23 to 28.6% in FY24.

SUVEN PHARMACEUTICALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,403	10,514	-21.6%
Other income	Rs m	464	619	33.5%
Total Revenues	Rs m	13,867	11,133	-19.7%
Gross profit	Rs m	5,742	4,058	-29.3%
Depreciation	Rs m	480	546	13.8%
Interest	Rs m	128	75	-41.8%
Profit before tax	Rs m	5,597	4,057	-27.5%
Tax	Rs m	1,484	1,054	-29.0%
Profit after tax	Rs m	4,113	3,003	-27.0%
Gross profit margin	%	42.8	38.6
Effective tax rate	%	26.5	26.0
Net profit margin	%	30.7	28.6

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SUVEN PHARMACEUTICALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -32.0%.
• Current assets rose 18% and stood at Rs 14 billion, while fixed assets rose 4% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 12%.

SUVEN PHARMACEUTICALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,352	20,487	18.1
Current Liabilities	Rs m	3,031	2,061	-32.0
Long-term Debt	Rs m	46	0	-100.0
Total Liabilities	Rs m	21,101	23,532	11.5
Current assets	Rs m	11,554	13,623	17.9
Fixed Assets	Rs m	9,547	9,909	3.8
Total Assets	Rs m	21,101	23,532	11.5

SUVEN PHARMACEUTICALS Cash Flow Statement Analysis

• SUVEN PHARMACEUTICALS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 85.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -138 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -176 million from the Rs 202 million net cash flows seen during FY23.

SUVEN PHARMACEUTICALS 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	4,572	3,585	-21.6%
Cash Flow from Investing Activities	Rs m	-1,950	-3,623	-
Cash Flow from Financing Activities	Rs m	-2,420	-138	-
Net Cash Flow	Rs m	202	-176	-

Current Valuations for SUVEN PHARMACEUTICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.8, an decline from the EPS of Rs 16.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 874.0, stands at 74.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 21.2 times.
• The company's price to cash flow (P/CF) ratio stood at 41.0 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	52.7	41.3
TTM Earnings per share	Rs	16.2	11.8
Diluted earnings per share	Rs	16.2	11.8
Price to Cash Flow	x	26.2	41.0
TTM P/E ratio	x	29.3	74.1
Price / Book Value ratio	x	7.5	7.1
Market Cap	Rs m	129,395	145,357
Dividends per share (Unadj.)	Rs	6.0	0.0

Ratio Analysis for SUVEN PHARMACEUTICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.6x during FY24, from 3.8x 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 55.4x during FY24, from 44.7x 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 declined and down at 14.7% during FY24, from 23.7% 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 20.2% during FY24, from 32.9% 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 13.1% during FY24, from 20.1% 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	3.8	6.6
Debtors’ Days	Days	302	464
Interest coverage	x	44.7	55.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.1	13.1
Return on equity	%	23.7	14.7
Return on capital employed	%	32.9	20.2

To see how SUVEN PHARMACEUTICALS has performed over the last 5 years, please visit here.

SUVEN PHARMACEUTICALS Share Price Performance

Over the last one year, SUVEN PHARMACEUTICALS share price has moved up from Rs 485.5 to Rs 874.0, registering a gain of Rs 388.5 or around 80.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,522.3 (down 0.6%). Over the last one year it has moved up from 26,342.4 to 38,522.3, a gain of 12,180 points (up 46.2%).

Overall, the S&P BSE SENSEX is up 21.3% over the year.

(To know more, check out historical annual results for SUVEN PHARMACEUTICALS and quarterly results for SUVEN PHARMACEUTICALS)