SUVEN LIFE SCIENCES 2023-24 Annual Report Analysis

Mon, 8 Jul

SUVEN 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.

SUVEN LIFE SCIENCES Income Statement Analysis

• Operating income during the year fell 13.6% 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 1029.7% in FY24 as against 884.6% in FY23.
• Depreciation charges decreased by 0.6% and finance costs decreased by 27.4% YoY, respectively.
• Other income grew by 150.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 873.5% in FY23 to 898.6% in FY24.

SUVEN LIFE SCIENCES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	135	117	-13.6%
Other income	Rs m	84	211	150.1%
Total Revenues	Rs m	220	328	49.3%
Gross profit	Rs m	-1,198	-1,204	NA
Depreciation	Rs m	65	65	-0.6%
Interest	Rs m	4	3	-27.4%
Profit before tax	Rs m	-1,183	-1,061	NA
Tax	Rs m	0	-10	0.0
Profit after tax	Rs m	-1,183	-1,051	NA
Gross profit margin	%	-884.6	-1,029.7
Effective tax rate	%	0.0	0.9
Net profit margin	%	-873.5	-898.6

Don't Miss: Key Information for Long-term Investors

SUVEN LIFE SCIENCES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 135 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -87.1%.
• Current assets fell 26% and stood at Rs 3 billion, while fixed assets fell 79% and stood at Rs 282 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 5 billion during FY23, thereby witnessing a fall of 41%.

SUVEN LIFE SCIENCES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,753	2,700	-28.1
Current Liabilities	Rs m	1,050	135	-87.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,828	2,849	-41.0
Current assets	Rs m	3,455	2,567	-25.7
Fixed Assets	Rs m	1,373	282	-79.4
Total Assets	Rs m	4,828	2,849	-41.0

SUVEN LIFE SCIENCES Cash Flow Statement Analysis

• SUVEN LIFE SCIENCES's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 944 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -11 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -221 million from the Rs 317 million net cash flows seen during FY23.

SUVEN 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	-1,160	-1,155	-
Cash Flow from Investing Activities	Rs m	-2,478	944	-
Cash Flow from Financing Activities	Rs m	3,955	-11	-
Net Cash Flow	Rs m	317	-221	-

Current Valuations for SUVEN LIFE SCIENCES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -4.8, an improvement from the EPS of Rs -5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 131.4, stands at -27.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.6 times, while the price to sales ratio stands at 245.1 times.
• The company's price to cash flow (P/CF) ratio stood at -19.6 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	0.6	0.5
TTM Earnings per share	Rs	-5.4	-4.8
Diluted earnings per share	Rs	-5.4	-4.8
Price to Cash Flow	x	-9.5	-19.6
TTM P/E ratio	x	-8.9	-27.3
Price / Book Value ratio	x	4.0	7.1
Market Cap	Rs m	15,131	19,298
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUVEN LIFE SCIENCES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 19.0x during FY24, from 3.3x 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 -353.8x during FY24, from -286.1x 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 -38.9% during FY24, from -31.5% 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 -39.2% during FY24, from -31.4% 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 -36.8% during FY24, from -24.4% 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	3.3	19.0
Debtors’ Days	Days	218	401
Interest coverage	x	-286.1	-353.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-24.4	-36.8
Return on equity	%	-31.5	-38.9
Return on capital employed	%	-31.4	-39.2

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

SUVEN LIFE SCIENCES Share Price Performance

Over the last one year, SUVEN LIFE SCIENCES share price has moved up from Rs 63.5 to Rs 131.4, registering a gain of Rs 67.9 or around 106.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,178.1 (down 0.2%). Over the last one year it has moved up from 25,944.1 to 38,178.1, a gain of 12,234 points (up 47.2%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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