SYNGENE INTERNATIONAL 2023-24 Annual Report Analysis

Thu, 4 Jul

SYNGENE INTERNATIONAL 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.

SYNGENE INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 9.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.8% in FY24 as against 29.2% in FY23.
• Depreciation charges increased by 16.2% and finance costs increased by 4.4% YoY, respectively.
• Other income grew by 24.8% YoY.
• Net profit for the year grew by 9.8% YoY.
• Net profit margins during the year grew from 14.5% in FY23 to 14.6% in FY24.

SYNGENE INTERNATIONAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,929	34,886	9.3%
Other income	Rs m	726	906	24.8%
Total Revenues	Rs m	32,655	35,792	9.6%
Gross profit	Rs m	9,327	10,033	7.6%
Depreciation	Rs m	3,665	4,259	16.2%
Interest	Rs m	452	472	4.4%
Profit before tax	Rs m	5,936	6,208	4.6%
Tax	Rs m	1,292	1,108	-14.2%
Profit after tax	Rs m	4,644	5,100	9.8%
Gross profit margin	%	29.2	28.8
Effective tax rate	%	21.8	17.8
Net profit margin	%	14.5	14.6

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

SYNGENE INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 12 billion in FY23, thereby witnessing an decrease of -3.7%.
• Long-term debt down at Rs 1,000 million as compared to Rs 5 billion during FY23, a fall of 79.6%.
• Current assets fell 19% and stood at Rs 20 billion, while fixed assets rose 24% and stood at Rs 42 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 61 billion as against Rs 58 billion during FY23, thereby witnessing a growth of 6%.

SYNGENE INTERNATIONAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	35,526	41,886	17.9
Current Liabilities	Rs m	11,882	11,443	-3.7
Long-term Debt	Rs m	4,890	1,000	-79.6
Total Liabilities	Rs m	57,614	61,108	6.1
Current assets	Rs m	24,253	19,589	-19.2
Fixed Assets	Rs m	33,361	41,519	24.5
Total Assets	Rs m	57,614	61,108	6.1

SYNGENE INTERNATIONAL Cash Flow Statement Analysis

• SYNGENE INTERNATIONAL's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 26.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -38 million from the Rs -2 billion net cash flows seen during FY23.

SYNGENE INTERNATIONAL 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	8,235	10,421	26.5%
Cash Flow from Investing Activities	Rs m	-6,564	-4,956	-
Cash Flow from Financing Activities	Rs m	-3,425	-5,514	-
Net Cash Flow	Rs m	-1,723	-38	-

Current Valuations for SYNGENE INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs 11.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 718.5, stands at 56.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 8.3 times.
• The company's price to cash flow (P/CF) ratio stood at 30.9 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	79.5	86.8
TTM Earnings per share	Rs	11.6	12.7
Diluted earnings per share	Rs	11.5	12.7
Price to Cash Flow	x	28.8	30.9
TTM P/E ratio	x	51.5	56.7
Price / Book Value ratio	x	6.7	6.9
Market Cap	Rs m	239,606	288,798
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for SYNGENE INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 2.0x 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 14.2x during FY24, from 14.1x 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 12.2% during FY24, from 13.1% 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 15.6% during FY24, from 15.8% 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 9.1% during FY24, from 8.8% 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	2.0	1.7
Debtors’ Days	Days	61	46
Interest coverage	x	14.1	14.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.8	9.1
Return on equity	%	13.1	12.2
Return on capital employed	%	15.8	15.6

To see how SYNGENE INTERNATIONAL has performed over the last 5 years, please visit here.

SYNGENE INTERNATIONAL Share Price Performance

Over the last one year, SYNGENE INTERNATIONAL share price has moved down from Rs 742.3 to Rs 718.5, registering a loss of Rs 23.8 or around 3.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 37,428.9 (up 0.7%). Over the last one year it has moved up from 25,703.5 to 37,428.9, a gain of 11,725 points (up 45.6%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for SYNGENE INTERNATIONAL and quarterly results for SYNGENE INTERNATIONAL)