TATVA CHINTAN PHARMA 2023-24 Annual Report Analysis

Wed, 28 Aug

TATVA CHINTAN 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.

TATVA CHINTAN PHARMA Income Statement Analysis

• Operating income during the year fell 7.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.4% in FY24 as against 13.5% in FY23.
• Depreciation charges increased by 168.0% and finance costs decreased by 21.7% YoY, respectively.
• Other income grew by 30.7% YoY.
• Net profit for the year declined by 33.3% YoY.
• Net profit margins during the year declined from 10.7% in FY23 to 7.7% in FY24.

TATVA CHINTAN PHARMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,236	3,935	-7.1%
Other income	Rs m	57	75	30.7%
Total Revenues	Rs m	4,294	4,010	-6.6%
Gross profit	Rs m	572	684	19.6%
Depreciation	Rs m	96	256	168.0%
Interest	Rs m	86	67	-21.7%
Profit before tax	Rs m	448	436	-2.7%
Tax	Rs m	-7	132	NA
Profit after tax	Rs m	455	304	-33.3%
Gross profit margin	%	13.5	17.4
Effective tax rate	%	-1.6	30.3
Net profit margin	%	10.7	7.7

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

TATVA CHINTAN PHARMA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 870 million as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -63.8%.
• Long-term debt down at Rs 6 million as compared to Rs 42 million during FY23, a fall of 84.9%.
• Current assets fell 3% and stood at Rs 3 billion, while fixed assets rose 18% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 9%.

TATVA CHINTAN PHARMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,148	7,371	43.2
Current Liabilities	Rs m	2,406	870	-63.8
Long-term Debt	Rs m	42	6	-84.9
Total Liabilities	Rs m	7,443	8,138	9.3
Current assets	Rs m	3,141	3,052	-2.8
Fixed Assets	Rs m	4,302	5,085	18.2
Total Assets	Rs m	7,443	8,138	9.3

TATVA CHINTAN PHARMA Cash Flow Statement Analysis

• TATVA CHINTAN PHARMA's cash flow from operating activities (CFO) during FY24 stood at Rs 980 million, an improvement of 252.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 19.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 305 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 79 million from the Rs -357 million net cash flows seen during FY23.

TATVA CHINTAN 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	278	980	252.9%
Cash Flow from Investing Activities	Rs m	-1,011	-1,205	-
Cash Flow from Financing Activities	Rs m	378	305	-19.3%
Net Cash Flow	Rs m	-357	79	-

Current Valuations for TATVA CHINTAN PHARMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.0, an decline from the EPS of Rs 20.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 992.9, stands at 89.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 5.9 times.
• The company's price to cash flow (P/CF) ratio stood at 61.7 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	191.1	168.2
TTM Earnings per share	Rs	20.5	13.0
Diluted earnings per share	Rs	19.4	13.0
Price to Cash Flow	x	70.8	61.7
TTM P/E ratio	x	85.7	89.1
Price / Book Value ratio	x	9.2	4.7
Market Cap	Rs m	47,157	34,520
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for TATVA CHINTAN PHARMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY24, from 1.3x 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 improved and stood at 7.5x during FY24, from 6.2x 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 4.1% during FY24, from 8.8% 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 6.8% during FY24, from 10.3% 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 4.6% during FY24, from 7.3% 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	1.3	3.5
Debtors’ Days	Days	73	65
Interest coverage	x	6.2	7.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.3	4.6
Return on equity	%	8.8	4.1
Return on capital employed	%	10.3	6.8

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

TATVA CHINTAN PHARMA Share Price Performance

Over the last one year, TATVA CHINTAN PHARMA share price has moved down from Rs 1,723.5 to Rs 992.9, registering a loss of Rs 730.6 or around 42.4%.

Overall, the S&P BSE SENSEX is up 26.1% over the year.

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