UNICHEM LAB 2023-24 Annual Report Analysis

Sat, 13 Jul

UNICHEM LAB 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.

UNICHEM LAB Income Statement Analysis

• Operating income during the year rose 26.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.5% in FY24 as against 6.3% in FY23.
• Depreciation charges decreased by 0.2% and finance costs increased by 30.9% YoY, respectively.
• Other income declined by 18.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 15.1% in FY23 to 4.1% in FY24.

UNICHEM LAB Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,430	17,049	26.9%
Other income	Rs m	385	316	-18.0%
Total Revenues	Rs m	13,815	17,365	25.7%
Gross profit	Rs m	-841	426	NA
Depreciation	Rs m	1,134	1,132	-0.2%
Interest	Rs m	173	227	30.9%
Profit before tax	Rs m	-1,764	-617	NA
Tax	Rs m	259	88	-65.9%
Profit after tax	Rs m	-2,022	-705	NA
Gross profit margin	%	-6.3	2.5
Effective tax rate	%	-14.7	-14.3
Net profit margin	%	-15.1	-4.1

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UNICHEM LAB Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 10.7%.
• Long-term debt down at Rs 382 million as compared to Rs 636 million during FY23, a fall of 39.9%.
• Current assets rose 7% and stood at Rs 17 billion, while fixed assets fell 8% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 32 billion as against Rs 32 billion during FY23, thereby witnessing a fall of 1%.

UNICHEM LAB Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,233	23,594	-2.6
Current Liabilities	Rs m	6,396	7,079	10.7
Long-term Debt	Rs m	636	382	-39.9
Total Liabilities	Rs m	31,829	31,626	-0.6
Current assets	Rs m	15,885	16,942	6.7
Fixed Assets	Rs m	15,911	14,651	-7.9
Total Assets	Rs m	31,829	31,626	-0.6

UNICHEM LAB Cash Flow Statement Analysis

• UNICHEM LAB's cash flow from operating activities (CFO) during FY24 stood at Rs 167 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 504 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -328 million from the Rs 746 million net cash flows seen during FY23.

UNICHEM LAB 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	-851	167	-
Cash Flow from Investing Activities	Rs m	2,028	504	-75.1%
Cash Flow from Financing Activities	Rs m	-813	-1,063	-
Net Cash Flow	Rs m	746	-328	-

Current Valuations for UNICHEM LAB

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -10.0, an improvement from the EPS of Rs -28.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 531.1, stands at -53.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 71.3 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	190.7	242.1
TTM Earnings per share	Rs	-28.7	-10.0
Diluted earnings per share	Rs	-28.7	-10.0
Price to Cash Flow	x	-22.9	71.3
TTM P/E ratio	x	-10.1	-53.1
Price / Book Value ratio	x	1.0	1.3
Market Cap	Rs m	24,396	30,503
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for UNICHEM LAB

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 2.5x 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 -1.7x during FY24, from -9.2x 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 improved and stood at -3.0% during FY24, from -8.3% 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 -1.6% during FY24, from -6.4% 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 improved and stood at -1.5% during FY24, from -5.8% 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	2.5	2.4
Debtors’ Days	Days	1,600	1,307
Interest coverage	x	-9.2	-1.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-5.8	-1.5
Return on equity	%	-8.3	-3.0
Return on capital employed	%	-6.4	-1.6

To see how UNICHEM LAB has performed over the last 5 years, please visit here.

UNICHEM LAB Share Price Performance

Over the last one year, UNICHEM LAB share price has moved up from Rs 378.6 to Rs 531.1, registering a gain of Rs 152.5 or around 40.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,397.3 (down 0.1%). Over the last one year it has moved up from 26,140.8 to 38,397.3, a gain of 12,257 points (up 46.9%).

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

(To know more, check out historical annual results for UNICHEM LAB and quarterly results for UNICHEM LAB)