VALIANT LABORATORIES LTD. 2023-24 Annual Report Analysis

Fri, 19 Jul

VALIANT LABORATORIES LTD. 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.

VALIANT LABORATORIES LTD. Income Statement Analysis

• Operating income during the year fell 45.5% 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 4.6% in FY24 as against 10.5% in FY23.
• Depreciation charges increased by 25.8% and finance costs decreased by 69.3% YoY, respectively.
• Other income grew by 98.1% YoY.
• Net profit for the year declined by 98.9% YoY.
• Net profit margins during the year declined from 8.7% in FY23 to 0.2% in FY24.

VALIANT LABORATORIES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,339	1,821	-45.5%
Other income	Rs m	49	97	98.1%
Total Revenues	Rs m	3,388	1,917	-43.4%
Gross profit	Rs m	351	-84	NA
Depreciation	Rs m	16	20	25.8%
Interest	Rs m	3	1	-69.3%
Profit before tax	Rs m	381	-8	NA
Tax	Rs m	91	-11	NA
Profit after tax	Rs m	290	3	-98.9%
Gross profit margin	%	10.5	-4.6
Effective tax rate	%	24.0	141.4
Net profit margin	%	8.7	0.2

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VALIANT LABORATORIES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 291 million as compared to Rs 507 million in FY23, thereby witnessing an decrease of -42.7%.
• Long-term debt stood at Rs 747 million as compared to Rs 594 million during FY23, a growth of 25.7%.
• Current assets rose 50% and stood at Rs 2 billion, while fixed assets rose 88% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 61%.

VALIANT LABORATORIES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,005	2,369	135.7
Current Liabilities	Rs m	507	291	-42.7
Long-term Debt	Rs m	594	747	25.7
Total Liabilities	Rs m	2,130	3,427	60.9
Current assets	Rs m	1,506	2,255	49.8
Fixed Assets	Rs m	624	1,171	87.8
Total Assets	Rs m	2,130	3,427	60.9

VALIANT LABORATORIES LTD. Cash Flow Statement Analysis

• VALIANT LABORATORIES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 19 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 160.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 16,422% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 105 million from the Rs -1 million net cash flows seen during FY23.

VALIANT LABORATORIES LTD. 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	561	19	-96.6%
Cash Flow from Investing Activities	Rs m	-552	-1,439	-
Cash Flow from Financing Activities	Rs m	-9	1,524	-
Net Cash Flow	Rs m	-1	105	-

Current Valuations for VALIANT LABORATORIES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 8.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 138.5, stands at 1,879.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 348.8 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	102.6	41.9
TTM Earnings per share	Rs	8.9	0.1
Diluted earnings per share	Rs	6.7	0.1
Price to Cash Flow	x	0.0	348.8
TTM P/E ratio	x	0.0	1,879.9
Price / Book Value ratio	x	0.0	3.4
Market Cap	Rs m	0	7,971
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for VALIANT LABORATORIES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.8x during FY24, from 3.0x 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 deteriorated and stood at -8.9x during FY24, from 151.1x 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 0.1% during FY24, from 28.9% 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 -0.2% during FY24, from 24.0% 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 0.1% during FY24, from 13.7% 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	3.0	7.8
Debtors’ Days	Days	968	917
Interest coverage	x	151.1	-8.9
Debt to equity ratio	x	0.6	0.3
Return on assets	%	13.7	0.1
Return on equity	%	28.9	0.1
Return on capital employed	%	24.0	-0.2

To see how VALIANT LABORATORIES LTD. has performed over the last 5 years, please visit here.

VALIANT LABORATORIES LTD. Share Price Performance

Over the last one year, VALIANT LABORATORIES LTD. share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 38,722.7 (down 0.1%). Over the last one year it has moved up from 26,477.4 to 38,722.7, a gain of 12,245 points (up 46.2%).

Overall, the NIFTY 50 is up 0.3% over the year.

(To know more, check out historical annual results for VALIANT LABORATORIES LTD. and quarterly results for VALIANT LABORATORIES LTD.)