SEQUENT SCIENTIFIC 2023-24 Annual Report Analysis

Wed, 28 Aug

SEQUENT SCIENTIFIC 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.

SEQUENT SCIENTIFIC Income Statement Analysis

• Operating income during the year fell 3.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.2% in FY24 as against 3.7% in FY23.
• Depreciation charges increased by 10.5% and finance costs increased by 35.4% YoY, respectively.
• Other income grew by 71.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 8.6% in FY23 to 2.2% in FY24.

SEQUENT SCIENTIFIC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,209	13,697	-3.6%
Other income	Rs m	64	110	71.5%
Total Revenues	Rs m	14,273	13,807	-3.3%
Gross profit	Rs m	-528	440	NA
Depreciation	Rs m	557	615	10.5%
Interest	Rs m	355	481	35.4%
Profit before tax	Rs m	-1,377	-546	NA
Tax	Rs m	-157	-250	NA
Profit after tax	Rs m	-1,220	-296	NA
Gross profit margin	%	-3.7	3.2
Effective tax rate	%	11.4	45.8
Net profit margin	%	-8.6	-2.2

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SEQUENT SCIENTIFIC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 12.2%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 4.9%.
• Current assets rose 4% and stood at Rs 8 billion, while fixed assets fell 8% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 15 billion during FY23, thereby witnessing a fall of 1%.

SEQUENT SCIENTIFIC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,425	5,793	-9.8
Current Liabilities	Rs m	5,588	6,270	12.2
Long-term Debt	Rs m	1,501	1,427	-4.9
Total Liabilities	Rs m	14,838	14,620	-1.5
Current assets	Rs m	7,798	8,109	4.0
Fixed Assets	Rs m	6,939	6,392	-7.9
Total Assets	Rs m	14,838	14,620	-1.5

SEQUENT SCIENTIFIC Cash Flow Statement Analysis

• SEQUENT SCIENTIFIC's cash flow from operating activities (CFO) during FY24 stood at Rs 306 million, an improvement of 82.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -59 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -14 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 232 million from the Rs -159 million net cash flows seen during FY23.

SEQUENT SCIENTIFIC 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	168	306	82.0%
Cash Flow from Investing Activities	Rs m	-650	-59	-
Cash Flow from Financing Activities	Rs m	322	-14	-
Net Cash Flow	Rs m	-159	232	-

Current Valuations for SEQUENT SCIENTIFIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.2, an improvement from the EPS of Rs -4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 169.1, stands at 298.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 88.0 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	57.0	54.9
TTM Earnings per share	Rs	-4.9	-1.2
Diluted earnings per share	Rs	-4.9	-1.2
Price to Cash Flow	x	-27.3	88.0
TTM P/E ratio	x	-14.9	298.7
Price / Book Value ratio	x	4.2	4.8
Market Cap	Rs m	27,151	28,090
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SEQUENT SCIENTIFIC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.4x 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 -0.1x during FY24, from -2.9x 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 -5.1% during FY24, from -19.0% 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 -0.9% during FY24, from -12.9% 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 1.3% 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	1.4	1.3
Debtors’ Days	Days	88	89
Interest coverage	x	-2.9	-0.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	-5.8	1.3
Return on equity	%	-19.0	-5.1
Return on capital employed	%	-12.9	-0.9

To see how SEQUENT SCIENTIFIC has performed over the last 5 years, please visit here.

SEQUENT SCIENTIFIC Share Price Performance

Over the last one year, SEQUENT SCIENTIFIC share price has moved up from Rs 91.9 to Rs 169.1, registering a gain of Rs 77.2 or around 84.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 42,532.5 (up 0.4%). Over the last one year it has moved up from 27,859.6 to 42,532.5, a gain of 14,673 points (up 52.7%).

Overall, the S&P BSE SENSEX is up 26.0% over the year.

(To know more, check out historical annual results for SEQUENT SCIENTIFIC and quarterly results for SEQUENT SCIENTIFIC)