WELCURE DRUG 2021-22 Annual Report Analysis

Tue, 14 Jun

WELCURE DRUG has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

WELCURE DRUG Income Statement Analysis

• Operating income during the year fell 21.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 56.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.9% in FY22 as against 41.4% in FY21.
• Depreciation charges increased by 0.0% increased by 0.0% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year declined by 56.4% YoY.
• Net profit margins during the year declined from 41.5% in FY21 to 22.5% in FY22.

WELCURE DRUG Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1	1	-21.1%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	1	1	-21.6%
Gross profit	Rs m	1	0	-56.4%
Depreciation	Rs m	0	0	0.0%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	1	0	-56.4%
Tax	Rs m	0	0	0.0%
Profit after tax	Rs m	1	0	-56.4%
Gross profit margin	%	41.4	22.9
Effective tax rate	%	0.0	0.0
Net profit margin	%	41.5	22.5

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WELCURE DRUG Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 0 million as compared to Rs 0 million in FY21, thereby witnessing an decrease of 0.0%.
• Current assets rose 33% and stood at Rs 1 million, while fixed assets fell 0% and stood at Rs 0 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 million as against Rs 1 million during FY21, thereby witnessing a growth of 33%.

WELCURE DRUG Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1	1	34.8
Current Liabilities	Rs m	0	0	0.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1	1	32.9
Current assets	Rs m	1	1	32.9
Fixed Assets	Rs m	0	0	0.0
Total Assets	Rs m	1	1	32.9

WELCURE DRUG Cash Flow Statement Analysis

• WELCURE DRUG's cash flow from operating activities (CFO) during FY22 stood at Rs 0 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 0 million, an improvement of 0.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY21.

WELCURE DRUG Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	0	0	-54.8%
Cash Flow from Investing Activities	Rs m	0	0	0.0%
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	0	0	-54.8%

Current Valuations for WELCURE DRUG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.0, an decline from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6.7, stands at 391.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 96.8 times, while the price to sales ratio stands at 85.7 times.
• The company's price to cash flow (P/CF) ratio stood at 401.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	0.1	0.1
TTM Earnings per share	Rs	0.0	0.0
Diluted earnings per share	Rs	0.0	0.0
Price to Cash Flow	x	46.1	401.1
TTM P/E ratio	x	44.6	391.3
Price / Book Value ratio	x	25.9	101.3
Market Cap	Rs m	18	94
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for WELCURE DRUG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 24.3x during FY22, from 18.3x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 25.4% during FY22, from 79.9% during FY22. 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 25.4% during FY22, from 80.1% during FY21. 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 24.4% during FY22, from 75.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	18.3	24.3
Debtors’ Days	Days	0	0
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	75.7	24.4
Return on equity	%	79.9	25.4
Return on capital employed	%	80.1	25.4

To see how WELCURE DRUG has performed over the last 5 years, please visit here.

WELCURE DRUG Share Price Performance

Over the last one year, WELCURE DRUG share price has moved up from Rs 2.6 to Rs 6.7, registering a gain of Rs 4.1 or around 161.2%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,622.2 (up 0.1%). Over the last one year it has moved down from 25,503.7 to 21,622.2, a loss of 3,882 points (down 15.2%).

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for WELCURE DRUG and quarterly results for WELCURE DRUG)