How has been the historical performance of Indo US Bio-Tech?

Revenue and Profitability Trends

Over the three-year period ending March 2022, Indo US Bio-Tech's net sales increased from ₹39.76 crores in FY20 to ₹50.06 crores in FY22, reflecting a compound growth trajectory. The total operating income mirrored this trend, with no other operating income reported during these years. Notably, the operating profit before depreciation, interest, and tax (PBDIT) rose from ₹3.98 crores in FY20 to ₹6.95 crores in FY22, indicating enhanced operational efficiency. The operating profit margin improved from 10.01% in FY20 to 13.52% in FY22, underscoring better cost management despite fluctuations in raw material costs and purchase of finished goods.

Profit before tax (PBT) showed a consistent upward movement, climbing from ₹2.86 crores in FY20 to ₹5.31 crores in FY22. Correspondingly, profit after tax (PAT) nearly doubled from ₹2.53 crores in FY20 to ₹5.06 crores in FY22, although the PAT margin saw a slight dip from 12.22% in FY21 to 10.11% in FY22. Earnings per share (EPS) reflected these changes, with diluted EPS rising from ₹4.18 in FY20 to ₹8.27 in FY22, despite a temporary dip in FY21.

Cost Structure and Expenditure Analysis

The company's expenditure profile reveals significant shifts in raw material costs and purchase of finished goods. Raw material costs surged sharply to ₹45.20 crores in FY22 from ₹3.59 crores in FY20, while purchases of finished goods declined markedly from ₹26.68 crores in FY20 to ₹2.18 crores in FY22. This suggests a strategic pivot in sourcing or production methods. Other expenses fluctuated, peaking at ₹9.02 crores in FY21 before easing to ₹6.41 crores in FY22. Employee costs remained relatively stable, reflecting controlled overheads. Total expenditure excluding depreciation rose in line with revenue, reaching ₹43.29 crores in FY22.

Balance Sheet and Financial Position

Indo US Bio-Tech's balance sheet strengthened considerably over the period. Shareholder's funds increased from ₹16.44 crores in FY20 to ₹38.51 crores in FY22, supported by a rise in reserves from ₹10.37 crores to ₹29.71 crores. The equity capital also expanded from ₹6.07 crores to ₹9.17 crores, reflecting possible capital infusion or share issuance. Total liabilities grew from ₹34.70 crores in FY20 to ₹55.20 crores in FY22, with long-term borrowings rising moderately and short-term borrowings increasing from ₹7.07 crores to ₹9.11 crores.

Asset-wise, the company invested in fixed assets, with net block increasing from ₹1.41 crores in FY20 to ₹5.55 crores in FY22, alongside capital work in progress. Current assets expanded from ₹31.90 crores to ₹46.84 crores, driven by higher inventories and short-term loans and advances. Net current assets improved significantly, indicating better liquidity management. The book value per share rose from ₹22.58 in FY20 to ₹42.01 in FY22, signalling enhanced shareholder value.

Cash Flow and Operational Efficiency

Cash flow statements indicate that Indo US Bio-Tech generated positive cash flow from operating activities in FY22, amounting to ₹2 crores, a notable improvement from negligible cash flows in previous years. However, investing activities reflected a cash outflow of ₹5 crores in FY22, likely due to capital expenditure. Financing activities contributed ₹2 crores, supporting the company's funding needs. Despite these movements, the net cash inflow/outflow remained balanced, with closing cash and cash equivalents stable at zero, suggesting tight cash management.

Overall, the company has shown consistent growth in revenue and profitability, alongside a stronger financial position and improved operational cash flows. While certain cost components and borrowings have increased, the enhanced margins and shareholder equity provide a positive outlook for Indo US Bio-Tech's financial health.

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