Entero Healthcare Solutions (ENTERO) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue from operations rose to ₹33,002.07 million from ₹25,220.65 million; loss after tax narrowed to ₹111.04 million from ₹294.39 million.

• Standalone total income increased to ₹2,302.56 million from ₹1,641.58 million; standalone loss after tax narrowed to ₹124.55 million from ₹408.47 million.

• The board proposed conversion from private to public limited status to enable an IPO and stock-exchange listing, subject to shareholder and statutory approvals.

Financial highlights

• Consolidated total income was ₹33,057.21 million versus ₹25,265.48 million; total expenses were ₹33,094.09 million versus ₹25,463.59 million.

• Consolidated loss before tax improved to ₹36.88 million from ₹198.11 million; loss for the year was ₹111.04 million versus ₹294.39 million.

• Standalone revenue from operations was ₹1,776.90 million versus ₹1,372.86 million; other income rose to ₹525.66 million from ₹268.72 million, including ₹478.90 million of interest on intercorporate deposits.

• Standalone finance costs increased to ₹113.04 million from ₹52.90 million, while employee benefits expense rose to ₹435.94 million from ₹379.20 million.

• Consolidated operating cash flow was negative ₹453.15 million versus negative ₹352.65 million; cash and cash equivalents ended at ₹253.62 million versus ₹465.08 million.

Outlook and guidance

• An IPO and listing on one or more stock exchanges were proposed; Articles of Association would be revised to meet listing requirements, with Part B intended to cease upon filing the Red Herring Prospectus.

• A definitive agreement signed June 28, 2023 provides for acquisition of RS Enterprises (Bangalore) Private Limited’s pharma-products trading business as a going concern through a slump sale.

• Generic-medicine business under the Curever brand is being scaled down because of limited market prospects and significant external competition.