Citi Pharma Ltd

Citi Pharma Ltd maintains a conservative capital structure with a debt-to-equity ratio of 0.27, indicating limited leverage relative to shareholder equity. The balance sheet shows total assets of 18.44 billion PKR against total liabilities of 7.57 billion PKR, resulting in total equity of 10.87 billion PKR. Long-term debt stands at 2.95 billion PKR. Liquidity is assessed as medium, supported by a current ratio of 1.3, which suggests adequate short-term asset coverage for liabilities. However, the risk assessment flags that net cash is negative after subtracting total debt, highlighting a reliance on debt financing for operations or investments despite the low leverage ratio.

Profitability metrics indicate modest returns on capital. Return on equity (ROE) is 7.58%, while return on assets (ROA) is 4.47%. The company generated a gross profit of 2.02 billion PKR on revenue of 13.15 billion PKR, resulting in a gross margin of approximately 15.3%. Operating income was 1.60 billion PKR, leading to a net income of 892 million PKR. Without cohort median data provided for direct comparison, these returns must be evaluated against general industry standards for pharmaceutical manufacturers, where capital intensity often moderates ROA. The net income margin of approximately 6.8% reflects the cost structure inherent in the business.

Debt-to-equity ratio of 0.27 is below the cohort median of 0.20, suggesting a conservative leverage profile.

Capital expenditure intensity is in the top quartile, implying lower reinvestment needs compared to most peers.

Cash conversion ratio of -0.39 places the company in the bottom quartile of the pharmaceutical cohort.

The company faces medium liquidity and credit risks, posing potential challenges to financial stability.

Revenue PKR 3.05B, +6,2% YoY; Operating income +264,8% YoY.

• ▍Revenue PKR 3.05B, +6,2% YoY
• ▍Operating income +264,8% YoY
• ▍Net income +40,2% YoY
• ▍Free cash flow +611,9% YoY
• ▍Net margin 7.0%

Revenue PKR 2.87B; Operating income PKR 117.7M.

• ▍Revenue PKR 2.87B
• ▍Operating income PKR 117.7M
• ▍Net margin 5.3%

Revenue PKR 13.15B, +6,0% YoY; Operating income +33,1% YoY.

• ▍Revenue PKR 13.15B, +6,0% YoY
• ▍Operating income +33,1% YoY
• ▍Net income +7,0% YoY
• ▍Free cash flow +218,2% YoY
• ▍Net margin 6.8%

Revenue PKR 12.41B, +0,1% YoY; Operating income +1,7% YoY.

• ▍Revenue PKR 12.41B, +0,1% YoY
• ▍Operating income +1,7% YoY
• ▍Net income +26,7% YoY
• ▍Free cash flow −75,1% YoY
• ▍Net margin 6.7%

Revenue PKR 12.40B, +26,8% YoY; Operating income +19,3% YoY.

• ▍Revenue PKR 12.40B, +26,8% YoY
• ▍Operating income +19,3% YoY
• ▍Net income +0,7% YoY
• ▍Free cash flow +276,6% YoY
• ▍Net margin 5.3%

Revenue PKR 9.78B, +68,8% YoY; Operating income +74,0% YoY.

• ▍Revenue PKR 9.78B, +68,8% YoY
• ▍Operating income +74,0% YoY
• ▍Net income +85,8% YoY
• ▍Free cash flow −218,8% YoY
• ▍Net margin 6.7%