ELITE reports nine months net profit of $34.90 million

May 16, 2022

Elite Diagnostic Limited (ELITE) for the nine months ended March 31, 2022 booked a 23% increase in revenue to total $449.51 million compared to $365.56 million for the same period in 2021. Revenue for the third quarter rose by 24% to $160.97 million (2021: $129.47 million).

Direct costs for the nine months increased 9%, closing at $140.31 million, up from $129.22 million reported the prior year, while for the third quarter there was a 1% increase in direct costs, closing at $43.12 million (2021: $42.90 million).

As such, gross profit for the nine months amounted to $309.20 million, a growth of 31% when compared to $236.35 million recorded last year. However, gross profit for the third quarter increased by 36% from $86.57 million in 2021 to $117.85 million for the period under review.

Administrative expenses climbed by 23% for the nine months to total $175.11 million (2021: $141.84 million). Depreciation and amortization increased fell slightly to total $76.16 million down from the $76.54 million booked in 2021. This resulted in profit from operations of $57.93 million for the nine months ended March 31,2022, a 222% increase relative to $17.97 million booked a year ago.

Finance cost for the nine months totalled $18.69 million, a 19% increase when compared to the $15.73 million recorded for the same period last year, while foreign exchange loss amounted to $4.34 million compared to a loss of $5.13 million the prior year.

Profit before tax for the nine months ended March 31, 2022 totalled $34.90 million compared to a loss of $2.89 million recorded last year. Profit before tax for the quarter amounted to $28.16 million relative to a profit before tax of $4.36 million booked for the prior year’s corresponding quarter.

Net profit for the period totalled $34.90 million relative to a net loss of $2.89 million recorded the prior financial year’s corresponding period. Net profit for the quarter amounted to $28.16 million, compared to a net profit of $4.36 million booked for the same quarter in prior year.

Earnings per share (EPS) for the period totalled $0.10, relative to an loss per share (LPS) of $0.01 booked in 2021. EPS for the third quarter amounted to $0.08 relative to a earnings per share (EPS) of $0.01 in corresponding quarter of 2021. The trailing twelve-month EPS amounted to $0.112. The number of shares used in our calculations amounted to 353,400,000 units. ELITE’s stock price closed the trading period on May 13, 2022 at $3.78 with a corresponding P/E ratio of 33.64 times.


Balance Sheet at a glance:

As at March 31, 2022, total assets amounted to $898.56 million, up $208.22 million from the balance of $690.34 million as at the previous year. The increase in total assets was as a result of a 168% increase in ‘Cash and Cash equivalent’ which closed at $176.89 million relative to $66.11 million as at March 31, 2021 and ‘Deposit on equipment’ which closed at $94.55 million (2021: nil).

Shareholders’ equity of $467.26 million was reported (2021: $456.88 million) which resulted in a book value per share of $1.32 (2021: $1.29).


Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.