RAINBOW CHILDRENS MEDICARE 2022-23 Annual Report Analysis

Fri, 9 Jun

RAINBOW CHILDRENS MEDICARE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

RAINBOW CHILDRENS MEDICARE Income Statement Analysis

• Operating income during the year rose 20.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.0% in FY23 as against 31.6% in FY22.
• Depreciation charges increased by 8.4% and finance costs increased by 3.9% YoY, respectively.
• Other income grew by 63.0% YoY.
• Net profit for the year grew by 53.1% YoY.
• Net profit margins during the year grew from 14.2% in FY22 to 18.1% in FY23.

RAINBOW CHILDRENS MEDICARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,738	11,736	20.5%
Other income	Rs m	189	309	63.0%
Total Revenues	Rs m	9,927	12,044	21.3%
Gross profit	Rs m	3,078	3,996	29.8%
Depreciation	Rs m	833	903	8.4%
Interest	Rs m	562	584	3.9%
Profit before tax	Rs m	1,873	2,818	50.4%
Tax	Rs m	487	694	42.6%
Profit after tax	Rs m	1,387	2,124	53.1%
Gross profit margin	%	31.6	34.0
Effective tax rate	%	26.0	24.6
Net profit margin	%	14.2	18.1

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RAINBOW CHILDRENS MEDICARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 15.4%.
• Current assets rose 67% and stood at Rs 5 billion, while fixed assets rose 27% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 18 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 36%.

RAINBOW CHILDRENS MEDICARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,028	10,599	75.8
Current Liabilities	Rs m	1,252	1,444	15.4
Long-term Debt	Rs m	273	0	-100.0
Total Liabilities	Rs m	12,844	17,503	36.3
Current assets	Rs m	2,902	4,836	66.7
Fixed Assets	Rs m	9,941	12,667	27.4
Total Assets	Rs m	12,844	17,503	36.3

RAINBOW CHILDRENS MEDICARE Cash Flow Statement Analysis

• RAINBOW CHILDRENS MEDICARE's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 46.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 165.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 425% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 54 million from the Rs 43 million net cash flows seen during FY22.

RAINBOW CHILDRENS MEDICARE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	2,237	3,272	46.3%
Cash Flow from Investing Activities	Rs m	-1,753	-4,652	-
Cash Flow from Financing Activities	Rs m	-441	1,434	-
Net Cash Flow	Rs m	43	54	25.7%

Current Valuations for RAINBOW CHILDRENS MEDICARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.9, an improvement from the EPS of Rs 14.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 942.5, stands at 45.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.0 times, while the price to sales ratio stands at 8.2 times.
• The company's price to cash flow (P/CF) ratio stood at 21.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	103.5	115.6
TTM Earnings per share	Rs	14.7	20.9
Diluted earnings per share	Rs	13.7	20.9
Price to Cash Flow	x	0.0	21.7
TTM P/E ratio	x	0.0	45.0
Price / Book Value ratio	x	0.0	6.2
Market Cap	Rs m	0	65,717
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for RAINBOW CHILDRENS MEDICARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY23, from 2.3x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 5.8x during FY23, from 4.3x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 20.0% during FY23, from 23.0% during FY23. 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 32.1% during FY23, from 38.6% during FY22. 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 improved and stood at 15.5% during FY23, from 15.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.3	3.3
Debtors’ Days	Days	15	18
Interest coverage	x	4.3	5.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.2	15.5
Return on equity	%	23.0	20.0
Return on capital employed	%	38.6	32.1

To see how RAINBOW CHILDRENS MEDICARE has performed over the last 5 years, please visit here.

RAINBOW CHILDRENS MEDICARE Share Price Performance

Over the last one year, RAINBOW CHILDRENS MEDICARE share price has moved up from Rs 470.3 to Rs 942.5, registering a gain of Rs 472.2 or around 100.4%.

Overall, the S&P BSE SENSEX is up 14.0% over the year.

(To know more, check out historical annual results for RAINBOW CHILDRENS MEDICARE and quarterly results for RAINBOW CHILDRENS MEDICARE)