APOLLO HOSPITALS 2023-24 Annual Report Analysis

Mon, 12 Aug

APOLLO HOSPITALS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

APOLLO HOSPITALS Income Statement Analysis

• Operating income during the year rose 14.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY24 as against 12.3% in FY23.
• Depreciation charges increased by 11.6% and finance costs increased by 18.0% YoY, respectively.
• Other income grew by 17.7% YoY.
• Net profit for the year grew by 3.3% YoY.
• Net profit margins during the year declined from 5.3% in FY23 to 4.8% in FY24.

APOLLO HOSPITALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	166,125	190,592	14.7%
Other income	Rs m	903	1,063	17.7%
Total Revenues	Rs m	167,028	191,655	14.7%
Gross profit	Rs m	20,496	23,926	16.7%
Depreciation	Rs m	6,154	6,870	11.6%
Interest	Rs m	3,808	4,494	18.0%
Profit before tax	Rs m	11,437	13,625	19.1%
Tax	Rs m	2,562	4,455	73.9%
Profit after tax	Rs m	8,875	9,170	3.3%
Gross profit margin	%	12.3	12.6
Effective tax rate	%	22.4	32.7
Net profit margin	%	5.3	4.8

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APOLLO HOSPITALS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 47 billion as compared to Rs 33 billion in FY23, thereby witnessing an increase of 40.3%.
• Long-term debt stood at Rs 22 billion as compared to Rs 19 billion during FY23, a growth of 15.4%.
• Current assets rose 22% and stood at Rs 53 billion, while fixed assets rose 15% and stood at Rs 135 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 188 billion as against Rs 161 billion during FY23, thereby witnessing a growth of 17%.

APOLLO HOSPITALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	61,125	67,630	10.6
Current Liabilities	Rs m	33,249	46,645	40.3
Long-term Debt	Rs m	19,376	22,356	15.4
Total Liabilities	Rs m	160,817	187,939	16.9
Current assets	Rs m	43,370	52,797	21.7
Fixed Assets	Rs m	117,447	135,142	15.1
Total Assets	Rs m	160,817	187,939	16.9

APOLLO HOSPITALS Cash Flow Statement Analysis

• APOLLO HOSPITALS's cash flow from operating activities (CFO) during FY24 stood at Rs 19 billion, an improvement of 39.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -15 billion, an improvement of 76.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 51% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 720 million from the Rs -1 billion net cash flows seen during FY23.

APOLLO HOSPITALS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	13,769	19,202	39.5%
Cash Flow from Investing Activities	Rs m	-8,706	-15,372	-
Cash Flow from Financing Activities	Rs m	-6,330	-3,111	-
Net Cash Flow	Rs m	-1,129	720	-

Current Valuations for APOLLO HOSPITALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.8, an improvement from the EPS of Rs 61.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,558.5, stands at 102.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.9 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 49.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	1,155.4	1,325.6
TTM Earnings per share	Rs	61.7	63.8
Diluted earnings per share	Rs	61.7	63.8
Price to Cash Flow	x	41.2	49.5
TTM P/E ratio	x	69.8	102.8
Price / Book Value ratio	x	9.7	11.7
Market Cap	Rs m	594,327	793,785
Dividends per share (Unadj.)	Rs	15.0	16.0

Ratio Analysis for APOLLO HOSPITALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.3x during FY23. 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 4.0x during FY24, from 4.0x during FY23. 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 13.6% during FY24, from 14.5% during FY24. 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 improved and stood at 20.1% during FY24, from 18.9% during FY23. 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 declined and down at 7.3% during FY24, from 7.9% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.3	1.1
Debtors’ Days	Days	49	48
Interest coverage	x	4.0	4.0
Debt to equity ratio	x	0.3	0.3
Return on assets	%	7.9	7.3
Return on equity	%	14.5	13.6
Return on capital employed	%	18.9	20.1

To see how APOLLO HOSPITALS has performed over the last 5 years, please visit here.

APOLLO HOSPITALS Share Price Performance

Over the last one year, APOLLO HOSPITALS share price has moved up from Rs 4,901.5 to Rs 6,558.5, registering a gain of Rs 1,657.0 or around 33.8%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for APOLLO HOSPITALS and quarterly results for APOLLO HOSPITALS)