BAJAJ HEALTHCARE 2023-24 Annual Report Analysis

Tue, 24 Sep

BAJAJ HEALTHCARE 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.

BAJAJ HEALTHCARE Income Statement Analysis

• Operating income during the year fell 26.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 71.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.8% in FY24 as against 17.3% in FY23.
• Depreciation charges increased by 60.5% and finance costs increased by 68.3% YoY, respectively.
• Other income grew by 446.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 9.8% in FY23 to 3.0% in FY24.

BAJAJ HEALTHCARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,458	4,734	-26.7%
Other income	Rs m	16	87	446.3%
Total Revenues	Rs m	6,474	4,821	-25.5%
Gross profit	Rs m	1,115	320	-71.3%
Depreciation	Rs m	172	276	60.5%
Interest	Rs m	177	297	68.3%
Profit before tax	Rs m	782	-167	NA
Tax	Rs m	147	-23	NA
Profit after tax	Rs m	635	-143	NA
Gross profit margin	%	17.3	6.8
Effective tax rate	%	18.7	14.1
Net profit margin	%	9.8	-3.0

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BAJAJ HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -7.6%.
• Long-term debt down at Rs 386 million as compared to Rs 937 million during FY23, a fall of 58.8%.
• Current assets fell 19% and stood at Rs 4 billion, while fixed assets fell 34% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 9 billion during FY23, thereby witnessing a fall of 17%.

BAJAJ HEALTHCARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,677	2,784	-24.3
Current Liabilities	Rs m	4,352	4,021	-7.6
Long-term Debt	Rs m	937	386	-58.8
Total Liabilities	Rs m	8,993	7,433	-17.3
Current assets	Rs m	5,020	4,045	-19.4
Fixed Assets	Rs m	3,973	2,632	-33.7
Total Assets	Rs m	8,993	7,433	-17.3

BAJAJ HEALTHCARE Cash Flow Statement Analysis

• BAJAJ HEALTHCARE's cash flow from operating activities (CFO) during FY24 stood at Rs 923 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -112 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -966 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -155 million from the Rs 157 million net cash flows seen during FY23.

BAJAJ HEALTHCARE 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	-222	923	-
Cash Flow from Investing Activities	Rs m	-934	-112	-
Cash Flow from Financing Activities	Rs m	1,314	-966	-
Net Cash Flow	Rs m	157	-155	-

Current Valuations for BAJAJ HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.2, an decline from the EPS of Rs 23.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 388.8, stands at -80.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 78.5 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	234.0	171.5
TTM Earnings per share	Rs	23.0	-5.2
Diluted earnings per share	Rs	23.0	-5.2
Price to Cash Flow	x	10.4	78.5
TTM P/E ratio	x	13.2	-80.5
Price / Book Value ratio	x	2.7	3.7
Market Cap	Rs m	9,857	10,433
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for BAJAJ HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.2x 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 deteriorated and stood at 0.4x during FY24, from 5.4x 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 -5.1% during FY24, from 17.3% 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 declined and down at 4.1% during FY24, from 20.8% 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 2.1% during FY24, from 9.0% 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	1.2	1.0
Debtors’ Days	Days	1,097	1,390
Interest coverage	x	5.4	0.4
Debt to equity ratio	x	0.3	0.1
Return on assets	%	9.0	2.1
Return on equity	%	17.3	-5.1
Return on capital employed	%	20.8	4.1

To see how BAJAJ HEALTHCARE has performed over the last 5 years, please visit here.

BAJAJ HEALTHCARE Share Price Performance

Over the last one year, BAJAJ HEALTHCARE share price has moved down from Rs 464.9 to Rs 388.8, registering a loss of Rs 76.1 or around 16.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 44,351.3 (up 0.3%). Over the last one year it has moved up from 27,763.9 to 44,351.3, a gain of 16,587 points (up 59.7%).

Overall, the S&P BSE SENSEX is up 27.3% over the year.

(To know more, check out historical annual results for BAJAJ HEALTHCARE and quarterly results for BAJAJ HEALTHCARE)