FORTIS HEALTHCARE 2023-24 Annual Report Analysis

Tue, 16 Jul

FORTIS 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.

FORTIS HEALTHCARE Income Statement Analysis

• Operating income during the year rose 9.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.8% in FY24 as against 19.0% in FY23.
• Depreciation charges increased by 8.5% and finance costs increased by 1.4% YoY, respectively.
• Other income declined by 38.0% YoY.
• Net profit for the year grew by 1.9% YoY.
• Net profit margins during the year declined from 10.1% in FY23 to 9.4% in FY24.

FORTIS HEALTHCARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	62,976	68,929	9.5%
Other income	Rs m	617	383	-38.0%
Total Revenues	Rs m	63,593	69,312	9.0%
Gross profit	Rs m	11,968	12,932	8.1%
Depreciation	Rs m	3,157	3,425	8.5%
Interest	Rs m	1,291	1,309	1.4%
Profit before tax	Rs m	8,137	8,580	5.4%
Tax	Rs m	1,807	2,127	17.7%
Profit after tax	Rs m	6,330	6,452	1.9%
Gross profit margin	%	19.0	18.8
Effective tax rate	%	22.2	24.8
Net profit margin	%	10.1	9.4

Don't Miss: Key Information for Long-term Investors

FORTIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 32 billion as compared to Rs 13 billion in FY23, thereby witnessing an increase of 141.3%.
• Long-term debt stood at Rs 7 billion as compared to Rs 6 billion during FY23, a growth of 29.5%.
• Current assets rose 23% and stood at Rs 14 billion, while fixed assets rose 8% and stood at Rs 116 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 130 billion as against Rs 121 billion during FY23, thereby witnessing a growth of 7%.

FORTIS HEALTHCARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	72,405	76,611	5.8
Current Liabilities	Rs m	13,136	31,702	141.3
Long-term Debt	Rs m	5,722	7,409	29.5
Total Liabilities	Rs m	120,893	129,714	7.3
Current assets	Rs m	11,503	14,202	23.5
Fixed Assets	Rs m	106,830	115,508	8.1
Total Assets	Rs m	120,893	129,714	7.3

FORTIS HEALTHCARE Cash Flow Statement Analysis

• FORTIS HEALTHCARE's cash flow from operating activities (CFO) during FY24 stood at Rs 11 billion, an improvement of 33.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -9 billion, an improvement of 137.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -865 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -215 million net cash flows seen during FY23.

FORTIS 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	8,222	11,001	33.8%
Cash Flow from Investing Activities	Rs m	-3,737	-8,864	-
Cash Flow from Financing Activities	Rs m	-4,712	-865	-
Net Cash Flow	Rs m	-215	1,245	-

Current Valuations for FORTIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an improvement from the EPS of Rs 8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 488.8, stands at 58.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 27.5 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	83.4	91.3
TTM Earnings per share	Rs	8.4	8.5
Diluted earnings per share	Rs	8.4	8.5
Price to Cash Flow	x	20.7	27.5
TTM P/E ratio	x	32.1	58.0
Price / Book Value ratio	x	2.8	3.6
Market Cap	Rs m	205,575	272,068
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for FORTIS HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY24, from 0.9x 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 7.6x during FY24, from 7.3x 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 8.4% during FY24, from 8.7% 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 11.8% during FY24, from 12.1% 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 6.0% during FY24, from 6.3% 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	0.9	0.4
Debtors’ Days	Days	337	332
Interest coverage	x	7.3	7.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.3	6.0
Return on equity	%	8.7	8.4
Return on capital employed	%	12.1	11.8

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

FORTIS HEALTHCARE Share Price Performance

Over the last one year, FORTIS HEALTHCARE share price has moved up from Rs 326.7 to Rs 488.8, registering a gain of Rs 162.1 or around 49.6%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

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