HEALTHCARE GLOBAL ENTER. 2023-24 Annual Report Analysis

Thu, 12 Sep

HEALTHCARE GLOBAL ENTER. 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.

HEALTHCARE GLOBAL ENTER. Income Statement Analysis

• Operating income during the year rose 12.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.3% in FY24 as against 16.6% in FY23.
• Depreciation charges increased by 6.7% and finance costs increased by 5.1% YoY, respectively.
• Other income declined by 33.0% YoY.
• Net profit for the year grew by 134.5% YoY.
• Net profit margins during the year grew from 1.0% in FY23 to 2.2% in FY24.

HEALTHCARE GLOBAL ENTER. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,914	19,079	12.8%
Other income	Rs m	316	212	-33.0%
Total Revenues	Rs m	17,230	19,291	12.0%
Gross profit	Rs m	2,802	3,296	17.6%
Depreciation	Rs m	1,635	1,744	6.7%
Interest	Rs m	1,035	1,087	5.1%
Profit before tax	Rs m	449	677	50.9%
Tax	Rs m	273	264	-3.1%
Profit after tax	Rs m	176	413	134.5%
Gross profit margin	%	16.6	17.3
Effective tax rate	%	60.7	39.0
Net profit margin	%	1.0	2.2

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HEALTHCARE GLOBAL ENTER. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 30.4%.
• Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY23, a growth of 34.2%.
• Current assets rose 17% and stood at Rs 7 billion, while fixed assets rose 17% and stood at Rs 20 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 17%.

HEALTHCARE GLOBAL ENTER. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,485	8,082	-4.7
Current Liabilities	Rs m	5,703	7,437	30.4
Long-term Debt	Rs m	3,617	4,853	34.2
Total Liabilities	Rs m	23,107	27,004	16.9
Current assets	Rs m	5,803	6,799	17.1
Fixed Assets	Rs m	17,304	20,206	16.8
Total Assets	Rs m	23,107	27,004	16.9

HEALTHCARE GLOBAL ENTER. Cash Flow Statement Analysis

• HEALTHCARE GLOBAL ENTER.'s cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 13.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 69.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -640 million, an improvement of 54% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -52 million from the Rs -215 million net cash flows seen during FY23.

HEALTHCARE GLOBAL ENTER. 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	2,516	2,846	13.1%
Cash Flow from Investing Activities	Rs m	-1,330	-2,257	-
Cash Flow from Financing Activities	Rs m	-1,401	-640	-
Net Cash Flow	Rs m	-215	-52	-

Current Valuations for HEALTHCARE GLOBAL ENTER.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an improvement from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 415.6, stands at 113.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.2 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	121.6	137.0
TTM Earnings per share	Rs	1.3	3.0
Diluted earnings per share	Rs	1.3	3.0
Price to Cash Flow	x	20.2	21.2
TTM P/E ratio	x	207.5	113.0
Price / Book Value ratio	x	4.7	5.7
Market Cap	Rs m	39,585	45,781
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HEALTHCARE GLOBAL ENTER.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.0x 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 1.6x during FY24, from 1.4x 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 improved and stood at 5.1% during FY24, from 2.1% 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 13.6% during FY24, from 12.3% 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 improved and stood at 5.6% during FY24, from 5.2% 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	1.0	0.9
Debtors’ Days	Days	65	56
Interest coverage	x	1.4	1.6
Debt to equity ratio	x	0.4	0.6
Return on assets	%	5.2	5.6
Return on equity	%	2.1	5.1
Return on capital employed	%	12.3	13.6

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

HEALTHCARE GLOBAL ENTER. Share Price Performance

Over the last one year, HEALTHCARE GLOBAL ENTER. share price has moved up from Rs 365.1 to Rs 415.6, registering a gain of Rs 50.6 or around 13.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 44,200.9 (up 0.9%). Over the last one year it has moved up from 28,294.8 to 44,200.9, a gain of 15,906 points (up 56.2%).

Overall, the S&P BSE SENSEX is up 21.6% over the year.

(To know more, check out historical annual results for HEALTHCARE GLOBAL ENTER. and quarterly results for HEALTHCARE GLOBAL ENTER.)