MAX HEALTHCARE INSTITUTE 2023-24 Annual Report Analysis

Wed, 28 Aug

MAX HEALTHCARE INSTITUTE 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.

MAX HEALTHCARE INSTITUTE Income Statement Analysis

• Operating income during the year rose 18.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.4% in FY24 as against 26.9% in FY23.
• Depreciation charges increased by 5.5% and finance costs decreased by 28.6% YoY, respectively.
• Other income grew by 24.1% YoY.
• Net profit for the year declined by 4.2% YoY.
• Net profit margins during the year declined from 24.2% in FY23 to 19.6% in FY24.

MAX HEALTHCARE INSTITUTE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	45,626	54,060	18.5%
Other income	Rs m	1,523	1,891	24.1%
Total Revenues	Rs m	47,149	55,951	18.7%
Gross profit	Rs m	12,275	14,811	20.7%
Depreciation	Rs m	2,322	2,450	5.5%
Interest	Rs m	839	599	-28.6%
Profit before tax	Rs m	10,637	13,653	28.4%
Tax	Rs m	-398	3,077	NA
Profit after tax	Rs m	11,035	10,576	-4.2%
Gross profit margin	%	26.9	27.4
Effective tax rate	%	-3.7	22.5
Net profit margin	%	24.2	19.6

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MAX HEALTHCARE INSTITUTE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 19.4%.
• Long-term debt stood at Rs 11 billion as compared to Rs 5 billion during FY23, a growth of 113.6%.
• Current assets fell 12% and stood at Rs 17 billion, while fixed assets rose 26% and stood at Rs 103 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 120 billion as against Rs 101 billion during FY23, thereby witnessing a growth of 19%.

MAX HEALTHCARE INSTITUTE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	73,680	83,407	13.2
Current Liabilities	Rs m	10,456	12,487	19.4
Long-term Debt	Rs m	4,966	10,608	113.6
Total Liabilities	Rs m	101,019	119,999	18.8
Current assets	Rs m	19,431	17,062	-12.2
Fixed Assets	Rs m	81,588	102,938	26.2
Total Assets	Rs m	101,019	119,999	18.8

MAX HEALTHCARE INSTITUTE Cash Flow Statement Analysis

• MAX HEALTHCARE INSTITUTE's cash flow from operating activities (CFO) during FY24 stood at Rs 11 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -13 billion, an improvement of 1,156.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs 9 billion net cash flows seen during FY23.

MAX HEALTHCARE INSTITUTE 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	12,841	11,218	-12.6%
Cash Flow from Investing Activities	Rs m	-1,023	-12,855	-
Cash Flow from Financing Activities	Rs m	-2,886	-2,637	-
Net Cash Flow	Rs m	8,934	-3,945	-

Current Valuations for MAX HEALTHCARE INSTITUTE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.9, an decline from the EPS of Rs 11.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 855.8, stands at 78.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.0 times, while the price to sales ratio stands at 15.4 times.
• The company's price to cash flow (P/CF) ratio stood at 49.3 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	47.0	55.6
TTM Earnings per share	Rs	11.4	10.9
Diluted earnings per share	Rs	11.4	10.9
Price to Cash Flow	x	32.1	49.3
TTM P/E ratio	x	38.8	78.9
Price / Book Value ratio	x	5.2	7.7
Market Cap	Rs m	382,786	641,948
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for MAX HEALTHCARE INSTITUTE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.9x 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 23.8x during FY24, from 13.7x 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 12.7% during FY24, from 15.0% 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 15.2% during FY24, from 14.6% 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 9.3% during FY24, from 11.8% 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	1.9	1.4
Debtors’ Days	Days	269	312
Interest coverage	x	13.7	23.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.8	9.3
Return on equity	%	15.0	12.7
Return on capital employed	%	14.6	15.2

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

MAX HEALTHCARE INSTITUTE Share Price Performance

Over the last one year, MAX HEALTHCARE INSTITUTE share price has moved up from Rs 554.6 to Rs 855.8, registering a gain of Rs 301.2 or around 54.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 42,532.5 (up 0.4%). Over the last one year it has moved up from 27,859.6 to 42,532.5, a gain of 14,673 points (up 52.7%).

Overall, the S&P BSE SENSEX is up 26.0% over the year.

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