GLOBAL HEALTH 2023-24 Annual Report Analysis

Tue, 27 Aug

GLOBAL HEALTH 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.

GLOBAL HEALTH Income Statement Analysis

• Operating income during the year rose 20.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.7% in FY24 as against 23.5% in FY23.
• Depreciation charges increased by 15.2% and finance costs decreased by 3.0% YoY, respectively.
• Other income grew by 51.5% YoY.
• Net profit for the year grew by 46.6% YoY.
• Net profit margins during the year grew from 12.0% in FY23 to 14.6% in FY24.

GLOBAL HEALTH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,099	32,751	20.9%
Other income	Rs m	493	747	51.5%
Total Revenues	Rs m	27,592	33,498	21.4%
Gross profit	Rs m	6,362	8,089	27.1%
Depreciation	Rs m	1,499	1,727	15.2%
Interest	Rs m	863	838	-3.0%
Profit before tax	Rs m	4,493	6,271	39.6%
Tax	Rs m	1,232	1,490	21.0%
Profit after tax	Rs m	3,261	4,781	46.6%
Gross profit margin	%	23.5	24.7
Effective tax rate	%	27.4	23.8
Net profit margin	%	12.0	14.6

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GLOBAL HEALTH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 7.9%.
• Long-term debt down at Rs 3 billion as compared to Rs 7 billion during FY23, a fall of 61.5%.
• Current assets fell 4% and stood at Rs 15 billion, while fixed assets rose 9% and stood at Rs 27 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 4%.

GLOBAL HEALTH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,231	29,012	19.7
Current Liabilities	Rs m	5,726	6,177	7.9
Long-term Debt	Rs m	7,371	2,835	-61.5
Total Liabilities	Rs m	40,903	42,428	3.7
Current assets	Rs m	15,795	15,087	-4.5
Fixed Assets	Rs m	25,108	27,340	8.9
Total Assets	Rs m	40,903	42,428	3.7

GLOBAL HEALTH Cash Flow Statement Analysis

• GLOBAL HEALTH's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 28.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 billion from the Rs 6 billion net cash flows seen during FY23.

GLOBAL HEALTH 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	6,445	6,121	-5.0%
Cash Flow from Investing Activities	Rs m	-3,423	-4,408	-
Cash Flow from Financing Activities	Rs m	3,456	-5,139	-
Net Cash Flow	Rs m	6,478	-3,426	-

Current Valuations for GLOBAL HEALTH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.8, an improvement from the EPS of Rs 12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,077.0, stands at 60.0 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 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 41.0 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	101.0	122.0
TTM Earnings per share	Rs	12.2	17.8
Diluted earnings per share	Rs	12.1	17.8
Price to Cash Flow	x	29.7	41.0
TTM P/E ratio	x	43.3	60.0
Price / Book Value ratio	x	5.1	9.2
Market Cap	Rs m	124,650	266,675
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for GLOBAL HEALTH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 2.8x 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 8.5x during FY24, from 6.2x 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 16.5% during FY24, from 13.5% 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 22.3% during FY24, from 16.9% 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 improved and stood at 13.2% during FY24, from 10.1% 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	2.8	2.4
Debtors’ Days	Days	26	24
Interest coverage	x	6.2	8.5
Debt to equity ratio	x	0.3	0.1
Return on assets	%	10.1	13.2
Return on equity	%	13.5	16.5
Return on capital employed	%	16.9	22.3

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

GLOBAL HEALTH Share Price Performance

Over the last one year, GLOBAL HEALTH share price has moved up from Rs 703.6 to Rs 1,077.0, registering a gain of Rs 373.4 or around 53.1%.

Overall, the S&P BSE SENSEX is up 24.9% over the year.

(To know more, check out historical annual results for GLOBAL HEALTH and quarterly results for GLOBAL HEALTH)