METROPOLIS HEALTHCARE 2023-24 Annual Report Analysis

Thu, 1 Aug

METROPOLIS 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.

METROPOLIS HEALTHCARE Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.8% in FY24 as against 25.4% in FY23.
• Depreciation charges increased by 5.9% and finance costs decreased by 12.4% YoY, respectively.
• Other income declined by 47.8% YoY.
• Net profit for the year declined by 10.4% YoY.
• Net profit margins during the year declined from 12.5% in FY23 to 10.6% in FY24.

METROPOLIS HEALTHCARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,482	12,077	5.2%
Other income	Rs m	175	91	-47.8%
Total Revenues	Rs m	11,657	12,168	4.4%
Gross profit	Rs m	2,911	2,879	-1.1%
Depreciation	Rs m	892	945	5.9%
Interest	Rs m	319	279	-12.4%
Profit before tax	Rs m	1,875	1,747	-6.8%
Tax	Rs m	441	462	4.8%
Profit after tax	Rs m	1,434	1,285	-10.4%
Gross profit margin	%	25.4	23.8
Effective tax rate	%	23.5	26.5
Net profit margin	%	12.5	10.6

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

METROPOLIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -9.0%.
• Current assets rose 1% and stood at Rs 3 billion, while fixed assets rose 2% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 2%.

METROPOLIS HEALTHCARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,809	10,884	11.0
Current Liabilities	Rs m	3,028	2,755	-9.0
Long-term Debt	Rs m	286	0	-100.0
Total Liabilities	Rs m	17,102	17,482	2.2
Current assets	Rs m	3,406	3,454	1.4
Fixed Assets	Rs m	13,696	14,028	2.4
Total Assets	Rs m	17,102	17,482	2.2

METROPOLIS HEALTHCARE Cash Flow Statement Analysis

• METROPOLIS HEALTHCARE's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 6.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -894 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 38% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -62 million from the Rs 29 million net cash flows seen during FY23.

METROPOLIS 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	2,471	2,641	6.9%
Cash Flow from Investing Activities	Rs m	468	-894	-
Cash Flow from Financing Activities	Rs m	-2,923	-1,812	-
Net Cash Flow	Rs m	29	-62	-

Current Valuations for METROPOLIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an decline from the EPS of Rs 28.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,110.0, stands at 84.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.9 times, while the price to sales ratio stands at 9.0 times.
• The company's price to cash flow (P/CF) ratio stood at 34.9 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	224.2	235.7
TTM Earnings per share	Rs	28.0	25.1
Diluted earnings per share	Rs	28.0	25.1
Price to Cash Flow	x	27.5	34.9
TTM P/E ratio	x	44.6	84.2
Price / Book Value ratio	x	9.8	7.1
Market Cap	Rs m	95,801	77,812
Dividends per share (Unadj.)	Rs	8.0	4.0

Ratio Analysis for METROPOLIS HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.1x 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 7.3x during FY24, from 6.9x 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 11.8% during FY24, from 14.6% 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 18.6% during FY24, from 21.7% 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 8.9% during FY24, from 10.2% 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	1.1	1.3
Debtors’ Days	Days	387	382
Interest coverage	x	6.9	7.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	8.9
Return on equity	%	14.6	11.8
Return on capital employed	%	21.7	18.6

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

METROPOLIS HEALTHCARE Share Price Performance

Over the last one year, METROPOLIS HEALTHCARE share price has moved up from Rs 1,381.6 to Rs 2,110.0, registering a gain of Rs 728.5 or around 52.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,658.4 (up 0.3%). Over the last one year it has moved up from 27,644.7 to 40,658.4, a gain of 13,014 points (up 47.1%).

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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