MEDICO INTERCONTINENTAL 2022-23 Annual Report Analysis

Mon, 5 Jun

MEDICO INTERCONTINENTAL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

MEDICO INTERCONTINENTAL Income Statement Analysis

• Operating income during the year fell 34.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 57.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.4% in FY23 as against 6.7% in FY22.
• Depreciation charges decreased by 57.6% and finance costs decreased by 58.0% YoY, respectively.
• Other income grew by 124.8% YoY.
• Net profit for the year declined by 45.0% YoY.
• Net profit margins during the year declined from 4.2% in FY22 to 3.5% in FY23.

MEDICO INTERCONTINENTAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	743	489	-34.2%
Other income	Rs m	3	7	124.8%
Total Revenues	Rs m	746	496	-33.5%
Gross profit	Rs m	50	21	-57.2%
Depreciation	Rs m	2	1	-57.6%
Interest	Rs m	9	4	-58.0%
Profit before tax	Rs m	42	24	-43.8%
Tax	Rs m	11	7	-40.4%
Profit after tax	Rs m	31	17	-45.0%
Gross profit margin	%	6.7	4.4
Effective tax rate	%	26.7	28.3
Net profit margin	%	4.2	3.5

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MEDICO INTERCONTINENTAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 81 million as compared to Rs 130 million in FY22, thereby witnessing an decrease of -38.0%.
• Long-term debt down at Rs 19 million as compared to Rs 62 million during FY22, a fall of 69.0%.
• Current assets rose 19% and stood at Rs 337 million, while fixed assets rose 188% and stood at Rs 106 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 443 million as against Rs 319 million during FY22, thereby witnessing a growth of 39%.

MEDICO INTERCONTINENTAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	126	343	171.5
Current Liabilities	Rs m	130	81	-38.0
Long-term Debt	Rs m	62	19	-69.0
Total Liabilities	Rs m	319	443	38.8
Current assets	Rs m	283	337	19.4
Fixed Assets	Rs m	37	106	187.5
Total Assets	Rs m	319	443	38.8

MEDICO INTERCONTINENTAL Cash Flow Statement Analysis

• MEDICO INTERCONTINENTAL's cash flow from operating activities (CFO) during FY23 stood at Rs -119 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -50 million, an improvement of 286.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 206 million, an improvement of 1,818% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 37 million from the Rs 14 million net cash flows seen during FY22.

MEDICO INTERCONTINENTAL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	38	-119	-
Cash Flow from Investing Activities	Rs m	-13	-50	-
Cash Flow from Financing Activities	Rs m	-12	206	-
Net Cash Flow	Rs m	14	37	171.4%

Current Valuations for MEDICO INTERCONTINENTAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.7, an decline from the EPS of Rs 9.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 73.3, stands at 21.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 36.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	228.5	48.9
TTM Earnings per share	Rs	9.5	1.7
Diluted earnings per share	Rs	3.1	1.7
Price to Cash Flow	x	17.6	36.9
TTM P/E ratio	x	18.8	21.2
Price / Book Value ratio	x	1.1	1.9
Market Cap	Rs m	143	661
Dividends per share (Unadj.)	Rs	0.0	0.1

Ratio Analysis for MEDICO INTERCONTINENTAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY23, from 2.2x during FY22. 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 7.5x during FY23, from 5.8x during FY22. 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 5.0% during FY23, from 24.5% during FY23. 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 7.6% during FY23, from 27.0% during FY22. 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 4.7% during FY23, from 12.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.2	4.2
Debtors’ Days	Days	842	1,861
Interest coverage	x	5.8	7.5
Debt to equity ratio	x	0.5	0.1
Return on assets	%	12.4	4.7
Return on equity	%	24.5	5.0
Return on capital employed	%	27.0	7.6

To see how MEDICO INTERCONTINENTAL has performed over the last 5 years, please visit here.

MEDICO INTERCONTINENTAL Share Price Performance

Over the last one year, MEDICO INTERCONTINENTAL share price has moved up from Rs 26.5 to Rs 73.3, registering a gain of Rs 46.8 or around 176.4%.

Overall, the S&P BSE SENSEX is up 13.5% over the year.

(To know more, check out historical annual results for MEDICO INTERCONTINENTAL and quarterly results for MEDICO INTERCONTINENTAL)