NARAYANA HRUDAYALAYA 2023-24 Annual Report Analysis

Mon, 12 Aug

NARAYANA HRUDAYALAYA 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.

NARAYANA HRUDAYALAYA Income Statement Analysis

• Operating income during the year rose 10.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.3% in FY24 as against 21.7% in FY23.
• Depreciation charges increased by 15.3% and finance costs increased by 33.0% YoY, respectively.
• Other income grew by 14.9% YoY.
• Net profit for the year grew by 30.2% YoY.
• Net profit margins during the year grew from 13.4% in FY23 to 15.7% in FY24.

NARAYANA HRUDAYALAYA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	45,248	50,182	10.9%
Other income	Rs m	654	752	14.9%
Total Revenues	Rs m	45,902	50,934	11.0%
Gross profit	Rs m	9,803	11,673	19.1%
Depreciation	Rs m	2,100	2,421	15.3%
Interest	Rs m	841	1,119	33.0%
Profit before tax	Rs m	7,516	8,885	18.2%
Tax	Rs m	1,450	989	-31.8%
Profit after tax	Rs m	6,066	7,896	30.2%
Gross profit margin	%	21.7	23.3
Effective tax rate	%	19.3	11.1
Net profit margin	%	13.4	15.7

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NARAYANA HRUDAYALAYA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 12.4%.
• Long-term debt stood at Rs 12 billion as compared to Rs 6 billion during FY23, a growth of 90.8%.
• Current assets rose 50% and stood at Rs 19 billion, while fixed assets rose 28% and stood at Rs 37 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 56 billion as against Rs 42 billion during FY23, thereby witnessing a growth of 35%.

NARAYANA HRUDAYALAYA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	21,306	28,835	35.3
Current Liabilities	Rs m	9,880	11,104	12.4
Long-term Debt	Rs m	6,264	11,951	90.8
Total Liabilities	Rs m	41,573	56,193	35.2
Current assets	Rs m	12,947	19,461	50.3
Fixed Assets	Rs m	28,626	36,732	28.3
Total Assets	Rs m	41,573	56,193	35.2

NARAYANA HRUDAYALAYA Cash Flow Statement Analysis

• NARAYANA HRUDAYALAYA'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 -15 billion, an improvement of 24.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 billion, an improvement of 457% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 971 million from the Rs -39 million net cash flows seen during FY23.

NARAYANA HRUDAYALAYA 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	10,846	10,666	-1.7%
Cash Flow from Investing Activities	Rs m	-11,741	-14,579	-
Cash Flow from Financing Activities	Rs m	877	4,885	456.7%
Net Cash Flow	Rs m	-39	971	-

Current Valuations for NARAYANA HRUDAYALAYA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.6, an improvement from the EPS of Rs 29.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,220.8, stands at 30.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.7 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	221.4	245.6
TTM Earnings per share	Rs	29.7	38.6
Diluted earnings per share	Rs	29.7	38.6
Price to Cash Flow	x	19.4	21.7
TTM P/E ratio	x	26.1	30.9
Price / Book Value ratio	x	6.7	7.8
Market Cap	Rs m	143,676	223,801
Dividends per share (Unadj.)	Rs	2.5	4.0

Ratio Analysis for NARAYANA HRUDAYALAYA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.3x 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 deteriorated and stood at 8.9x during FY24, from 9.9x 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 27.4% during FY24, from 28.5% 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 declined and down at 24.5% during FY24, from 30.3% 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 declined and down at 16.0% during FY24, from 16.6% 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	1.3	1.8
Debtors’ Days	Days	35	31
Interest coverage	x	9.9	8.9
Debt to equity ratio	x	0.3	0.4
Return on assets	%	16.6	16.0
Return on equity	%	28.5	27.4
Return on capital employed	%	30.3	24.5

To see how NARAYANA HRUDAYALAYA has performed over the last 5 years, please visit here.

NARAYANA HRUDAYALAYA Share Price Performance

Over the last one year, NARAYANA HRUDAYALAYA share price has moved up from Rs 986.3 to Rs 1,220.8, registering a gain of Rs 234.5 or around 23.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 41,087.3 (up 0.0%). Over the last one year it has moved up from 27,952.4 to 41,087.3, a gain of 13,135 points (up 47.0%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for NARAYANA HRUDAYALAYA and quarterly results for NARAYANA HRUDAYALAYA)