RAINBOW CHILDRENS MEDICARE 2023-24 Annual Report Analysis

Wed, 10 Jul

RAINBOW CHILDRENS MEDICARE 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.

RAINBOW CHILDRENS MEDICARE Income Statement Analysis

• Operating income during the year rose 10.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.3% in FY24 as against 34.0% in FY23.
• Depreciation charges increased by 24.2% and finance costs increased by 7.1% YoY, respectively.
• Other income grew by 20.1% YoY.
• Net profit for the year grew by 2.8% YoY.
• Net profit margins during the year declined from 18.1% in FY23 to 16.8% in FY24.

RAINBOW CHILDRENS MEDICARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,736	12,969	10.5%
Other income	Rs m	309	371	20.1%
Total Revenues	Rs m	12,044	13,340	10.8%
Gross profit	Rs m	3,996	4,324	8.2%
Depreciation	Rs m	903	1,121	24.2%
Interest	Rs m	584	625	7.1%
Profit before tax	Rs m	2,818	2,948	4.6%
Tax	Rs m	694	765	10.3%
Profit after tax	Rs m	2,124	2,183	2.8%
Gross profit margin	%	34.0	33.3
Effective tax rate	%	24.6	26.0
Net profit margin	%	18.1	16.8

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RAINBOW CHILDRENS MEDICARE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 7.6%.
• Current assets rose 30% and stood at Rs 6 billion, while fixed assets rose 20% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 23%.

RAINBOW CHILDRENS MEDICARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,599	12,493	17.9
Current Liabilities	Rs m	1,389	1,495	7.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,448	21,444	22.9
Current assets	Rs m	4,779	6,216	30.1
Fixed Assets	Rs m	12,669	15,227	20.2
Total Assets	Rs m	17,448	21,444	22.9

RAINBOW CHILDRENS MEDICARE Cash Flow Statement Analysis

• RAINBOW CHILDRENS MEDICARE's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -68 million from the Rs 70 million net cash flows seen during FY23.

RAINBOW CHILDRENS MEDICARE 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	3,288	3,214	-2.2%
Cash Flow from Investing Activities	Rs m	-4,652	-2,265	-
Cash Flow from Financing Activities	Rs m	1,434	-1,018	-
Net Cash Flow	Rs m	70	-68	-

Current Valuations for RAINBOW CHILDRENS MEDICARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.5, an improvement from the EPS of Rs 20.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,255.9, stands at 58.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 9.8 times.
• The company's price to cash flow (P/CF) ratio stood at 33.9 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	115.6	127.8
TTM Earnings per share	Rs	20.9	21.5
Diluted earnings per share	Rs	20.9	21.5
Price to Cash Flow	x	24.5	33.9
TTM P/E ratio	x	34.9	58.4
Price / Book Value ratio	x	6.2	9.0
Market Cap	Rs m	65,717	111,878
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for RAINBOW CHILDRENS MEDICARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY24, from 3.4x 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 5.7x during FY24, from 5.8x 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 17.5% during FY24, from 20.0% 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 declined and down at 28.6% during FY24, from 32.1% 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 13.1% during FY24, from 15.5% 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	3.4	4.2
Debtors’ Days	Days	16	20
Interest coverage	x	5.8	5.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.5	13.1
Return on equity	%	20.0	17.5
Return on capital employed	%	32.1	28.6

To see how RAINBOW CHILDRENS MEDICARE has performed over the last 5 years, please visit here.

RAINBOW CHILDRENS MEDICARE Share Price Performance

Over the last one year, RAINBOW CHILDRENS MEDICARE share price has moved up from Rs 1,029.2 to Rs 1,255.9, registering a gain of Rs 226.7 or around 22.0%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for RAINBOW CHILDRENS MEDICARE and quarterly results for RAINBOW CHILDRENS MEDICARE)