SHILPA MEDICARE 2023-24 Annual Report Analysis

Wed, 28 Aug

SHILPA 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.

SHILPA MEDICARE Income Statement Analysis

• Operating income during the year fell 70.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 86.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.8% in FY24 as against 8.0% in FY23.
• Depreciation charges decreased by 48.1% and finance costs decreased by 70.6% YoY, respectively.
• Other income grew by 197.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.9% in FY23 to 8.7% in FY24.

SHILPA MEDICARE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,501	3,098	-70.5%
Other income	Rs m	314	933	197.1%
Total Revenues	Rs m	10,815	4,031	-62.7%
Gross profit	Rs m	845	116	-86.2%
Depreciation	Rs m	955	496	-48.1%
Interest	Rs m	587	173	-70.6%
Profit before tax	Rs m	-383	381	NA
Tax	Rs m	-74	112	NA
Profit after tax	Rs m	-309	269	NA
Gross profit margin	%	8.0	3.8
Effective tax rate	%	19.2	29.3
Net profit margin	%	-2.9	8.7

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

SHILPA MEDICARE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -71.1%.
• Long-term debt down at Rs 162 million as compared to Rs 3 billion during FY23, a fall of 94.4%.
• Current assets fell 51% and stood at Rs 4 billion, while fixed assets fell 4% and stood at Rs 20 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 29 billion during FY23, thereby witnessing a fall of 17%.

SHILPA MEDICARE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,833	21,427	20.2
Current Liabilities	Rs m	7,829	2,263	-71.1
Long-term Debt	Rs m	2,888	162	-94.4
Total Liabilities	Rs m	29,024	24,186	-16.7
Current assets	Rs m	7,680	3,769	-50.9
Fixed Assets	Rs m	21,344	20,417	-4.3
Total Assets	Rs m	29,024	24,186	-16.7

SHILPA MEDICARE Cash Flow Statement Analysis

• SHILPA MEDICARE's cash flow from operating activities (CFO) during FY24 stood at Rs 80 million 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 -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 8 million from the Rs -65 million net cash flows seen during FY23.

SHILPA 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	2,262	80	-96.4%
Cash Flow from Investing Activities	Rs m	-2,785	1,558	-
Cash Flow from Financing Activities	Rs m	458	-1,631	-
Net Cash Flow	Rs m	-65	8	-

Current Valuations for SHILPA MEDICARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs -3.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 769.9, stands at 146.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 21.6 times.
• The company's price to cash flow (P/CF) ratio stood at 39.5 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	121.0	35.7
TTM Earnings per share	Rs	-3.6	3.1
Diluted earnings per share	Rs	-3.2	2.8
Price to Cash Flow	x	34.7	39.5
TTM P/E ratio	x	-82.7	146.3
Price / Book Value ratio	x	1.8	1.4
Market Cap	Rs m	31,485	30,246
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHILPA MEDICARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.0x 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 3.2x during FY24, from 0.3x 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 1.3% during FY24, from -1.7% 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 2.6% during FY24, from 1.0% 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 1.8% during FY24, from 1.0% 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	1.0	1.7
Debtors’ Days	Days	1,127	1,695
Interest coverage	x	0.3	3.2
Debt to equity ratio	x	0.2	0.0
Return on assets	%	1.0	1.8
Return on equity	%	-1.7	1.3
Return on capital employed	%	1.0	2.6

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

SHILPA MEDICARE Share Price Performance

Over the last one year, SHILPA MEDICARE share price has moved up from Rs 367.7 to Rs 769.9, registering a gain of Rs 402.3 or around 109.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 42,541.2 (up 0.5%). Over the last one year it has moved up from 27,859.6 to 42,541.2, a gain of 14,682 points (up 52.7%).

Overall, the S&P BSE SENSEX is up 26.1% over the year.

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