ASTER DM HEALTHCARE 2022-23 Annual Report Analysis

Thu, 10 Aug

ASTER DM HEALTHCARE 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.

ASTER DM HEALTHCARE Income Statement Analysis

• Operating income during the year rose 16.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.6% in FY23 as against 15.0% in FY22.
• Depreciation charges increased by 21.8% and finance costs increased by 27.0% YoY, respectively.
• Other income grew by 54.5% YoY.
• Net profit for the year declined by 20.9% YoY.
• Net profit margins during the year declined from 5.9% in FY22 to 4.0% in FY23.

ASTER DM HEALTHCARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	102,533	119,329	16.4%
Other income	Rs m	507	783	54.5%
Total Revenues	Rs m	103,039	120,111	16.6%
Gross profit	Rs m	15,336	16,269	6.1%
Depreciation	Rs m	6,406	7,804	21.8%
Interest	Rs m	3,069	3,897	27.0%
Profit before tax	Rs m	6,369	5,351	-16.0%
Tax	Rs m	358	596	66.5%
Profit after tax	Rs m	6,011	4,755	-20.9%
Gross profit margin	%	15.0	13.6
Effective tax rate	%	5.6	11.1
Net profit margin	%	5.9	4.0

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ASTER DM HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 47 billion as compared to Rs 36 billion in FY22, thereby witnessing an increase of 30.8%.
• Long-term debt down at Rs 13 billion as compared to Rs 15 billion during FY22, a fall of 10.5%.
• Current assets rose 20% and stood at Rs 49 billion, while fixed assets rose 18% and stood at Rs 99 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 148 billion as against Rs 125 billion during FY22, thereby witnessing a growth of 18%.

ASTER DM HEALTHCARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	39,534	44,481	12.5
Current Liabilities	Rs m	35,586	46,553	30.8
Long-term Debt	Rs m	14,664	13,123	-10.5
Total Liabilities	Rs m	125,212	148,356	18.5
Current assets	Rs m	40,965	49,216	20.1
Fixed Assets	Rs m	84,248	99,141	17.7
Total Assets	Rs m	125,212	148,356	18.5

ASTER DM HEALTHCARE Cash Flow Statement Analysis

• ASTER DM HEALTHCARE's cash flow from operating activities (CFO) during FY23 stood at Rs 18 billion, an improvement of 39.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -10 billion, an improvement of 70.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -8 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 657 million from the Rs 648 million net cash flows seen during FY22.

ASTER DM HEALTHCARE 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	13,140	18,340	39.6%
Cash Flow from Investing Activities	Rs m	-5,705	-9,719	-
Cash Flow from Financing Activities	Rs m	-6,860	-8,174	-
Net Cash Flow	Rs m	648	657	1.5%

Current Valuations for ASTER DM HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an decline from the EPS of Rs 12.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 309.1, stands at 32.5 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 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 8.7 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	205.3	238.9
TTM Earnings per share	Rs	12.0	9.5
Diluted earnings per share	Rs	12.0	9.5
Price to Cash Flow	x	7.9	8.7
TTM P/E ratio	x	16.4	32.5
Price / Book Value ratio	x	2.3	2.5
Market Cap	Rs m	92,372	109,418
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASTER DM HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.2x 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 deteriorated and stood at 2.4x during FY23, from 3.1x 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 10.7% during FY23, from 15.2% 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 16.1% during FY23, from 17.4% 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 5.8% during FY23, from 7.3% 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	1.2	1.1
Debtors’ Days	Days	7	7
Interest coverage	x	3.1	2.4
Debt to equity ratio	x	0.4	0.3
Return on assets	%	7.3	5.8
Return on equity	%	15.2	10.7
Return on capital employed	%	17.4	16.1

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

ASTER DM HEALTHCARE Share Price Performance

Over the last one year, ASTER DM HEALTHCARE share price has moved up from Rs 223.1 to Rs 309.1, registering a gain of Rs 86.0 or around 38.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,485.8 (up 0.5%). Over the last one year it has moved up from 23,223.2 to 28,485.8, a gain of 5,263 points (up 22.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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