APOLLO HOSPITALS 2017-18 Annual Report Analysis

Sat, 31 Mar

APOLLO HOSPITALS has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

APOLLO HOSPITALS Income Statement Analysis

• Operating income during the year rose 13.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY18 as against 9.7% in FY17.
• Depreciation charges increased by 14.3% and finance costs increased by 14.7% YoY, respectively.
• Other income declined by 23.4% YoY.
• Net profit for the year declined by 33.1% YoY.
• Net profit margins during the year declined from 1.2% in FY17 to 0.7% in FY18.

APOLLO HOSPITALS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	72,557	82,435	13.6%
Other income	Rs m	443	340	-23.4%
Total Revenues	Rs m	73,000	82,774	13.4%
Gross profit	Rs m	7,068	7,914	12.0%
Depreciation	Rs m	3,140	3,590	14.3%
Interest	Rs m	2,574	2,951	14.7%
Profit before tax	Rs m	1,797	1,712	-4.7%
Tax	Rs m	910	1,119	23.0%
Profit after tax	Rs m	887	593	-33.1%
Gross profit margin	%	9.7	9.6
Effective tax rate	%	50.6	65.4
Net profit margin	%	1.2	0.7

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APOLLO HOSPITALS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 16 billion as compared to Rs 10 billion in FY17, thereby witnessing an increase of 62.7%.
• Long-term debt down at Rs 29 billion as compared to Rs 30 billion during FY17, a fall of 1.0%.
• Current assets rose 4% and stood at Rs 22 billion, while fixed assets rose 7% and stood at Rs 72 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 94 billion as against Rs 88 billion during FY17, thereby witnessing a growth of 7%.

APOLLO HOSPITALS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	33,119	32,496	-1.9
Current Liabilities	Rs m	9,634	15,672	62.7
Long-term Debt	Rs m	29,534	29,238	-1.0
Total Liabilities	Rs m	87,998	93,743	6.5
Current assets	Rs m	21,292	22,201	4.3
Fixed Assets	Rs m	66,706	71,542	7.3
Total Assets	Rs m	87,998	93,743	6.5

APOLLO HOSPITALS Cash Flow Statement Analysis

• APOLLO HOSPITALS's cash flow from operating activities (CFO) during FY18 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs 236 million from the Rs -524 million net cash flows seen during FY17.

APOLLO HOSPITALS Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	6,226	5,370	-13.7%
Cash Flow from Investing Activities	Rs m	-11,519	-4,049	-
Cash Flow from Financing Activities	Rs m	4,770	-1,085	-
Net Cash Flow	Rs m	-524	236	-

Current Valuations for APOLLO HOSPITALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an decline from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,062.7, stands at 65.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 38.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	521.5	592.5
TTM Earnings per share	Rs	6.4	4.3
Diluted earnings per share	Rs	6.2	4.1
Price to Cash Flow	x	41.6	38.5
TTM P/E ratio	x	58.8	65.5
Price / Book Value ratio	x	5.4	5.0
Market Cap	Rs m	177,628	161,090
Dividends per share (Unadj.)	Rs	6.0	5.0

Ratio Analysis for APOLLO HOSPITALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY18, from 2.2x during FY17. 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 1.6x during FY18, from 1.7x during FY17. 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 1.8% during FY18, from 2.7% during FY18. 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 7.6% during FY18, from 7.0% during FY17. 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 3.8% during FY18, from 3.9% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	2.2	1.4
Debtors’ Days	Days	38	37
Interest coverage	x	1.7	1.6
Debt to equity ratio	x	0.9	0.9
Return on assets	%	3.9	3.8
Return on equity	%	2.7	1.8
Return on capital employed	%	7.0	7.6

To see how APOLLO HOSPITALS has performed over the last 5 years, please visit here.

APOLLO HOSPITALS Share Price Performance

Over the last one year, APOLLO HOSPITALS share price has moved down from Rs 1,166.7 to Rs 1,062.7, registering a loss of Rs 104.0 or around 8.9%.

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

(To know more, check out historical annual results for APOLLO HOSPITALS and quarterly results for APOLLO HOSPITALS)

Read: Latest Annual Report Analysis of APOLLO HOSPITALS