APOLLO HOSPITALS 2020-21 Annual Report Analysis

Wed, 31 Mar

APOLLO HOSPITALS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

APOLLO HOSPITALS Income Statement Analysis

• Operating income during the year fell 6.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 32.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.3% in FY21 as against 15.8% in FY20.
• Depreciation charges decreased by 7.5% and finance costs decreased by 15.7% YoY, respectively.
• Other income grew by 47.9% YoY.
• Net profit for the year declined by 68.7% YoY.
• Net profit margins during the year declined from 3.9% in FY20 to 1.3% in FY21.

APOLLO HOSPITALS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	112,468	105,600	-6.1%
Other income	Rs m	332	491	47.9%
Total Revenues	Rs m	112,800	106,091	-5.9%
Gross profit	Rs m	17,793	11,939	-32.9%
Depreciation	Rs m	6,197	5,731	-7.5%
Interest	Rs m	5,328	4,492	-15.7%
Profit before tax	Rs m	6,600	2,207	-66.6%
Tax	Rs m	2,251	847	-62.4%
Profit after tax	Rs m	4,349	1,360	-68.7%
Gross profit margin	%	15.8	11.3
Effective tax rate	%	34.1	38.4
Net profit margin	%	3.9	1.3

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APOLLO HOSPITALS Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 20 billion as compared to Rs 23 billion in FY20, thereby witnessing an decrease of -12.8%.
• Long-term debt down at Rs 25 billion as compared to Rs 29 billion during FY20, a fall of 13.3%.
• Current assets rose 38% and stood at Rs 36 billion, while fixed assets fell 9% and stood at Rs 88 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 124 billion as against Rs 123 billion during FY20, thereby witnessing a growth of 1%.

APOLLO HOSPITALS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	33,361	45,962	37.8
Current Liabilities	Rs m	23,373	20,379	-12.8
Long-term Debt	Rs m	28,520	24,735	-13.3
Total Liabilities	Rs m	122,898	124,304	1.1
Current assets	Rs m	26,468	36,413	37.6
Fixed Assets	Rs m	96,430	87,891	-8.9
Total Assets	Rs m	122,898	124,304	1.1

APOLLO HOSPITALS Cash Flow Statement Analysis

• APOLLO HOSPITALS's cash flow from operating activities (CFO) during FY21 stood at Rs 13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -9 billion, an improvement of 202.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -3 billion, an improvement of 63% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 445 million from the Rs 945 million net cash flows seen during FY20.

APOLLO HOSPITALS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	12,929	12,734	-1.5%
Cash Flow from Investing Activities	Rs m	-2,888	-8,723	-
Cash Flow from Financing Activities	Rs m	-9,096	-3,401	-
Net Cash Flow	Rs m	945	445	-52.9%

Current Valuations for APOLLO HOSPITALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an decline from the EPS of Rs 31.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,902.9, stands at 306.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 44.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	808.4	734.5
TTM Earnings per share	Rs	31.3	9.5
Diluted earnings per share	Rs	30.2	9.5
Price to Cash Flow	x	15.5	44.1
TTM P/E ratio	x	37.6	306.8
Price / Book Value ratio	x	6.0	6.8
Market Cap	Rs m	199,050	313,023
Dividends per share (Unadj.)	Rs	6.0	3.0

Ratio Analysis for APOLLO HOSPITALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY21, from 1.1x during FY20. 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 1.5x during FY21, from 2.2x during FY20. 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 3.0% during FY21, from 13.0% during FY21. 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 9.5% during FY21, from 19.3% during FY20. 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 4.7% during FY21, from 7.9% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.8
Debtors’ Days	Days	33	46
Interest coverage	x	2.2	1.5
Debt to equity ratio	x	0.9	0.5
Return on assets	%	7.9	4.7
Return on equity	%	13.0	3.0
Return on capital employed	%	19.3	9.5

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 up from Rs 1,137.9 to Rs 2,902.9, registering a gain of Rs 1,765.1 or around 155.1%.

Overall, the S&P BSE SENSEX is up 74.1% 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