APOLLO HOSPITALS 2022-23 Annual Report Analysis

Thu, 10 Aug

APOLLO HOSPITALS 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.

APOLLO HOSPITALS Income Statement Analysis

• Operating income during the year rose 13.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.3% in FY23 as against 16.9% in FY22.
• Depreciation charges increased by 2.4% and finance costs increased by 0.6% YoY, respectively.
• Other income grew by 15.5% YoY.
• Net profit for the year declined by 19.4% YoY.
• Net profit margins during the year declined from 7.5% in FY22 to 5.3% in FY23.

APOLLO HOSPITALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	146,626	166,125	13.3%
Other income	Rs m	782	903	15.5%
Total Revenues	Rs m	147,408	167,028	13.3%
Gross profit	Rs m	24,792	20,496	-17.3%
Depreciation	Rs m	6,007	6,154	2.4%
Interest	Rs m	3,786	3,808	0.6%
Profit before tax	Rs m	15,781	11,437	-27.5%
Tax	Rs m	4,770	2,562	-46.3%
Profit after tax	Rs m	11,011	8,875	-19.4%
Gross profit margin	%	16.9	12.3
Effective tax rate	%	30.2	22.4
Net profit margin	%	7.5	5.3

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APOLLO HOSPITALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 33 billion as compared to Rs 24 billion in FY22, thereby witnessing an increase of 36.6%.
• Long-term debt down at Rs 19 billion as compared to Rs 24 billion during FY22, a fall of 20.2%.
• Current assets rose 7% and stood at Rs 43 billion, while fixed assets rose 12% and stood at Rs 117 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 161 billion as against Rs 146 billion during FY22, thereby witnessing a growth of 10%.

APOLLO HOSPITALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	56,144	61,125	8.9
Current Liabilities	Rs m	24,343	33,249	36.6
Long-term Debt	Rs m	24,272	19,376	-20.2
Total Liabilities	Rs m	145,793	160,817	10.3
Current assets	Rs m	40,606	43,370	6.8
Fixed Assets	Rs m	105,187	117,447	11.7
Total Assets	Rs m	145,793	160,817	10.3

APOLLO HOSPITALS Cash Flow Statement Analysis

• APOLLO HOSPITALS's cash flow from operating activities (CFO) during FY23 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -9 billion, an improvement of 2.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion, an improvement of 20% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 2 billion net cash flows seen during FY22.

APOLLO HOSPITALS 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	16,960	13,767	-18.8%
Cash Flow from Investing Activities	Rs m	-8,472	-8,706	-
Cash Flow from Financing Activities	Rs m	-7,916	-6,330	-
Net Cash Flow	Rs m	1,578	-1,131	-

Current Valuations for APOLLO HOSPITALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.7, an decline from the EPS of Rs 76.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,981.2, stands at 80.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 4.3 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-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	1,019.8	1,155.4
TTM Earnings per share	Rs	76.6	61.7
Diluted earnings per share	Rs	76.6	61.7
Price to Cash Flow	x	38.2	39.5
TTM P/E ratio	x	59.0	80.7
Price / Book Value ratio	x	11.2	9.7
Market Cap	Rs m	630,906	594,327
Dividends per share (Unadj.)	Rs	11.8	15.0

Ratio Analysis for APOLLO HOSPITALS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY23, from 1.7x 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 4.0x during FY23, from 5.2x 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 14.5% during FY23, from 19.6% 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 18.9% during FY23, from 24.3% 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 7.9% during FY23, from 10.1% 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	1.7	1.3
Debtors’ Days	Days	44	49
Interest coverage	x	5.2	4.0
Debt to equity ratio	x	0.4	0.3
Return on assets	%	10.1	7.9
Return on equity	%	19.6	14.5
Return on capital employed	%	24.3	18.9

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 4,519.1 to Rs 4,981.2, registering a gain of Rs 462.2 or around 10.2%.

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)