BAJAJ HEALTHCARE 2022-23 Annual Report Analysis

Tue, 3 Oct

BAJAJ 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.

BAJAJ HEALTHCARE Income Statement Analysis

• Operating income during the year fell 1.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.9% in FY23 as against 17.5% in FY22.
• Depreciation charges increased by 55.1% and finance costs increased by 79.9% YoY, respectively.
• Other income grew by 10.7% YoY.
• Net profit for the year declined by 39.7% YoY.
• Net profit margins during the year declined from 10.5% in FY22 to 6.4% in FY23.

BAJAJ HEALTHCARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,799	6,733	-1.0%
Other income	Rs m	14	16	10.7%
Total Revenues	Rs m	6,813	6,749	-0.9%
Gross profit	Rs m	1,187	1,070	-9.9%
Depreciation	Rs m	176	274	55.1%
Interest	Rs m	128	230	79.9%
Profit before tax	Rs m	897	582	-35.1%
Tax	Rs m	183	152	-17.0%
Profit after tax	Rs m	714	430	-39.7%
Gross profit margin	%	17.5	15.9
Effective tax rate	%	20.4	26.1
Net profit margin	%	10.5	6.4

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BAJAJ HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 35.4%.
• Long-term debt stood at Rs 937 million as compared to Rs 663 million during FY22, a growth of 41.2%.
• Current assets rose 28% and stood at Rs 5 billion, while fixed assets rose 21% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 25%.

BAJAJ HEALTHCARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,285	3,677	11.9
Current Liabilities	Rs m	3,221	4,361	35.4
Long-term Debt	Rs m	663	937	41.2
Total Liabilities	Rs m	7,211	9,015	25.0
Current assets	Rs m	3,983	5,097	28.0
Fixed Assets	Rs m	3,228	3,917	21.4
Total Assets	Rs m	7,211	9,015	25.0

BAJAJ HEALTHCARE Cash Flow Statement Analysis

• BAJAJ HEALTHCARE's cash flow from operating activities (CFO) during FY23 stood at Rs -223 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -934 million, an improvement of 24.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 113% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 157 million from the Rs -123 million net cash flows seen during FY22.

BAJAJ 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	7	-223	-
Cash Flow from Investing Activities	Rs m	-748	-934	-
Cash Flow from Financing Activities	Rs m	618	1,315	112.6%
Net Cash Flow	Rs m	-123	157	-

Current Valuations for BAJAJ HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.6, an decline from the EPS of Rs 25.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 474.3, stands at 34.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.0 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	246.3	243.9
TTM Earnings per share	Rs	25.9	15.6
Diluted earnings per share	Rs	25.9	15.6
Price to Cash Flow	x	10.6	14.0
TTM P/E ratio	x	13.2	34.4
Price / Book Value ratio	x	5.6	2.7
Market Cap	Rs m	18,328	9,857
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for BAJAJ HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 3.5x during FY23, from 8.0x 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 11.7% during FY23, from 21.7% 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 17.6% during FY23, from 26.0% 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 7.3% during FY23, from 11.7% 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	1.2
Debtors’ Days	Days	991	1,233
Interest coverage	x	8.0	3.5
Debt to equity ratio	x	0.2	0.3
Return on assets	%	11.7	7.3
Return on equity	%	21.7	11.7
Return on capital employed	%	26.0	17.6

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

BAJAJ HEALTHCARE Share Price Performance

Over the last one year, BAJAJ HEALTHCARE share price has moved up from Rs 348.0 to Rs 474.3, registering a gain of Rs 126.3 or around 36.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,484.6 (down 0.0%). Over the last one year it has moved up from 23,528.5 to 28,484.6, a gain of 4,956 points (up 21.1%).

Overall, the S&P BSE SENSEX is up 15.7% over the year.

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