FDC 2022-23 Annual Report Analysis

Thu, 14 Sep

FDC 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.

FDC Income Statement Analysis

• Operating income during the year rose 16.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.0% in FY23 as against 16.6% in FY22.
• Depreciation charges increased by 4.4% and finance costs increased by 32.3% YoY, respectively.
• Other income declined by 32.7% YoY.
• Net profit for the year declined by 10.3% YoY.
• Net profit margins during the year declined from 14.1% in FY22 to 10.9% in FY23.

FDC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,279	17,838	16.7%
Other income	Rs m	761	512	-32.7%
Total Revenues	Rs m	16,040	18,350	14.4%
Gross profit	Rs m	2,537	2,496	-1.6%
Depreciation	Rs m	373	389	4.4%
Interest	Rs m	31	41	32.3%
Profit before tax	Rs m	2,894	2,578	-10.9%
Tax	Rs m	732	640	-12.6%
Profit after tax	Rs m	2,162	1,938	-10.3%
Gross profit margin	%	16.6	14.0
Effective tax rate	%	25.3	24.8
Net profit margin	%	14.1	10.9

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FDC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 5.7%.
• Long-term debt down at Rs 6 million as compared to Rs 7 million during FY22, a fall of 13.7%.
• Current assets rose 2% and stood at Rs 14 billion, while fixed assets rose 7% and stood at Rs 17 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 32 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 5%.

FDC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	19,568	19,820	1.3
Current Liabilities	Rs m	6,904	7,296	5.7
Long-term Debt	Rs m	7	6	-13.7
Total Liabilities	Rs m	30,379	31,796	4.7
Current assets	Rs m	14,184	14,431	1.7
Fixed Assets	Rs m	16,195	17,347	7.1
Total Assets	Rs m	30,379	31,796	4.7

FDC Cash Flow Statement Analysis

• FDC's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 111 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -138 million from the Rs 73 million net cash flows seen during FY22.

FDC 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	1,617	1,549	-4.2%
Cash Flow from Investing Activities	Rs m	-1,446	111	-
Cash Flow from Financing Activities	Rs m	-98	-1,800	-
Net Cash Flow	Rs m	73	-138	-

Current Valuations for FDC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.7, an decline from the EPS of Rs 12.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 372.0, stands at 26.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 19.5 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	90.5	107.5
TTM Earnings per share	Rs	12.8	11.7
Diluted earnings per share	Rs	13.0	11.7
Price to Cash Flow	x	16.8	19.5
TTM P/E ratio	x	19.7	26.5
Price / Book Value ratio	x	2.8	2.3
Market Cap	Rs m	55,201	45,368
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FDC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY23, from 2.1x 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 64.1x during FY23, from 94.7x 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 9.8% during FY23, from 11.0% 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 13.2% during FY23, from 14.9% 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 6.2% during FY23, from 7.2% 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	2.1	2.0
Debtors’ Days	Days	196	251
Interest coverage	x	94.7	64.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.2	6.2
Return on equity	%	11.0	9.8
Return on capital employed	%	14.9	13.2

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

FDC Share Price Performance

Over the last one year, FDC share price has moved up from Rs 282.2 to Rs 372.0, registering a gain of Rs 89.9 or around 31.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 28,506.1 (up 0.3%). Over the last one year it has moved up from 23,198.0 to 28,506.1, a gain of 5,308 points (up 22.9%).

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

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