FORTIS HEALTHCARE 2017-18 Annual Report Analysis

Sat, 31 Mar

FORTIS HEALTHCARE 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.

FORTIS HEALTHCARE Income Statement Analysis

• Operating income during the year fell 0.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 273.1% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 13.3% in FY18 as against 7.7% in FY17.
• Depreciation charges increased by 7.6% and finance costs increased by 12.4% YoY, respectively.
• Other income declined by 15.8% YoY.
• Net profit for the year grew by 14485.5% YoY.
• Net profit margins during the year declined from 0.1% in FY17 to 21.7% in FY18.

FORTIS HEALTHCARE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	45,737	45,608	-0.3%
Other income	Rs m	1,660	1,397	-15.8%
Total Revenues	Rs m	47,397	47,005	-0.8%
Gross profit	Rs m	3,512	-6,079	-273.1%
Depreciation	Rs m	2,222	2,390	7.6%
Interest	Rs m	2,294	2,578	12.4%
Profit before tax	Rs m	656	-9,649	-1,570.3%
Tax	Rs m	724	227	-68.7%
Profit after tax	Rs m	-68	-9,876	14,485.5%
Gross profit margin	%	7.7	-13.3
Effective tax rate	%	110.3	-2.3
Net profit margin	%	-0.1	-21.7

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FORTIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 21 billion as compared to Rs 19 billion in FY17, thereby witnessing an increase of 10.8%.
• Long-term debt down at Rs 9 billion as compared to Rs 13 billion during FY17, a fall of 25.9%.
• Current assets fell 28% and stood at Rs 13 billion, while fixed assets fell 9% and stood at Rs 70 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 83 billion as against Rs 95 billion during FY17, thereby witnessing a fall of 12%.

FORTIS HEALTHCARE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	51,261	40,336	-21.3
Current Liabilities	Rs m	19,265	21,340	10.8
Long-term Debt	Rs m	12,787	9,481	-25.9
Total Liabilities	Rs m	94,838	83,266	-12.2
Current assets	Rs m	17,748	12,815	-27.8
Fixed Assets	Rs m	77,090	70,451	-8.6
Total Assets	Rs m	94,838	83,266	-12.2

FORTIS HEALTHCARE Cash Flow Statement Analysis

• FORTIS HEALTHCARE'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 -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -5 billion from the Rs 2 billion net cash flows seen during FY17.

FORTIS HEALTHCARE 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	9,665	4,929	-49.0%
Cash Flow from Investing Activities	Rs m	-10,016	-3,354	-
Cash Flow from Financing Activities	Rs m	2,594	-6,720	-
Net Cash Flow	Rs m	2,245	-5,126	-

Current Valuations for FORTIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -19.0, an decline from the EPS of Rs -0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 123.4, stands at -10.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at -11.7 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	88.3	87.9
TTM Earnings per share	Rs	-0.1	-19.0
Diluted earnings per share	Rs	-0.1	-13.1
Price to Cash Flow	x	63.1	-11.7
TTM P/E ratio	x	26.9	-10.7
Price / Book Value ratio	x	1.8	2.2
Market Cap	Rs m	89,981	87,536
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FORTIS HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY18, from 0.9x 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 -2.7x during FY18, from 1.3x 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 -24.5% during FY18, from -0.1% 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 declined and down at -14.2% during FY18, from 4.6% 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 -8.8% during FY18, from 2.3% 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	0.9	0.6
Debtors’ Days	Days	377	376
Interest coverage	x	1.3	-2.7
Debt to equity ratio	x	0.2	0.2
Return on assets	%	2.3	-8.8
Return on equity	%	-0.1	-24.5
Return on capital employed	%	4.6	-14.2

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

FORTIS HEALTHCARE Share Price Performance

Over the last one year, FORTIS HEALTHCARE share price has moved down from Rs 180.1 to Rs 123.4, registering a loss of Rs 56.7 or around 31.5%.

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

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

Read: Latest Annual Report Analysis of FORTIS HEALTHCARE