FORTIS HEALTHCARE 2017-18 Annual Report Analysis

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FORTIS HEALTHCARE 2017-18 Annual Report Analysis
Thu, 20 Dec

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 22.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.0% 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 declined by 295.0% YoY.
  • Net profit margins during the year declined from 10.1% in FY17 to 19.9% 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 3,529 2,731 -22.6%
Depreciation Rs m 2,222 2,390 7.6%
Interest Rs m 2,294 2,578 12.4%
Profit before tax Rs m 673 -839 -224.7%
Tax Rs m 724 227 -68.7%
Profit after tax Rs m 4,793 -9,344 -295.0%
Gross profit margin % 7.7 6.0
Effective tax rate % 107.6 -27.0
Net profit margin % 10.1 -19.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 8% and stood at Rs 52 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 86 billion as against Rs 97 billion during FY17, thereby witnessing a fall of 11%.

FORTIS HEALTHCARE Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 51,435 40,617 -21.0
 
Current Liabilities Rs m 19,265 21,348 10.8
Long-term Debt Rs m 12,787 9,481 -25.9
Total Liabilities Rs m 97,170 86,217 -11.3
 
Current assets Rs m 17,748 12,815 -27.8
Fixed Assets Rs m 56,872 52,181 -8.2
Total Assets Rs m 97,170 86,217 -11.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



FORTIS HEALTHCARE Cash Flow Statement Analysis

  • FORTIS HEALTHCARE's cash flow from operating activities (CFO) during FY18 stood at Rs 6 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 5,536 -42.7%
Cash Flow from Investing Activities Rs m -10,016 -3,331 -
Cash Flow from Financing Activities Rs m 2,594 -7,331 -
Net Cash Flow Rs m 2,245 -5,126 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for FORTIS HEALTHCARE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -18.0, an decline from the EPS of Rs 9.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 137.1, stands at -5.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.9 times.
  • The company's price to cash flow (P/CF) ratio stood at -8.5 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 9.3 -18.0
Diluted earnings per share Rs 10.4 -20.2
Price to Cash Flow x 33.0 -8.5
TTM P/E ratio x -6.5 -5.8
Price / Book Value ratio x 1.8 2.2
Market Cap Rs m 70,981 63,447
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for FORTIS HEALTHCARE

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved 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 0.7x 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 -23.0% during FY18, from 9.3% 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 -13.1% during FY18, from 12.2% 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 -7.8% during FY18, from 7.3% 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 38 38
Interest coverage x 1.3 0.7
Debt to equity ratio x 0.2 0.2
Return on assets % 7.3 -7.8
Return on equity % 9.3 -23.0
Return on capital employed % 12.2 -13.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 up from Rs 140.8 to Rs 137.1, registering a loss of Rs 3.7 or around 2.6%.

Overall, the S&P BSE SENSEX is up 7.5% over the year.

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

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