FORTIS HEALTHCARE 2018-19 Annual Report Analysis

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FORTIS HEALTHCARE 2018-19 Annual Report Analysis
Fri, 18 Oct

FORTIS HEALTHCARE has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

FORTIS HEALTHCARE Income Statement Analysis

  • Operating income during the year fell 2.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 80.7% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 13.2% in FY19 as against 7.2% in FY18.
  • Depreciation charges decreased by 2.5% and finance costs increased by 30.7% YoY, respectively.
  • Other income declined by 33.9% YoY.
  • Net profit for the year declined by 76.1% YoY.
  • Net profit margins during the year grew from 19.9% in FY18 to 4.9% in FY19.

FORTIS HEALTHCARE Income Statement 2018-19

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
Net SalesRs m45,60844,694-2.0%
Other incomeRs m1,397924-33.9%
Total RevenuesRs m47,00545,618-3.0%
Gross profitRs m3,2635,89680.7%
DepreciationRs m2,3902,329-2.5%
InterestRs m2,5783,36830.7%
Profit before taxRs m-3071,123-465.3%
TaxRs m2271,136401.6%
Profit after taxRs m-9,344-2,237-76.1%
Gross profit margin%7.213.2
Effective tax rate%-73.7101.2
Net profit margin%-19.9-4.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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FORTIS HEALTHCARE Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 36 billion as compared to Rs 21 billion in FY18, thereby witnessing an increase of 68.2%.
  • Long-term debt down at Rs 7 billion as compared to Rs 9 billion during FY18, a fall of 28.8%.
  • Current assets rose 30% and stood at Rs 17 billion, while fixed assets fell 91% and stood at Rs 91 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 120 billion as against Rs 86 billion during FY18, thereby witnessing a growth of 39%.

FORTIS HEALTHCARE Balance Sheet as on March 2019

No. of Mths Year Ending12 Mar-18*12 Mar-19*% Change
NetworthRs m40,61766,00862.5
 
Current LiabilitiesRs m21,34835,91068.2
Long-term DebtRs m9,4816,746-28.8
Total LiabilitiesRs m86,217119,51338.6
 
Current assetsRs m12,81516,66630.0
Fixed AssetsRs m 981,87091,168-90.7
Total AssetsRs m86,217119,51338.6
* 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 FY19 stood at Rs -2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -33 billion, an improvement of 890.8% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 43 billion, an improvement of 733% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 8 billion from the Rs -5 billion net cash flows seen during FY18.

FORTIS HEALTHCARE Cash Flow Statement 2018-19

ParticularsNo. of months1212% Change
Year EndingMar-18Mar-19
Cash Flow from Operating ActivitiesRs m4,929-1,785-
Cash Flow from Investing ActivitiesRs m-3,354-33,227-
Cash Flow from Financing ActivitiesRs m-6,72142,566-
Net Cash FlowRs m-5,1267,988-
* 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 -3.0, an improvement from the EPS of Rs -18.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 139.5, stands at -14.5 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 700.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Sales per share (Unadj.)Rs87.959.2
TTM Earnings per shareRs-18.0-3.0
Diluted earnings per shareRs-20.2-4.8
Price to Cash Flow x-10.4700.7
TTM P/E ratiox-16.2-14.5
Price / Book Value ratiox2.21.6
Market CapRs m72,32764,535
Dividends per share (Unadj.)Rs0.00.0
* 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 deteriorated and stood at 0.5x during FY19, from 0.6x during FY18. 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 improved and stood at 1.3x during FY19, from 0.9x during FY18. 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 improved and stood at -3.4% during FY19, from -23.0% during FY19. 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 improved and stood at 3.1% during FY19, from -13.1% during FY18. 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 improved and stood at 0.9% during FY19, from -7.8% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending12 Mar-18*12 Mar-19*
Current ratiox0.60.5
Debtors’ DaysDays3844
Interest coveragex0.91.3
Debt to equity ratiox0.20.1
Return on assets%-7.80.9
Return on equity%-23.0-3.4
Return on capital employed%-13.13.1
* 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 133.0 to Rs 139.5, registering a gain of Rs 6.5 or around 4.8%.

Overall, the S&P BSE SENSEX is up 12.8% over the year.

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

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For the quarter ended December 2019, FORTIS HEALTHCARE has posted a net profit of Rs 735 m (up 62.7% YoY). Sales on the other hand came in at Rs 12 bn (up 6.0% YoY). Read on for a complete analysis of FORTIS HEALTHCARE's quarterly results.

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