FORTIS HEALTHCARE 2018-19 Annual Report Analysis

Sun, 31 Mar

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 decreased by 100.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 0.1% in FY19 as against 13.3% 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 40.4% YoY.
• Net profit margins during the year grew from 21.7% in FY18 to 13.2% in FY19.

FORTIS HEALTHCARE Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	45,608	44,694	-2.0%
Other income	Rs m	1,397	924	-33.9%
Total Revenues	Rs m	47,005	45,618	-3.0%
Gross profit	Rs m	-6,079	28	-100.5%
Depreciation	Rs m	2,390	2,329	-2.5%
Interest	Rs m	2,578	3,368	30.7%
Profit before tax	Rs m	-9,649	-4,745	-50.8%
Tax	Rs m	227	1,136	401.6%
Profit after tax	Rs m	-9,876	-5,881	-40.4%
Gross profit margin	%	-13.3	0.1
Effective tax rate	%	-2.3	-23.9
Net profit margin	%	-21.7	-13.2

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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 68.3%.
• Long-term debt down at Rs 6 billion as compared to Rs 9 billion during FY18, a fall of 32.8%.
• Current assets rose 30% and stood at Rs 17 billion, while fixed assets rose 39% and stood at Rs 98 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 115 billion as against Rs 83 billion during FY18, thereby witnessing a growth of 38%.

FORTIS HEALTHCARE Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	40,336	65,771	63.1
Current Liabilities	Rs m	21,340	35,910	68.3
Long-term Debt	Rs m	9,481	6,371	-32.8
Total Liabilities	Rs m	83,266	114,859	37.9
Current assets	Rs m	12,815	16,666	30.0
Fixed Assets	Rs m	70,451	98,194	39.4
Total Assets	Rs m	83,266	114,859	37.9

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

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-18	Mar-19
Cash Flow from Operating Activities	Rs m	4,929	-1,785	-
Cash Flow from Investing Activities	Rs m	-3,354	-33,227	-
Cash Flow from Financing Activities	Rs m	-6,720	42,566	-
Net Cash Flow	Rs m	-5,126	7,988	-

Current Valuations for FORTIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.8, an improvement from the EPS of Rs -19.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 135.8, stands at -17.6 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 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at -30.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Sales per share (Unadj.)	Rs	87.9	59.2
TTM Earnings per share	Rs	-19.0	-7.8
Diluted earnings per share	Rs	-13.1	-7.8
Price to Cash Flow	x	-12.4	-30.3
TTM P/E ratio	x	-10.7	-17.6
Price / Book Value ratio	x	2.2	1.6
Market Cap	Rs m	87,536	107,751
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 0.5x 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 -0.4x during FY19, from -2.7x 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 -8.9% during FY19, from -24.5% 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 -1.9% during FY19, from -14.2% 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 -2.2% during FY19, from -8.8% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*
Current ratio	x	0.6	0.5
Debtors’ Days	Days	376	443
Interest coverage	x	-2.7	-0.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	-8.8	-2.2
Return on equity	%	-24.5	-8.9
Return on capital employed	%	-14.2	-1.9

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 123.4 to Rs 135.8, registering a gain of Rs 12.4 or around 10.0%.

Overall, the S&P BSE SENSEX is up 16.3% 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