FORTIS HEALTHCARE 2020-21 Annual Report Analysis

Wed, 31 Mar

FORTIS HEALTHCARE has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

FORTIS HEALTHCARE Income Statement Analysis

• Operating income during the year fell 13.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY21 as against 14.5% in FY20.
• Depreciation charges decreased by 0.4% and finance costs decreased by 19.1% YoY, respectively.
• Other income declined by 11.6% YoY.
• Net profit for the year declined by 230.8% YoY.
• Net profit margins during the year declined from 1.7% in FY20 to 2.6% in FY21.

FORTIS HEALTHCARE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	46,323	40,301	-13.0%
Other income	Rs m	526	466	-11.6%
Total Revenues	Rs m	46,850	40,767	-13.0%
Gross profit	Rs m	6,713	4,057	-39.6%
Depreciation	Rs m	2,917	2,906	-0.4%
Interest	Rs m	2,051	1,659	-19.1%
Profit before tax	Rs m	2,272	-43	-101.9%
Tax	Rs m	1,479	995	-32.7%
Profit after tax	Rs m	793	-1,037	-230.8%
Gross profit margin	%	14.5	10.1
Effective tax rate	%	65.1	-2,333.2
Net profit margin	%	1.7	-2.6

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FORTIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 26 billion in FY20, thereby witnessing an decrease of -52.2%.
• Long-term debt stood at Rs 10 billion as compared to Rs 10 billion during FY20, a growth of 1.4%.
• Current assets rose 10% and stood at Rs 10 billion, while fixed assets fell 3% and stood at Rs 97 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 108 billion as against Rs 110 billion during FY20, thereby witnessing a fall of 2%.

FORTIS HEALTHCARE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	66,574	61,179	-8.1
Current Liabilities	Rs m	25,789	12,330	-52.2
Long-term Debt	Rs m	9,541	9,677	1.4
Total Liabilities	Rs m	109,549	107,845	-1.6
Current assets	Rs m	9,405	10,368	10.2
Fixed Assets	Rs m	100,145	97,477	-2.7
Total Assets	Rs m	109,549	107,845	-1.6

FORTIS HEALTHCARE Cash Flow Statement Analysis

• FORTIS HEALTHCARE's cash flow from operating activities (CFO) during FY21 stood at Rs 5 billion, an improvement of 183.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -1 billion, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 2 billion from the Rs -6 billion net cash flows seen during FY20.

FORTIS HEALTHCARE Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	1,715	4,855	183.0%
Cash Flow from Investing Activities	Rs m	604	-1,351	-
Cash Flow from Financing Activities	Rs m	-8,616	-1,429	-
Net Cash Flow	Rs m	-6,266	2,120	-

Current Valuations for FORTIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.4, an decline from the EPS of Rs 1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 199.0, stands at -144.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 66.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	61.4	53.4
TTM Earnings per share	Rs	1.1	-1.4
Diluted earnings per share	Rs	1.1	-1.4
Price to Cash Flow	x	25.6	66.6
TTM P/E ratio	x	120.0	-144.8
Price / Book Value ratio	x	1.6	2.0
Market Cap	Rs m	105,921	124,493
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FORTIS HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY21, from 0.4x during FY20. 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 1.0x during FY21, from 2.1x during FY20. 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 -1.7% during FY21, from 1.2% during FY21. 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 2.3% during FY21, from 5.7% during FY20. 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 0.6% during FY21, from 2.6% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.4	0.8
Debtors’ Days	Days	361	353
Interest coverage	x	2.1	1.0
Debt to equity ratio	x	0.1	0.2
Return on assets	%	2.6	0.6
Return on equity	%	1.2	-1.7
Return on capital employed	%	5.7	2.3

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 126.1 to Rs 199.0, registering a gain of Rs 73.0 or around 57.9%.

Overall, the S&P BSE SENSEX is up 74.1% 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