FORTIS HEALTHCARE 2022-23 Annual Report Analysis

Wed, 12 Jul

FORTIS HEALTHCARE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

FORTIS HEALTHCARE Income Statement Analysis

• Operating income during the year rose 10.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.0% in FY23 as against 24.6% in FY22.
• Depreciation charges increased by 5.0% and finance costs decreased by 12.1% YoY, respectively.
• Other income grew by 125.8% YoY.
• Net profit for the year declined by 19.9% YoY.
• Net profit margins during the year declined from 13.8% in FY22 to 10.1% in FY23.

FORTIS HEALTHCARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	57,176	62,976	10.1%
Other income	Rs m	273	617	125.8%
Total Revenues	Rs m	57,449	63,593	10.7%
Gross profit	Rs m	14,081	11,968	-15.0%
Depreciation	Rs m	3,008	3,157	5.0%
Interest	Rs m	1,468	1,291	-12.1%
Profit before tax	Rs m	9,878	8,137	-17.6%
Tax	Rs m	1,978	1,807	-8.7%
Profit after tax	Rs m	7,899	6,330	-19.9%
Gross profit margin	%	24.6	19.0
Effective tax rate	%	20.0	22.2
Net profit margin	%	13.8	10.1

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FORTIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 13 billion as compared to Rs 13 billion in FY22, thereby witnessing an increase of 3.6%.
• Long-term debt down at Rs 6 billion as compared to Rs 8 billion during FY22, a fall of 26.6%.
• Current assets rose 2% and stood at Rs 12 billion, while fixed assets rose 3% and stood at Rs 107 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 121 billion as against Rs 115 billion during FY22, thereby witnessing a growth of 5%.

FORTIS HEALTHCARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	61,765	72,405	17.2
Current Liabilities	Rs m	12,682	13,136	3.6
Long-term Debt	Rs m	7,791	5,722	-26.6
Total Liabilities	Rs m	115,156	120,893	5.0
Current assets	Rs m	11,304	11,503	1.8
Fixed Assets	Rs m	103,824	106,830	2.9
Total Assets	Rs m	115,156	120,893	5.0

FORTIS HEALTHCARE Cash Flow Statement Analysis

• FORTIS HEALTHCARE's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -5 billion, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -215 million from the Rs -2 billion net cash flows seen during FY22.

FORTIS HEALTHCARE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	8,654	8,222	-5.0%
Cash Flow from Investing Activities	Rs m	-5,144	-3,737	-
Cash Flow from Financing Activities	Rs m	-5,173	-4,712	-
Net Cash Flow	Rs m	-1,525	-215	-

Current Valuations for FORTIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an decline from the EPS of Rs 10.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 330.3, stands at 40.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	75.7	83.4
TTM Earnings per share	Rs	10.5	8.4
Diluted earnings per share	Rs	10.5	8.4
Price to Cash Flow	x	20.1	21.7
TTM P/E ratio	x	28.6	40.8
Price / Book Value ratio	x	3.1	2.8
Market Cap	Rs m	193,213	205,575
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for FORTIS HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 0.9x during FY22. 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 7.3x during FY23, from 7.7x during FY22. 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 8.7% during FY23, from 12.8% during FY23. 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 12.1% during FY23, from 16.3% during FY22. 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 6.3% during FY23, from 8.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.9	0.9
Debtors’ Days	Days	327	337
Interest coverage	x	7.7	7.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.1	6.3
Return on equity	%	12.8	8.7
Return on capital employed	%	16.3	12.1

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 253.5 to Rs 330.3, registering a gain of Rs 76.9 or around 30.3%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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