HEALTHCARE GLOBAL ENTER. 2020-21 Annual Report Analysis

Wed, 31 Mar

HEALTHCARE GLOBAL ENTER. 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.

HEALTHCARE GLOBAL ENTER. Income Statement Analysis

• Operating income during the year fell 7.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 82.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.9% in FY21 as against 15.5% in FY20.
• Depreciation charges increased by 7.3% and finance costs decreased by 13.4% YoY, respectively.
• Other income grew by 106.5% YoY.
• Net profit for the year grew by 95.1% YoY.
• Net profit margins during the year declined from 10.4% in FY20 to 21.9% in FY21.

HEALTHCARE GLOBAL ENTER. Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	10,923	10,092	-7.6%
Other income	Rs m	103	212	106.5%
Total Revenues	Rs m	11,026	10,304	-6.5%
Gross profit	Rs m	1,689	289	-82.9%
Depreciation	Rs m	1,484	1,592	7.3%
Interest	Rs m	1,376	1,192	-13.4%
Profit before tax	Rs m	-1,069	-2,283	113.5%
Tax	Rs m	62	-76	-222.2%
Profit after tax	Rs m	-1,131	-2,207	95.1%
Gross profit margin	%	15.5	2.9
Effective tax rate	%	-5.8	3.3
Net profit margin	%	-10.4	-21.9

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HEALTHCARE GLOBAL ENTER. Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 5 billion as compared to Rs 6 billion in FY20, thereby witnessing an decrease of -19.2%.
• Long-term debt down at Rs 3 billion as compared to Rs 5 billion during FY20, a fall of 34.6%.
• Current assets rose 43% and stood at Rs 4 billion, while fixed assets fell 19% and stood at Rs 16 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 22 billion during FY20, thereby witnessing a fall of 10%.

HEALTHCARE GLOBAL ENTER. Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,742	6,465	72.8
Current Liabilities	Rs m	5,757	4,652	-19.2
Long-term Debt	Rs m	5,296	3,462	-34.6
Total Liabilities	Rs m	22,270	20,013	-10.1
Current assets	Rs m	3,038	4,350	43.2
Fixed Assets	Rs m	19,232	15,663	-18.6
Total Assets	Rs m	22,270	20,013	-10.1

HEALTHCARE GLOBAL ENTER. Cash Flow Statement Analysis

• HEALTHCARE GLOBAL ENTER.'s cash flow from operating activities (CFO) during FY21 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -2 billion, an improvement of 68.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 292% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 617 million from the Rs -297 million net cash flows seen during FY20.

HEALTHCARE GLOBAL ENTER. 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	1,301	1,205	-7.4%
Cash Flow from Investing Activities	Rs m	-1,014	-1,711	-
Cash Flow from Financing Activities	Rs m	-584	1,122	-
Net Cash Flow	Rs m	-297	617	-

Current Valuations for HEALTHCARE GLOBAL ENTER.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -17.6, an decline from the EPS of Rs -12.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 191.1, stands at -12.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at -26.1 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	123.2	80.5
TTM Earnings per share	Rs	-12.8	-17.6
Diluted earnings per share	Rs	-8.1	-15.9
Price to Cash Flow	x	29.5	-26.1
TTM P/E ratio	x	-9.2	-12.0
Price / Book Value ratio	x	3.7	2.5
Market Cap	Rs m	13,982	16,055
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HEALTHCARE GLOBAL ENTER.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.5x 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 -0.9x during FY21, from 0.2x 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 -34.1% during FY21, from -30.2% 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 -11.0% during FY21, from 3.4% 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 -5.1% during FY21, from 1.1% 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	0.5	0.9
Debtors’ Days	Days	62	67
Interest coverage	x	0.2	-0.9
Debt to equity ratio	x	1.4	0.5
Return on assets	%	1.1	-5.1
Return on equity	%	-30.2	-34.1
Return on capital employed	%	3.4	-11.0

To see how HEALTHCARE GLOBAL ENTER. has performed over the last 5 years, please visit here.

HEALTHCARE GLOBAL ENTER. Share Price Performance

Over the last one year, HEALTHCARE GLOBAL ENTER. share price has moved up from Rs 75.0 to Rs 191.1, registering a gain of Rs 116.1 or around 154.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,328.2 (up 0.4%). Over the last one year it has moved up from 12,148.6 to 21,328.2, a gain of 9,180 points (up 75.6%).

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

(To know more, check out historical annual results for HEALTHCARE GLOBAL ENTER. and quarterly results for HEALTHCARE GLOBAL ENTER.)

Read: Latest Annual Report Analysis of HEALTHCARE GLOBAL ENTER.