HEALTHCARE GLOBAL ENTER. 2022-23 Annual Report Analysis

Mon, 19 Feb

HEALTHCARE GLOBAL ENTER. 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.

HEALTHCARE GLOBAL ENTER. Income Statement Analysis

• Operating income during the year rose 21.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 14.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.6% in FY23 as against 23.5% in FY22.
• Depreciation charges increased by 3.3% and finance costs increased by 5.9% YoY, respectively.
• Other income grew by 101.8% YoY.
• Net profit for the year declined by 54.7% YoY.
• Net profit margins during the year declined from 2.8% in FY22 to 1.0% in FY23.

HEALTHCARE GLOBAL ENTER. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	13,948	16,914	21.3%
Other income	Rs m	157	316	101.8%
Total Revenues	Rs m	14,105	17,230	22.2%
Gross profit	Rs m	3,281	2,802	-14.6%
Depreciation	Rs m	1,583	1,635	3.3%
Interest	Rs m	978	1,035	5.9%
Profit before tax	Rs m	878	449	-48.9%
Tax	Rs m	488	273	-44.2%
Profit after tax	Rs m	389	176	-54.7%
Gross profit margin	%	23.5	16.6
Effective tax rate	%	55.7	60.7
Net profit margin	%	2.8	1.0

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HEALTHCARE GLOBAL ENTER. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 21.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY22, a fall of 0.3%.
• Current assets rose 16% and stood at Rs 6 billion, while fixed assets rose 1% and stood at Rs 17 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 23 billion as against Rs 22 billion during FY22, thereby witnessing a growth of 4%.

HEALTHCARE GLOBAL ENTER. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,636	8,485	-1.7
Current Liabilities	Rs m	4,697	5,703	21.4
Long-term Debt	Rs m	3,629	3,617	-0.3
Total Liabilities	Rs m	22,136	23,107	4.4
Current assets	Rs m	5,023	5,803	15.5
Fixed Assets	Rs m	17,112	17,304	1.1
Total Assets	Rs m	22,136	23,107	4.4

HEALTHCARE GLOBAL ENTER. Cash Flow Statement Analysis

• HEALTHCARE GLOBAL ENTER.'s cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 14.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 10% 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.

HEALTHCARE GLOBAL ENTER. 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	2,201	2,516	14.3%
Cash Flow from Investing Activities	Rs m	1,246	-1,330	-
Cash Flow from Financing Activities	Rs m	-1,549	-1,401	-
Net Cash Flow	Rs m	1,898	-215	-

Current Valuations for HEALTHCARE GLOBAL ENTER.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 262.7, stands at 207.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 21.9 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	100.3	121.6
TTM Earnings per share	Rs	2.8	1.3
Diluted earnings per share	Rs	2.8	1.3
Price to Cash Flow	x	19.1	21.9
TTM P/E ratio	x	93.1	207.4
Price / Book Value ratio	x	3.6	4.7
Market Cap	Rs m	30,878	39,585
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HEALTHCARE GLOBAL ENTER.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.1x 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 1.4x during FY23, from 1.9x 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 2.1% during FY23, from 4.5% 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 12.3% during FY23, from 15.1% 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 5.2% during FY23, from 6.2% 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	1.1	1.0
Debtors’ Days	Days	57	65
Interest coverage	x	1.9	1.4
Debt to equity ratio	x	0.4	0.4
Return on assets	%	6.2	5.2
Return on equity	%	4.5	2.1
Return on capital employed	%	15.1	12.3

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 down from Rs 269.9 to Rs 262.7, registering a loss of Rs 7.2 or around 2.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 21,883.5 (up 0.4%). Over the last one year it has moved down from 24,303.8 to 21,883.5, a loss of 2,420 points (down 10.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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