INDRAPRASTHA MEDICAL 2018-19 Annual Report Analysis

Sun, 31 Mar

INDRAPRASTHA MEDICAL 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.

INDRAPRASTHA MEDICAL Income Statement Analysis

• Operating income during the year rose 5.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY19 as against 9.6% in FY18.
• Depreciation charges decreased by 3.0% and finance costs decreased by 22.8% YoY, respectively.
• Other income declined by 70.8% YoY.
• Net profit for the year grew by 34.6% YoY.
• Net profit margins during the year grew from 2.8% in FY18 to 3.6% in FY19.

INDRAPRASTHA MEDICAL Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	7,484	7,882	5.3%
Other income	Rs m	16	5	-70.8%
Total Revenues	Rs m	7,500	7,886	5.2%
Gross profit	Rs m	720	808	12.2%
Depreciation	Rs m	307	298	-3.0%
Interest	Rs m	89	69	-22.8%
Profit before tax	Rs m	340	446	31.2%
Tax	Rs m	129	162	25.6%
Profit after tax	Rs m	211	284	34.6%
Gross profit margin	%	9.6	10.2
Effective tax rate	%	37.9	36.3
Net profit margin	%	2.8	3.6

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INDRAPRASTHA MEDICAL Balance Sheet Analysis

• The company's current liabilities during FY19 down at Rs 1 billion as compared to Rs 1 billion in FY18, thereby witnessing an decrease of -12.4%.
• Long-term debt down at Rs 150 million as compared to Rs 210 million during FY18, a fall of 28.6%.
• Current assets fell 0% and stood at Rs 1 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 4 billion as against Rs 4 billion during FY18, thereby witnessing a fall of 3%.

INDRAPRASTHA MEDICAL Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	2,323	2,440	5.0
Current Liabilities	Rs m	1,416	1,241	-12.4
Long-term Debt	Rs m	210	150	-28.6
Total Liabilities	Rs m	4,362	4,224	-3.2
Current assets	Rs m	1,361	1,356	-0.4
Fixed Assets	Rs m	3,001	2,868	-4.4
Total Assets	Rs m	4,362	4,224	-3.2

INDRAPRASTHA MEDICAL Cash Flow Statement Analysis

• INDRAPRASTHA MEDICAL's cash flow from operating activities (CFO) during FY19 stood at Rs 752 million, an improvement of 57.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -167 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -442 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 143 million from the Rs 6 million net cash flows seen during FY18.

INDRAPRASTHA MEDICAL 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	477	752	57.6%
Cash Flow from Investing Activities	Rs m	-299	-167	-
Cash Flow from Financing Activities	Rs m	-172	-442	-
Net Cash Flow	Rs m	6	143	2,374.4%

Current Valuations for INDRAPRASTHA MEDICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.4, stands at 12.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.9 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	81.6	86.0
TTM Earnings per share	Rs	2.3	3.1
Diluted earnings per share	Rs	2.3	3.1
Price to Cash Flow	x	8.6	6.9
TTM P/E ratio	x	21.0	12.4
Price / Book Value ratio	x	2.2	1.7
Market Cap	Rs m	5,212	4,040
Dividends per share (Unadj.)	Rs	1.5	1.6

Ratio Analysis for INDRAPRASTHA MEDICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY19, from 1.0x 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 7.5x during FY19, from 4.8x 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 11.6% during FY19, from 9.1% 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 19.9% during FY19, from 16.9% 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 8.4% during FY19, from 6.9% 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	1.0	1.1
Debtors’ Days	Days	427	35
Interest coverage	x	4.8	7.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.9	8.4
Return on equity	%	9.1	11.6
Return on capital employed	%	16.9	19.9

To see how INDRAPRASTHA MEDICAL has performed over the last 5 years, please visit here.

INDRAPRASTHA MEDICAL Share Price Performance

Over the last one year, INDRAPRASTHA MEDICAL share price has moved down from Rs 48.3 to Rs 38.4, registering a loss of Rs 10.0 or around 20.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 14,407.9 (up 1.4%). Over the last one year it has moved up from 13,157.6 to 14,407.9, a gain of 1,250 points (up 9.5%).

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

(To know more, check out historical annual results for INDRAPRASTHA MEDICAL and quarterly results for INDRAPRASTHA MEDICAL)

Read: Latest Annual Report Analysis of INDRAPRASTHA MEDICAL