MEDPLUS HEALTH SERVICES 2022-23 Annual Report Analysis

Thu, 28 Dec

MEDPLUS HEALTH SERVICES 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.

MEDPLUS HEALTH SERVICES Income Statement Analysis

• Operating income during the year rose 20.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.2% in FY23 as against 7.6% in FY22.
• Depreciation charges increased by 52.1% and finance costs increased by 19.0% YoY, respectively.
• Other income grew by 46.9% YoY.
• Net profit for the year declined by 47.1% YoY.
• Net profit margins during the year declined from 2.5% in FY22 to 1.1% in FY23.

MEDPLUS HEALTH SERVICES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,793	45,576	20.6%
Other income	Rs m	314	461	46.9%
Total Revenues	Rs m	38,106	46,037	20.8%
Gross profit	Rs m	2,889	2,814	-2.6%
Depreciation	Rs m	1,194	1,816	52.1%
Interest	Rs m	829	987	19.0%
Profit before tax	Rs m	1,179	472	-60.0%
Tax	Rs m	232	-29	NA
Profit after tax	Rs m	947	501	-47.1%
Gross profit margin	%	7.6	6.2
Effective tax rate	%	19.7	-6.2
Net profit margin	%	2.5	1.1

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MEDPLUS HEALTH SERVICES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 5 billion as compared to Rs 6 billion in FY22, thereby witnessing an decrease of -14.7%.
• Current assets fell 9% and stood at Rs 15 billion, while fixed assets rose 29% and stood at Rs 13 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 28 billion as against Rs 26 billion during FY22, thereby witnessing a growth of 5%.

MEDPLUS HEALTH SERVICES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,064	14,607	3.9
Current Liabilities	Rs m	5,590	4,766	-14.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	26,237	27,645	5.4
Current assets	Rs m	16,317	14,807	-9.3
Fixed Assets	Rs m	9,920	12,838	29.4
Total Assets	Rs m	26,237	27,645	5.4

MEDPLUS HEALTH SERVICES Cash Flow Statement Analysis

• MEDPLUS HEALTH SERVICES's cash flow from operating activities (CFO) during FY23 stood at Rs 904 million 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 -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 billion from the Rs -928 million net cash flows seen during FY22.

MEDPLUS HEALTH SERVICES 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	1,699	904	-46.8%
Cash Flow from Investing Activities	Rs m	-7,031	4,294	-
Cash Flow from Financing Activities	Rs m	4,404	-1,702	-
Net Cash Flow	Rs m	-928	3,496	-

Current Valuations for MEDPLUS HEALTH SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an decline from the EPS of Rs 7.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 737.3, stands at 151.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 41.6 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	316.8	382.0
TTM Earnings per share	Rs	7.9	4.2
Diluted earnings per share	Rs	7.9	4.2
Price to Cash Flow	x	56.4	41.6
TTM P/E ratio	x	127.5	151.3
Price / Book Value ratio	x	9.6	6.6
Market Cap	Rs m	135,054	96,459
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for MEDPLUS HEALTH SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY23, from 2.9x 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 1.5x during FY23, from 2.4x 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 3.4% during FY23, from 6.7% 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 10.0% during FY23, from 14.3% 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 5.4% during FY23, from 6.8% 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	2.9	3.1
Debtors’ Days	Days	1	1
Interest coverage	x	2.4	1.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.8	5.4
Return on equity	%	6.7	3.4
Return on capital employed	%	14.3	10.0

To see how MEDPLUS HEALTH SERVICES has performed over the last 5 years, please visit here.

MEDPLUS HEALTH SERVICES Share Price Performance

Over the last one year, MEDPLUS HEALTH SERVICES share price has moved up from Rs 636.2 to Rs 737.3, registering a gain of Rs 101.1 or around 15.9%.

Overall, the S&P BSE SENSEX is up 19.5% over the year.

(To know more, check out historical annual results for MEDPLUS HEALTH SERVICES and quarterly results for MEDPLUS HEALTH SERVICES)