METROPOLIS HEALTHCARE 2020-21 Annual Report Analysis

Wed, 31 Mar

METROPOLIS HEALTHCARE 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.

METROPOLIS HEALTHCARE Income Statement Analysis

• Operating income during the year rose 16.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.0% in FY21 as against 24.8% in FY20.
• Depreciation charges increased by 17.0% and finance costs decreased by 8.6% YoY, respectively.
• Other income grew by 40.6% YoY.
• Net profit for the year grew by 43.2% YoY.
• Net profit margins during the year grew from 15.0% in FY20 to 18.4% in FY21.

METROPOLIS HEALTHCARE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,564	9,980	16.5%
Other income	Rs m	86	120	40.6%
Total Revenues	Rs m	8,650	10,100	16.8%
Gross profit	Rs m	2,126	2,898	36.3%
Depreciation	Rs m	393	459	17.0%
Interest	Rs m	127	116	-8.6%
Profit before tax	Rs m	1,693	2,443	44.4%
Tax	Rs m	412	610	48.1%
Profit after tax	Rs m	1,281	1,833	43.2%
Gross profit margin	%	24.8	29.0
Effective tax rate	%	24.3	25.0
Net profit margin	%	15.0	18.4

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METROPOLIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 14.3%.
• Current assets rose 47% and stood at Rs 6 billion, while fixed assets fell 16% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 11 billion as against Rs 9 billion during FY20, thereby witnessing a growth of 14%.

METROPOLIS HEALTHCARE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	5,214	6,981	33.9
Current Liabilities	Rs m	2,102	2,402	14.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	9,300	10,592	13.9
Current assets	Rs m	4,378	6,447	47.3
Fixed Assets	Rs m	4,922	4,145	-15.8
Total Assets	Rs m	9,300	10,592	13.9

METROPOLIS HEALTHCARE Cash Flow Statement Analysis

• METROPOLIS HEALTHCARE's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 15.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs 617 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -327 million, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 3 billion from the Rs 558 million net cash flows seen during FY20.

METROPOLIS HEALTHCARE 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	2,150	2,490	15.8%
Cash Flow from Investing Activities	Rs m	-1,048	617	-
Cash Flow from Financing Activities	Rs m	-553	-327	-
Net Cash Flow	Rs m	558	2,794	400.7%

Current Valuations for METROPOLIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.9, an improvement from the EPS of Rs 25.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,241.1, stands at 62.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.4 times, while the price to sales ratio stands at 11.5 times.
• The company's price to cash flow (P/CF) ratio stood at 38.9 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	169.1	195.3
TTM Earnings per share	Rs	25.3	35.9
Diluted earnings per share	Rs	25.0	35.8
Price to Cash Flow	x	39.3	38.9
TTM P/E ratio	x	51.4	62.6
Price / Book Value ratio	x	14.6	12.8
Market Cap	Rs m	76,322	89,308
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for METROPOLIS HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY21, from 2.1x 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 improved and stood at 22.1x during FY21, from 14.4x 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 improved and stood at 26.3% during FY21, from 24.6% 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 improved and stood at 36.7% during FY21, from 34.9% 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 improved and stood at 18.4% during FY21, from 15.1% 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	2.1	2.7
Debtors’ Days	Days	547	450
Interest coverage	x	14.4	22.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.1	18.4
Return on equity	%	24.6	26.3
Return on capital employed	%	34.9	36.7

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

METROPOLIS HEALTHCARE Share Price Performance

Over the last one year, METROPOLIS HEALTHCARE share price has moved up from Rs 1,286.3 to Rs 2,241.1, registering a gain of Rs 954.8 or around 74.2%.

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 METROPOLIS HEALTHCARE and quarterly results for METROPOLIS HEALTHCARE)

Read: Latest Annual Report Analysis of METROPOLIS HEALTHCARE