METROPOLIS HEALTHCARE 2021-22 Annual Report Analysis

Wed, 3 Aug

METROPOLIS HEALTHCARE has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

METROPOLIS HEALTHCARE Income Statement Analysis

• Operating income during the year rose 23.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.6% in FY22 as against 29.0% in FY21.
• Depreciation charges increased by 37.6% and finance costs increased by 116.5% YoY, respectively.
• Other income grew by 46.3% YoY.
• Net profit for the year grew by 17.1% YoY.
• Net profit margins during the year declined from 18.4% in FY21 to 17.5% in FY22.

METROPOLIS HEALTHCARE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,980	12,283	23.1%
Other income	Rs m	120	176	46.3%
Total Revenues	Rs m	10,100	12,460	23.4%
Gross profit	Rs m	2,898	3,640	25.6%
Depreciation	Rs m	459	632	37.6%
Interest	Rs m	116	250	116.5%
Profit before tax	Rs m	2,443	2,934	20.1%
Tax	Rs m	610	787	29.0%
Profit after tax	Rs m	1,833	2,147	17.1%
Gross profit margin	%	29.0	29.6
Effective tax rate	%	25.0	26.8
Net profit margin	%	18.4	17.5

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METROPOLIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 42.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 0 million during FY21, a fall of 0.0%.
• Current assets fell 33% and stood at Rs 4 billion, while fixed assets rose 180% and stood at Rs 12 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 16 billion as against Rs 11 billion during FY21, thereby witnessing a growth of 50%.

METROPOLIS HEALTHCARE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,981	8,744	25.3
Current Liabilities	Rs m	2,402	3,424	42.6
Long-term Debt	Rs m	0	1,587	0.0
Total Liabilities	Rs m	10,592	15,927	50.4
Current assets	Rs m	6,447	4,340	-32.7
Fixed Assets	Rs m	4,145	11,587	179.6
Total Assets	Rs m	10,592	15,927	50.4

METROPOLIS HEALTHCARE Cash Flow Statement Analysis

• METROPOLIS HEALTHCARE's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion, an improvement of 1.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 597% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -3 billion from the Rs 3 billion net cash flows seen during FY21.

METROPOLIS HEALTHCARE Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,490	2,533	1.7%
Cash Flow from Investing Activities	Rs m	617	-7,376	-
Cash Flow from Financing Activities	Rs m	-327	1,625	-
Net Cash Flow	Rs m	2,794	-3,206	-

Current Valuations for METROPOLIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.0, an improvement from the EPS of Rs 35.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,552.5, stands at 37.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.1 times, while the price to sales ratio stands at 6.5 times.
• The company's price to cash flow (P/CF) ratio stood at 49.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	195.2	240.1
TTM Earnings per share	Rs	35.9	42.0
Diluted earnings per share	Rs	35.8	41.9
Price to Cash Flow	x	50.0	49.6
TTM P/E ratio	x	62.6	37.0
Price / Book Value ratio	x	12.8	15.8
Market Cap	Rs m	89,325	137,766
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for METROPOLIS HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY22, from 2.7x during FY21. 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 12.7x during FY22, from 22.1x during FY21. 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 24.6% during FY22, from 26.3% during FY22. 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 30.8% during FY22, from 36.7% during FY21. 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 15.1% during FY22, from 18.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.7	1.3
Debtors’ Days	Days	450	403
Interest coverage	x	22.1	12.7
Debt to equity ratio	x	0.0	0.2
Return on assets	%	18.4	15.1
Return on equity	%	26.3	24.6
Return on capital employed	%	36.7	30.8

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 down from Rs 2,950.6 to Rs 1,552.5, registering a loss of Rs 1,398.1 or around 47.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 22,818.4 (down 0.6%). Over the last one year it has moved down from 26,528.5 to 22,818.4, a loss of 3,710 points (down 14.0%).

Overall, the S&P BSE SENSEX is up 10.3% 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