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METROPOLIS HEALTHCARE 2022-23 Annual Report Analysis

Tue, 15 Aug

METROPOLIS HEALTHCARE 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.

METROPOLIS HEALTHCARE Income Statement Analysis

• Operating income during the year fell 6.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.4% in FY23 as against 29.4% in FY22.
• Depreciation charges increased by 41.1% and finance costs increased by 27.3% YoY, respectively.
• Other income declined by 12.8% YoY.
• Net profit for the year declined by 33.2% YoY.
• Net profit margins during the year declined from 17.5% in FY22 to 12.5% in FY23.

METROPOLIS HEALTHCARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,283	11,482	-6.5%
Other income	Rs m	200	175	-12.8%
Total Revenues	Rs m	12,484	11,657	-6.6%
Gross profit	Rs m	3,616	2,911	-19.5%
Depreciation	Rs m	632	892	41.1%
Interest	Rs m	250	319	27.3%
Profit before tax	Rs m	2,934	1,875	-36.1%
Tax	Rs m	787	441	-43.9%
Profit after tax	Rs m	2,147	1,434	-33.2%
Gross profit margin	%	29.4	25.4
Effective tax rate	%	26.8	23.5
Net profit margin	%	17.5	12.5

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METROPOLIS HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -16.8%.
• Long-term debt down at Rs 286 million as compared to Rs 2 billion during FY22, a fall of 82.0%.
• Current assets fell 25% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 17 billion during FY22, thereby witnessing a fall of 2%.

METROPOLIS HEALTHCARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,744	9,809	12.2
Current Liabilities	Rs m	3,639	3,028	-16.8
Long-term Debt	Rs m	1,587	286	-82.0
Total Liabilities	Rs m	17,449	17,102	-2.0
Current assets	Rs m	4,554	3,406	-25.2
Fixed Assets	Rs m	12,895	13,696	6.2
Total Assets	Rs m	17,449	17,102	-2.0

METROPOLIS HEALTHCARE Cash Flow Statement Analysis

• METROPOLIS HEALTHCARE's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 468 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 29 million from the Rs -3 billion net cash flows seen during FY22.

METROPOLIS HEALTHCARE 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	2,533	2,471	-2.4%
Cash Flow from Investing Activities	Rs m	-7,376	468	-
Cash Flow from Financing Activities	Rs m	1,625	-2,923	-
Net Cash Flow	Rs m	-3,206	29	-

Current Valuations for METROPOLIS HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.0, an decline from the EPS of Rs 42.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,346.3, stands at 49.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 41.2 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	240.1	224.2
TTM Earnings per share	Rs	42.0	28.0
Diluted earnings per share	Rs	41.9	28.0
Price to Cash Flow	x	37.5	41.2
TTM P/E ratio	x	48.6	49.7
Price / Book Value ratio	x	15.8	9.8
Market Cap	Rs m	137,766	95,801
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 1.1x during FY23, from 1.3x 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 6.9x during FY23, from 12.7x 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 14.6% during FY23, from 24.6% 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 21.7% during FY23, from 30.8% 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 10.2% during FY23, from 13.7% 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	1.3	1.1
Debtors’ Days	Days	403	387
Interest coverage	x	12.7	6.9
Debt to equity ratio	x	0.2	0.0
Return on assets	%	13.7	10.2
Return on equity	%	24.6	14.6
Return on capital employed	%	30.8	21.7

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 down from Rs 1,488.7 to Rs 1,346.3, registering a loss of Rs 142.4 or around 9.6%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,819.2 (down 0.5%). Over the last one year it has moved up from 23,047.5 to 27,819.2, a gain of 4,772 points (up 20.7%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

(To know more, check out historical annual results for METROPOLIS HEALTHCARE and quarterly results for METROPOLIS HEALTHCARE)