NARAYANA HRUDAYALAYA 2020-21 Annual Report Analysis

Wed, 31 Mar

NARAYANA HRUDAYALAYA 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.

NARAYANA HRUDAYALAYA Income Statement Analysis

• Operating income during the year fell 17.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 54.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.3% in FY21 as against 13.3% in FY20.
• Depreciation charges decreased by 1.2% and finance costs decreased by 12.2% YoY, respectively.
• Other income declined by 0.6% YoY.
• Net profit for the year declined by 106.1% YoY.
• Net profit margins during the year declined from 3.9% in FY20 to 0.3% in FY21.

NARAYANA HRUDAYALAYA Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	31,278	25,823	-17.4%
Other income	Rs m	283	282	-0.6%
Total Revenues	Rs m	31,562	26,105	-17.3%
Gross profit	Rs m	4,160	1,885	-54.7%
Depreciation	Rs m	1,858	1,835	-1.2%
Interest	Rs m	938	823	-12.2%
Profit before tax	Rs m	1,647	-492	-129.9%
Tax	Rs m	423	-418	-198.9%
Profit after tax	Rs m	1,225	-75	-106.1%
Gross profit margin	%	13.3	7.3
Effective tax rate	%	25.6	84.9
Net profit margin	%	3.9	-0.3

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

NARAYANA HRUDAYALAYA Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 7 billion as compared to Rs 6 billion in FY20, thereby witnessing an increase of 16.8%.
• Long-term debt down at Rs 5 billion as compared to Rs 6 billion during FY20, a fall of 18.5%.
• Current assets rose 13% and stood at Rs 7 billion, while fixed assets fell 9% and stood at Rs 21 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 28 billion as against Rs 29 billion during FY20, thereby witnessing a fall of 4%.

NARAYANA HRUDAYALAYA Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	11,326	11,165	-1.4
Current Liabilities	Rs m	6,019	7,032	16.8
Long-term Debt	Rs m	6,185	5,041	-18.5
Total Liabilities	Rs m	28,891	27,682	-4.2
Current assets	Rs m	5,864	6,651	13.4
Fixed Assets	Rs m	23,026	21,031	-8.7
Total Assets	Rs m	28,891	27,682	-4.2

NARAYANA HRUDAYALAYA Cash Flow Statement Analysis

• NARAYANA HRUDAYALAYA's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion, an improvement of 20% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -23 million from the Rs 75 million net cash flows seen during FY20.

NARAYANA HRUDAYALAYA 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	4,433	3,091	-30.3%
Cash Flow from Investing Activities	Rs m	-1,885	-1,130	-
Cash Flow from Financing Activities	Rs m	-2,469	-1,984	-
Net Cash Flow	Rs m	75	-23	-

Current Valuations for NARAYANA HRUDAYALAYA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.4, an decline from the EPS of Rs 6.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 406.1, stands at -1,112.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.4 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 44.3 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	153.1	126.4
TTM Earnings per share	Rs	6.0	-0.4
Diluted earnings per share	Rs	6.0	-0.4
Price to Cash Flow	x	16.4	44.3
TTM P/E ratio	x	40.9	-1,112.9
Price / Book Value ratio	x	5.1	7.0
Market Cap	Rs m	58,279	77,948
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for NARAYANA HRUDAYALAYA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY21, from 1.0x 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 deteriorated and stood at 0.4x during FY21, from 2.8x 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 declined and down at -0.7% during FY21, from 10.8% 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 declined and down at 2.0% during FY21, from 14.8% 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 declined and down at 2.7% during FY21, from 7.5% 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	1.0	0.9
Debtors’ Days	Days	31	39
Interest coverage	x	2.8	0.4
Debt to equity ratio	x	0.5	0.5
Return on assets	%	7.5	2.7
Return on equity	%	10.8	-0.7
Return on capital employed	%	14.8	2.0

To see how NARAYANA HRUDAYALAYA has performed over the last 5 years, please visit here.

NARAYANA HRUDAYALAYA Share Price Performance

Over the last one year, NARAYANA HRUDAYALAYA share price has moved up from Rs 247.5 to Rs 406.1, registering a gain of Rs 158.7 or around 64.1%.

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 NARAYANA HRUDAYALAYA and quarterly results for NARAYANA HRUDAYALAYA)

Read: Latest Annual Report Analysis of NARAYANA HRUDAYALAYA