NARAYANA HRUDAYALAYA 2022-23 Annual Report Analysis

Mon, 17 Jul

NARAYANA HRUDAYALAYA 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.

NARAYANA HRUDAYALAYA Income Statement Analysis

• Operating income during the year rose 22.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.7% in FY23 as against 17.7% in FY22.
• Depreciation charges increased by 14.5% and finance costs increased by 10.5% YoY, respectively.
• Other income grew by 89.4% YoY.
• Net profit for the year grew by 77.3% YoY.
• Net profit margins during the year grew from 9.2% in FY22 to 13.4% in FY23.

NARAYANA HRUDAYALAYA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	37,013	45,248	22.2%
Other income	Rs m	346	654	89.4%
Total Revenues	Rs m	37,359	45,902	22.9%
Gross profit	Rs m	6,548	9,803	49.7%
Depreciation	Rs m	1,835	2,100	14.5%
Interest	Rs m	761	841	10.5%
Profit before tax	Rs m	4,298	7,516	74.9%
Tax	Rs m	877	1,450	65.4%
Profit after tax	Rs m	3,421	6,066	77.3%
Gross profit margin	%	17.7	21.7
Effective tax rate	%	20.4	19.3
Net profit margin	%	9.2	13.4

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NARAYANA HRUDAYALAYA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 26.0%.
• Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY22, a growth of 45.0%.
• Current assets rose 42% and stood at Rs 13 billion, while fixed assets rose 29% and stood at Rs 29 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 42 billion as against Rs 31 billion during FY22, thereby witnessing a growth of 33%.

NARAYANA HRUDAYALAYA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,855	21,306	43.4
Current Liabilities	Rs m	7,841	9,880	26.0
Long-term Debt	Rs m	4,321	6,264	45.0
Total Liabilities	Rs m	31,331	41,573	32.7
Current assets	Rs m	9,129	12,947	41.8
Fixed Assets	Rs m	22,202	28,626	28.9
Total Assets	Rs m	31,331	41,573	32.7

NARAYANA HRUDAYALAYA Cash Flow Statement Analysis

• NARAYANA HRUDAYALAYA's cash flow from operating activities (CFO) during FY23 stood at Rs 11 billion, an improvement of 123.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -12 billion, an improvement of 339.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 877 million, an improvement of 155% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -39 million from the Rs 590 million net cash flows seen during FY22.

NARAYANA HRUDAYALAYA 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	4,850	10,846	123.6%
Cash Flow from Investing Activities	Rs m	-2,669	-11,741	-
Cash Flow from Financing Activities	Rs m	-1,589	877	-
Net Cash Flow	Rs m	590	-39	-

Current Valuations for NARAYANA HRUDAYALAYA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.7, an improvement from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,036.0, stands at 34.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.9 times, while the price to sales ratio stands at 4.7 times.
• The company's price to cash flow (P/CF) ratio stood at 17.6 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	181.1	221.4
TTM Earnings per share	Rs	16.7	29.7
Diluted earnings per share	Rs	16.7	29.7
Price to Cash Flow	x	29.0	17.6
TTM P/E ratio	x	43.5	34.9
Price / Book Value ratio	x	8.0	6.7
Market Cap	Rs m	118,519	143,676
Dividends per share (Unadj.)	Rs	1.0	2.5

Ratio Analysis for NARAYANA HRUDAYALAYA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.2x 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 improved and stood at 9.9x during FY23, from 6.6x 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 improved and stood at 28.5% during FY23, from 23.0% 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 improved and stood at 30.3% during FY23, from 26.4% 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 improved and stood at 16.6% during FY23, from 13.3% 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	1.2	1.3
Debtors’ Days	Days	43	35
Interest coverage	x	6.6	9.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	13.3	16.6
Return on equity	%	23.0	28.5
Return on capital employed	%	26.4	30.3

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 666.7 to Rs 1,036.0, registering a gain of Rs 369.3 or around 55.4%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 26,443.1 (up 0.8%). Over the last one year it has moved up from 22,591.9 to 26,443.1, a gain of 3,851 points (up 17.0%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for NARAYANA HRUDAYALAYA and quarterly results for NARAYANA HRUDAYALAYA)