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KMC SPECIALITY HOSPITALS 2022-23 Annual Report Analysis

Fri, 31 Mar

KMC SPECIALITY HOSPITALS 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.

KMC SPECIALITY HOSPITALS Income Statement Analysis

• Operating income during the year rose 14.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.5% in FY23 as against 27.4% in FY22.
• Depreciation charges increased by 17.1% and finance costs increased by 14.9% YoY, respectively.
• Other income grew by 48.0% YoY.
• Net profit for the year grew by 12.5% YoY.
• Net profit margins during the year declined from 17.4% in FY22 to 17.1% in FY23.

KMC SPECIALITY HOSPITALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,361	1,558	14.5%
Other income	Rs m	23	35	48.0%
Total Revenues	Rs m	1,384	1,592	15.0%
Gross profit	Rs m	373	413	10.8%
Depreciation	Rs m	65	76	17.1%
Interest	Rs m	10	11	14.9%
Profit before tax	Rs m	321	360	12.1%
Tax	Rs m	84	93	11.1%
Profit after tax	Rs m	237	267	12.5%
Gross profit margin	%	27.4	26.5
Effective tax rate	%	26.1	25.8
Net profit margin	%	17.4	17.1

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KMC SPECIALITY HOSPITALS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 225 million as compared to Rs 195 million in FY22, thereby witnessing an increase of 15.6%.
• Long-term debt stood at Rs 399 million as compared to Rs 196 million during FY22, a growth of 103.4%.
• Current assets rose 22% and stood at Rs 519 million, while fixed assets rose 48% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 41%.

KMC SPECIALITY HOSPITALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	868	1,135	30.8
Current Liabilities	Rs m	195	225	15.6
Long-term Debt	Rs m	196	399	103.4
Total Liabilities	Rs m	1,519	2,140	40.9
Current assets	Rs m	425	519	22.1
Fixed Assets	Rs m	1,094	1,621	48.2
Total Assets	Rs m	1,519	2,140	40.9

KMC SPECIALITY HOSPITALS Cash Flow Statement Analysis

• KMC SPECIALITY HOSPITALS's cash flow from operating activities (CFO) during FY23 stood at Rs 323 million, an improvement of 11.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -480 million, an improvement of 68.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 158 million, an improvement of 1,583% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs -5 million net cash flows seen during FY22.

KMC SPECIALITY HOSPITALS 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	291	323	11.0%
Cash Flow from Investing Activities	Rs m	-285	-480	-
Cash Flow from Financing Activities	Rs m	-11	158	-
Net Cash Flow	Rs m	-5	2	-

Current Valuations for KMC SPECIALITY HOSPITALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an improvement from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 57.5, stands at 35.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.3 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 29.2 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	8.3	9.6
TTM Earnings per share	Rs	1.5	1.6
Diluted earnings per share	Rs	1.5	1.6
Price to Cash Flow	x	30.0	29.2
TTM P/E ratio	x	38.3	35.2
Price / Book Value ratio	x	10.6	8.8
Market Cap	Rs m	9,190	10,030
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for KMC SPECIALITY HOSPITALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 2.2x 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 deteriorated and stood at 32.9x during FY23, from 33.7x 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 23.5% during FY23, from 27.3% 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 24.2% during FY23, from 31.1% 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 13.0% during FY23, from 16.3% 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	2.2	2.3
Debtors’ Days	Days	95	102
Interest coverage	x	33.7	32.9
Debt to equity ratio	x	0.2	0.4
Return on assets	%	16.3	13.0
Return on equity	%	27.3	23.5
Return on capital employed	%	31.1	24.2

To see how KMC SPECIALITY HOSPITALS has performed over the last 5 years, please visit here.

KMC SPECIALITY HOSPITALS Share Price Performance

Over the last one year, KMC SPECIALITY HOSPITALS share price has moved up from Rs 55.7 to Rs 57.5, registering a gain of Rs 1.9 or around 3.4%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for KMC SPECIALITY HOSPITALS and quarterly results for KMC SPECIALITY HOSPITALS)