TTK HEALTHCARE 2017-18 Annual Report Analysis

Sat, 31 Mar

TTK HEALTHCARE has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

TTK HEALTHCARE Income Statement Analysis

• Operating income during the year rose 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.4% in FY18 as against 7.3% in FY17.
• Depreciation charges increased by 27.9% and finance costs increased by 51.8% YoY, respectively.
• Other income grew by 32.2% YoY.
• Net profit for the year declined by 3.1% YoY.
• Net profit margins during the year declined from 3.6% in FY17 to 3.1% in FY18.

TTK HEALTHCARE Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	5,278	5,775	9.4%
Other income	Rs m	57	76	32.2%
Total Revenues	Rs m	5,335	5,851	9.7%
Gross profit	Rs m	385	425	10.6%
Depreciation	Rs m	119	152	27.9%
Interest	Rs m	31	47	51.8%
Profit before tax	Rs m	292	301	3.3%
Tax	Rs m	104	120	14.8%
Profit after tax	Rs m	187	182	-3.1%
Gross profit margin	%	7.3	7.4
Effective tax rate	%	35.8	39.7
Net profit margin	%	3.6	3.1

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TTK HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 2 billion as compared to Rs 1 billion in FY17, thereby witnessing an increase of 39.9%.
• Long-term debt down at Rs 7 million as compared to Rs 9 million during FY17, a fall of 24.2%.
• Current assets rose 53% and stood at Rs 3 billion, while fixed assets rose 24% and stood at Rs 1 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 4 billion as against Rs 3 billion during FY17, thereby witnessing a growth of 41%.

TTK HEALTHCARE Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	1,575	2,330	47.9
Current Liabilities	Rs m	1,197	1,675	39.9
Long-term Debt	Rs m	9	7	-24.2
Total Liabilities	Rs m	2,849	4,027	41.4
Current assets	Rs m	1,666	2,556	53.5
Fixed Assets	Rs m	1,183	1,471	24.3
Total Assets	Rs m	2,849	4,027	41.4

TTK HEALTHCARE Cash Flow Statement Analysis

• TTK HEALTHCARE's cash flow from operating activities (CFO) during FY18 stood at Rs 253 million, an improvement of 42.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -226 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -72 million, an improvement of 69% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -41 million from the Rs 1 million net cash flows seen during FY17.

TTK HEALTHCARE Cash Flow Statement 2017-18

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-17	Mar-18
Cash Flow from Operating Activities	Rs m	178	253	42.0%
Cash Flow from Investing Activities	Rs m	53	-226	-
Cash Flow from Financing Activities	Rs m	-229	-72	-
Net Cash Flow	Rs m	1	-41	-

Current Valuations for TTK HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.9, an decline from the EPS of Rs 24.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,052.3, stands at 62.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 45.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Sales per share (Unadj.)	Rs	679.3	408.7
TTM Earnings per share	Rs	24.1	12.9
Diluted earnings per share	Rs	13.3	12.9
Price to Cash Flow	x	36.5	45.3
TTM P/E ratio	x	57.9	62.9
Price / Book Value ratio	x	4.6	6.5
Market Cap	Rs m	7,300	15,138
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for TTK HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.4x during FY17. 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 7.4x during FY18, from 10.4x during FY17. 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 7.8% during FY18, from 11.9% during FY18. 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 14.9% during FY18, from 20.4% during FY17. 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 5.7% during FY18, from 7.7% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*
Current ratio	x	1.4	1.5
Debtors’ Days	Days	237	350
Interest coverage	x	10.4	7.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	5.7
Return on equity	%	11.9	7.8
Return on capital employed	%	20.4	14.9

To see how TTK HEALTHCARE has performed over the last 5 years, please visit here.

TTK HEALTHCARE Share Price Performance

Over the last one year, TTK HEALTHCARE share price has moved up from Rs 792.8 to Rs 1,052.3, registering a gain of Rs 259.6 or around 32.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 13,157.6 (down 1.1%). Over the last one year it has moved down from 15,312.4 to 13,157.6, a loss of 2,155 points (down 14.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Read: Latest Annual Report Analysis of TTK HEALTHCARE