TTK HEALTHCARE 2020-21 Annual Report Analysis

Wed, 31 Mar

TTK HEALTHCARE 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.

TTK HEALTHCARE Income Statement Analysis

• Operating income during the year fell 1.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.8% in FY21 as against 4.4% in FY20.
• Depreciation charges decreased by 4.6% and finance costs decreased by 32.0% YoY, respectively.
• Other income grew by 14.0% YoY.
• Net profit for the year grew by 277.0% YoY.
• Net profit margins during the year grew from 1.9% in FY20 to 7.3% in FY21.

TTK HEALTHCARE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,458	6,365	-1.4%
Other income	Rs m	88	100	14.0%
Total Revenues	Rs m	6,545	6,465	-1.2%
Gross profit	Rs m	283	430	51.9%
Depreciation	Rs m	144	137	-4.6%
Interest	Rs m	33	22	-32.0%
Profit before tax	Rs m	194	371	90.7%
Tax	Rs m	71	-94	-232.1%
Profit after tax	Rs m	123	464	277.0%
Gross profit margin	%	4.4	6.8
Effective tax rate	%	36.6	-25.3
Net profit margin	%	1.9	7.3

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TTK HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an increase of 10.1%.
• Current assets rose 26% and stood at Rs 4 billion, while fixed assets fell 13% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 14%.

TTK HEALTHCARE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	2,490	2,946	18.3
Current Liabilities	Rs m	1,715	1,888	10.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,270	4,878	14.2
Current assets	Rs m	2,980	3,752	25.9
Fixed Assets	Rs m	1,290	1,126	-12.7
Total Assets	Rs m	4,270	4,878	14.2

TTK HEALTHCARE Cash Flow Statement Analysis

• TTK HEALTHCARE's cash flow from operating activities (CFO) during FY21 stood at Rs 964 million, an improvement of 386.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -772 million, an improvement of 480.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -172 million on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 20 million from the Rs -36 million net cash flows seen during FY20.

TTK HEALTHCARE 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	198	964	386.0%
Cash Flow from Investing Activities	Rs m	-133	-772	-
Cash Flow from Financing Activities	Rs m	-102	-172	-
Net Cash Flow	Rs m	-36	20	-

Current Valuations for TTK HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.9, an improvement from the EPS of Rs 8.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 494.6, stands at 15.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	457.0	450.5
TTM Earnings per share	Rs	8.7	32.9
Diluted earnings per share	Rs	8.7	32.9
Price to Cash Flow	x	17.3	11.5
TTM P/E ratio	x	37.5	15.0
Price / Book Value ratio	x	2.8	2.4
Market Cap	Rs m	6,992	6,945
Dividends per share (Unadj.)	Rs	3.0	6.0

Ratio Analysis for TTK HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY21, from 1.7x 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 improved and stood at 17.7x during FY21, from 6.9x 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 improved and stood at 15.8% during FY21, from 4.9% 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 improved and stood at 13.3% during FY21, from 9.1% 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 improved and stood at 10.0% during FY21, from 3.7% 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	1.7	2.0
Debtors’ Days	Days	434	343
Interest coverage	x	6.9	17.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	10.0
Return on equity	%	4.9	15.8
Return on capital employed	%	9.1	13.3

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 327.0 to Rs 494.6, registering a gain of Rs 167.7 or around 51.3%.

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 TTK HEALTHCARE and quarterly results for TTK HEALTHCARE)

Read: Latest Annual Report Analysis of TTK HEALTHCARE