TTK HEALTHCARE 2022-23 Annual Report Analysis

Sat, 1 Jul

TTK HEALTHCARE 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.

TTK HEALTHCARE Income Statement Analysis

• Operating income during the year rose 21.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.3% in FY23 as against 4.1% in FY22.
• Depreciation charges increased by 1.8% and finance costs increased by 61.8% YoY, respectively.
• Other income grew by 196.0% YoY.
• Net profit for the year grew by 141.3% YoY.
• Net profit margins during the year grew from 3.1% in FY22 to 6.2% in FY23.

TTK HEALTHCARE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,992	7,251	21.0%
Other income	Rs m	163	483	196.0%
Total Revenues	Rs m	6,156	7,734	25.6%
Gross profit	Rs m	243	313	28.9%
Depreciation	Rs m	126	128	1.8%
Interest	Rs m	32	52	61.8%
Profit before tax	Rs m	248	616	148.2%
Tax	Rs m	63	170	168.2%
Profit after tax	Rs m	185	447	141.3%
Gross profit margin	%	4.1	4.3
Effective tax rate	%	25.5	27.5
Net profit margin	%	3.1	6.2

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TTK HEALTHCARE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 5.9%.
• Current assets rose 151% and stood at Rs 11 billion, while fixed assets fell 3% and stood at Rs 994 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 6 billion during FY22, thereby witnessing a growth of 111%.

TTK HEALTHCARE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,296	9,534	189.2
Current Liabilities	Rs m	1,990	2,108	5.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,512	11,658	111.5
Current assets	Rs m	4,246	10,664	151.2
Fixed Assets	Rs m	1,024	994	-3.0
Total Assets	Rs m	5,512	11,658	111.5

TTK HEALTHCARE Cash Flow Statement Analysis

• TTK HEALTHCARE's cash flow from operating activities (CFO) during FY23 stood at Rs -261 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 330 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -124 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -55 million from the Rs 53 million net cash flows seen during FY22.

TTK HEALTHCARE 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	450	-261	-
Cash Flow from Investing Activities	Rs m	-296	330	-
Cash Flow from Financing Activities	Rs m	-101	-124	-
Net Cash Flow	Rs m	53	-55	-

Current Valuations for TTK HEALTHCARE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.6, an improvement from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,246.7, stands at 39.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 21.8 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	424.1	513.2
TTM Earnings per share	Rs	13.1	31.6
Diluted earnings per share	Rs	13.1	31.6
Price to Cash Flow	x	37.7	21.8
TTM P/E ratio	x	63.3	39.4
Price / Book Value ratio	x	3.1	1.3
Market Cap	Rs m	10,192	12,529
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for TTK HEALTHCARE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.1x during FY23, from 2.1x 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 12.8x during FY23, from 8.7x 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 4.7% during FY23, from 5.6% 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 7.0% during FY23, from 8.5% 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 4.3% during FY23, from 3.9% 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	2.1	5.1
Debtors’ Days	Days	326	464
Interest coverage	x	8.7	12.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	4.3
Return on equity	%	5.6	4.7
Return on capital employed	%	8.5	7.0

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 785.2 to Rs 1,246.7, registering a gain of Rs 461.5 or around 58.8%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 25,814.5 (up 0.7%). Over the last one year it has moved up from 21,739.5 to 25,814.5, a gain of 4,075 points (up 18.7%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

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