Down Town Annual Reports, Balance Sheet and Financials

Down Town Hospital Limited Standalone Balance Sheet (in Rs)

Down Town Hospital Limited Standalone Profit & Loss Statement (in Rs)

Down Town Hospital Limited Standalone Cash Flow Statement (in Rs)

Summary of the Cash Flow Statement for the years 2025 and 2024:

Operating Cash Flow

During FY 2024–25, Down Town Hospital Limited generated net cash from operating activities of ₹7,71,05,900 compared to ₹14,69,60,100 in FY 2023–24, reflecting a significant decline despite profit before tax remaining relatively stable at ₹8,59,50,400 against ₹8,82,57,700 in the previous year. After adding depreciation of ₹3,03,88,100 and adjusting for profit on sale of medical equipment of ₹28,19,500, cash generated before working capital changes stood at ₹11,35,19,000. However, a sharp increase in trade receivables of ₹3,78,81,600 and loans and advances of ₹1,21,18,300 resulted in substantial cash outflow. Although trade payables increased by ₹4,11,30,900, providing some liquidity support, and provisions rose by ₹22,79,900, the overall working capital movement reduced operational cash generation. Income tax paid during the year amounted to ₹3,02,49,500. This indicates that while the hospital remains operationally profitable, its working capital management weakened during the year.

Investing Cash Flow

Under investing activities, the company reported a net cash outflow of ₹13,53,76,300 compared to ₹25,99,33,900 in the previous year. The outflow was mainly due to purchase of fixed assets worth ₹4,35,53,800 and capital work in progress amounting to ₹9,59,74,400, indicating continued investment in infrastructure and expansion. The company also received ₹41,51,900 from the sale of assets. Although capital expenditure remained substantial, it was lower than the previous year’s heavy investment of ₹25,31,23,500 in fixed assets and ₹68,78,000 in capital work in progress, suggesting that the major expansion phase may be stabilizing.

Financing Cash Flow

In financing activities, the company recorded a net cash inflow of ₹7,11,51,700 in FY 2024–25 compared to a net outflow of ₹30,25,000 in FY 2023–24. The inflow was primarily due to availment of an HDFC term loan of ₹6,96,55,200 along with share capital of ₹2,59,000 and share premium of ₹42,37,500. Despite paying a dividend of ₹30,00,000, the company strengthened its cash position through borrowings and minor equity infusion, reflecting reliance on external funding to support capital expenditure.

Net Cash Position

Overall, cash and cash equivalents increased from ₹6,98,20,600 at the beginning of the year to ₹8,27,01,900 at the end of the year. This shows a modest improvement in liquidity; however, the increase was largely supported by financing inflows rather than strong operational cash growth. The cash flow pattern indicates that Down Town Hospital Limited is in an expansion phase funded mainly through debt, while operational cash flows need improvement through better receivables and working capital management.

Financial ratios of Down Town Hospital Limited

Summary of the financial ratios for the years 2025 and 2024:

Current Ratio

The current ratio declined from 1.64 (2024) to 1.46 (2025). Although the ratio remains above 1, indicating that current assets are sufficient to meet short-term liabilities, the decrease suggests slightly tighter liquidity. The hospital still maintains reasonable short-term financial stability, but the downward trend indicates increased working capital pressure.

Debt-Equity Ratio

The debt-equity ratio increased from 0.30 to 0.45, reflecting higher reliance on borrowed funds in FY 2025. While the ratio is still within a moderate and manageable range, the increase indicates that the company has raised additional debt, which could increase financial risk if earnings do not grow proportionately.

Debt Service Coverage Ratio

The DSCR was exceptionally high at 4,770.47 in 2024, and no figure is reported for 2025. Such a high ratio in 2024 suggests very strong ability to service debt, possibly due to low finance costs or high operating profits. The absence of data for 2025 may indicate restructuring, negligible debt servicing obligations, or reporting changes. This needs further clarification from financial statements.

Return on Equity

ROE declined slightly from 11% to 10%. This indicates a marginal reduction in profitability generated from shareholders’ funds. While still positive, the fall suggests either lower profits or increased equity base without proportional earnings growth.

Inventory Turnover Ratio

The ratio marginally decreased from 10.43 to 10.32, showing stable inventory management. For a hospital, this reflects efficient management of medicines and medical supplies, with minimal inventory holding inefficiencies.

Trade Receivables Turnover Ratio

The ratio declined from 7.25 to 6.31, indicating slower collection from patients, insurers, or corporate clients. This suggests that receivables are taking longer to convert into cash, which may affect liquidity.

Trade Payables Turnover Ratio

The ratio decreased from 1.54 to 1.31, meaning the hospital is taking slightly longer to pay suppliers. This may be a deliberate working capital strategy to manage cash flows but could strain supplier relationships if prolonged.

Net Capital Turnover Ratio

The ratio improved from 10.29 to 11.35, showing better utilization of working capital to generate revenue. This is a positive sign, indicating improved operational efficiency despite slight liquidity pressure.

Net Profit Ratio

Net profit margin declined from 7.15% to 6.43%, indicating reduced profitability per rupee of revenue. This may be due to higher operating costs, increased finance expenses, or pricing pressures in healthcare services.

Return on Capital Employed

ROCE declined from 14.82% to 11.90%, reflecting reduced efficiency in generating returns from total capital employed. The decline aligns with the increased debt and slightly reduced profitability.

Return on Investments

Return on investments improved significantly from 4% to 22%, indicating better performance from invested surplus funds or strategic investments during FY 2025. This is a strong positive indicator.