Ganga Care Hospital Latest Annual Report, Balance Sheet and Financials

Ganga Care Hospital Limited Standalone Balance Sheet (Rs. in Crores)

Ganga Care Hospital Limited Standalone Profit & Loss Statement (Rs in Crores)

Ganga Care Hospital Limited Standalone Cash Flow Statement (Rs in Crores)

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

Cash Flow from Operating Activities

Ganga Care Hospital Limited generated moderate operating cash flow, though it declined compared to the previous year. Net profit before tax fell from ₹11.12 crore to ₹8.02 crore, reflecting some pressure on profitability. Despite this, non-cash adjustments such as depreciation (₹2.78 crore), provisions, and finance costs supported cash generation, while interest income acted as a deduction. Cashflow generated from operations stood at ₹7.37 crore versus ₹8.46 crore in FY24, showing a slight decline mainly due to lower earnings and higher tax outflow. Income tax paid increased sharply from ₹1.15 crore to ₹3.23 crore, significantly reducing net operating cash. As a result, net cash from operating activities dropped to ₹4.14 crore from ₹7.31 crore, indicating weaker conversion of profits into cash, though the company still remains cash-positive from core hospital operations.

Cash Flow from Investing Activities

Investing activities show a clear phase of expansion and liquidity deployment. The company increased investment in fixed deposits significantly, with outflows rising to ₹5.78 crore from ₹1.94 crore in the previous year, indicating surplus funds are being parked for returns or liquidity management. Capital expenditure also rose slightly, with ₹2.18 crore spent on property, plant, and equipment, reflecting ongoing infrastructure development or hospital expansion. These outflows were partially offset by higher interest income from fixed deposits at ₹2.71 crore compared to ₹2.04 crore last year, which helped cushion the impact. Overall, net cash from investing activities remained negative at ₹5.24 crore, showing that funds are being actively deployed into both financial assets and physical expansion rather than being retained as idle cash.

Cash Flow from Financing Activities

Financing cash flows remained consistently negative, indicating repayment-driven rather than expansion-driven financing activity. The company paid ₹1.05 crore towards lease liabilities and ₹0.85 crore as interest expenses, both broadly in line with the previous year. There is no evidence of fresh borrowing or equity infusion, suggesting a stable and conservative capital structure without aggressive leverage expansion. Overall, net cash used in financing activities stood at ₹1.90 crore, slightly higher than the previous year due to lease repayments, reflecting steady financial obligations being met without external funding support.

Net Increase / Decrease in Cash & Cash Equivalents

The combined impact of operating, investing, and financing activities resulted in a net cash outflow of ₹3.00 crore, compared to a positive inflow of ₹4.12 crore in FY24. Cash and cash equivalents declined from ₹5.95 crore to ₹2.94 crore, indicating a reduction in liquidity during the year. The decline is primarily driven by higher investments in fixed deposits and increased tax payments rather than operational stress. Despite the reduction in cash balance, the company continues to generate positive operating cash flow, which supports financial stability, though the shift in cash allocation suggests a more conservative and investment-oriented treasury approach. 

Financial ratios of Ganga Care Hospital Limited.

Summary of Financial Ratios for the year 2025 and 2024.

Current Ratio

The current ratio improved from 5.98 in FY24 to 7.25 in FY25, indicating a very strong short-term liquidity position. This suggests the company has significantly more current assets compared to current liabilities, which provides a high buffer for meeting near-term obligations. However, such a high ratio may also indicate idle or under-utilised current assets, especially in a hospital business where extremely high liquidity is not always necessary.

Debt Service Coverage Ratio

The debt service coverage ratio declined from 6.68 to 5.80, though it remains at a very comfortable level. This indicates that the company is still generating strong enough earnings to cover its debt obligations multiple times. The slight drop suggests reduced profitability or cash flow efficiency, but overall debt servicing ability remains very strong and low-risk.

Return on Equity

ROE dropped significantly from 16.43% to 10.08%, reflecting a notable decline in shareholder returns. This reduction aligns with lower net profit margins and reduced profitability during the year. It suggests that while the company is still generating positive returns, efficiency in using shareholders’ capital has weakened considerably in FY25.

Inventory Turnover Ratio

The inventory turnover ratio improved slightly from 14.01 to 14.61, indicating better efficiency in managing inventory levels. In a hospital business, this suggests improved utilisation of medical consumables and better inventory control. The change is positive but marginal, showing stable operational efficiency.

Trade Receivables Turnover Ratio

This ratio declined from 3.95 to 2.97, indicating slower collection of receivables. This is a negative signal as it suggests that the company is taking longer to convert credit sales into cash. It aligns with working capital strain seen in cash flow data, and may require tighter credit control or improved collection practices.

Trade Payables Turnover Ratio

The trade payables turnover ratio increased from 5.19 to 6.16, meaning the company is paying suppliers faster than before. While this may reflect stronger liquidity, it could also reduce short-term cash retention. This shift suggests a more conservative supplier payment approach or reduced credit period benefits.

Net Capital Turnover Ratio

This ratio declined from 1.42 to 1.22, indicating slightly lower efficiency in generating revenue from working capital. It suggests that more capital is being deployed relative to revenue generation, which may be due to higher investment in assets or slower revenue growth. Overall, it reflects moderate efficiency pressure in capital utilisation.

Net Profit Margin

Net profit margin declined sharply from 16.16% to 11.03%, showing a clear drop in overall profitability. This decline is consistent with lower operating performance and higher tax burden seen in cash flows. It indicates that the company’s ability to convert revenue into profit has weakened significantly in FY25.

Return on Capital Employed

ROCE fell from 21.57% to 14.34%, reflecting reduced efficiency in deploying total capital (both equity and debt). This decline indicates that the business generated lower returns from its capital base during the year, mainly due to reduced profitability and possibly higher capital deployment in low-yield assets.

Return on Investment

ROI decreased from 17.30% to 11.67%, indicating lower returns from invested funds. This decline aligns with overall profitability pressure and suggests that investment efficiency has weakened in FY25. While still positive, the trend indicates reduced capital productivity compared to the previous year.