Healthcaps India Limited Annual Report, Balance Sheet & Financials

Healthcaps India Limited Balance Sheet (Rs in Lakhs) 

Healthcaps India Limited Profit & Loss Statement (Rs in Lakhs)

 Healthcaps India Limited Cash Flow Statement (Rs in Lakhs)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flows from Operating Activities: The company reported a decrease in profit before tax to Rs. 2,900.28 lakhs for 2024, down from Rs. 4,051.89 lakhs in 2023. This reduction reflects a decline in pre-tax earnings. Adjustments to profit include depreciation and amortization, which increased to Rs. 700.17 lakhs from Rs. 638.47 lakhs, indicating higher non-cash charges due to asset usage. The company realized a gain on the sale of fixed assets amounting to Rs. 54.51 lakhs, compared to a gain of Rs. 25.30 lakhs in the previous year. Interest earned decreased slightly to Rs. -30.18 lakhs from Rs. -27.32 lakhs, while net interest paid was Rs. 712.65 lakhs, up from Rs. 691.33 lakhs. After adjusting for these items, the profit from operating activities was Rs. 4,337.44 lakhs, a decrease from Rs. 5,375.86 lakhs.

In terms of working capital changes, the company experienced a decrease in inventories (Rs. 2.19 lakhs) compared to a significant reduction of Rs. -725.05 lakhs in 2023, suggesting improved inventory management. Trade receivables increased by Rs. -2,756.58 lakhs, a larger increase compared to Rs. -2,466.22 lakhs in the prior year, which could indicate slower collections. Short-term loans and advances decreased by Rs. -733.54 lakhs, an improvement from Rs. -881.04 lakhs in 2023. Changes in other assets and liabilities were also noted, including an increase in trade payables to Rs. 943.21 lakhs from Rs. 458.40 lakhs. The net cash generated from operating activities was Rs. 1,926.21 lakhs, a slight decrease from Rs. 2,040.15 lakhs in 2023, reflecting decreased operational cash flow despite positive adjustments.

Cash Flows from Investing Activities: In investing activities, the company spent Rs. -868.01 lakhs on tangible and intangible assets, a reduction from Rs. -2,176.92 lakhs in the previous year, indicating a slowdown in capital expenditures. Proceeds from the sale of assets were Rs. 20.01 lakhs, up from Rs. 8.73 lakhs, while there was a decrease in other non-current assets by Rs. -71.97 lakhs. Fixed deposits increased by Rs. 188.32 lakhs, compared to a decrease of Rs. -149.03 lakhs in 2023. Interest received was Rs. 30.18 lakhs, up from Rs. 27.31 lakhs. The net cash used in investing activities was Rs. -701.46 lakhs, an improvement from Rs. -2,290.42 lakhs, reflecting reduced cash outflows for investments.

Cash Flows from Financing Activities: In financing activities, the company had net proceeds from long-term borrowings of Rs. -1,634.99 lakhs, compared to Rs. -114.57 lakhs in the previous year, indicating increased borrowing. Short-term borrowings increased by Rs. 1,151.61 lakhs, reversing the previous year’s decrease. Interest and other finance costs remained relatively stable at Rs. -712.65 lakhs, up from Rs. -691.33 lakhs. Overall, the net cash flow from financing activities was Rs. -1,196.03 lakhs, a significant decrease from Rs. 84.28 lakhs, highlighting greater cash outflows related to debt repayments and financing costs.

Net Increase/Decrease in Cash and Cash Equivalents: The net increase in cash and cash equivalents was Rs. 28.71 lakhs, compared to a decrease of Rs. -165.99 lakhs in 2023. This positive movement was supported by a closing balance of Rs. 43.31 lakhs, up from Rs. 14.60 lakhs at the beginning of the year. The components of cash and cash equivalents included a balance of Rs. 304.25 lakhs in cash and bank balances, with fixed deposits of Rs. 260.93 lakhs, leading to a total cash and cash equivalents balance of Rs. 43.31 lakhs.

Financial Ratios of Healthcaps India Limited

Here is a summary of the financial and operational metrics for Healthcaps India Limited for the year 2024 and 2023:

Current Ratio: The current ratio decreased slightly to 1.72 times in 2024 from 1.76 times in 2023. This minor decline indicates a marginal reduction in the company’s ability to cover short-term liabilities with short-term assets. Although still above the critical threshold of 1, the decrease suggests a slight weakening in short-term liquidity, possibly due to increased short-term obligations or lower current assets.

Debt-Equity Ratio: The debt-equity ratio improved to 0.48 in 2024 from 0.57 in 2023. This reduction indicates that the company has reduced its reliance on debt relative to equity, suggesting a stronger equity base and lower financial leverage. A lower debt-equity ratio reflects improved financial stability and reduced financial risk, as the company is less dependent on borrowed funds.

Debt Service Coverage Ratio: The debt service coverage ratio declined to 1.77 in 2024 from 2.55 in 2023. This decrease indicates a reduction in the company’s ability to cover its debt obligations (interest and principal payments) from its operating cash flow. Although still positive, the lower ratio suggests that the company might face tighter cash flow constraints in servicing its debt, which could impact financial flexibility.

Return on Equity (ROE): The return on equity ratio decreased to 12.23% in 2024 from 20.06% in 2023. This decline signifies a reduction in profitability relative to shareholders’ equity. While still positive, the drop in ROE suggests that the company has been less effective in generating profits from shareholders’ equity over the past year, potentially due to higher costs or lower revenue growth.

Inventory Turnover Ratio: The inventory turnover ratio fell to 21 times in 2024 from 32 times in 2023. This decline indicates a slower rate at which inventory is being sold and replaced. A lower ratio could imply overstocking or slower sales, which may affect liquidity and inventory management efficiency.

Trade Receivables Turnover Ratio: The trade receivables turnover ratio increased to 190 times in 2024 from 148 times in 2023. This improvement reflects a higher efficiency in collecting receivables, as the company is now converting its receivables into cash more quickly. The higher ratio suggests better credit control and faster collections.

Trade Payable Turnover Ratio: The trade payable turnover ratio increased significantly to 91 times in 2024 from 68 times in 2023. This suggests that the company is paying its suppliers more frequently. While a higher ratio indicates prompt payment, it may also suggest reduced cash flow or a shift in payment strategies.

Capital Turnover Ratio: The capital turnover ratio decreased to 3.31 times in 2024 from 4.02 times in 2023. This decline indicates a reduction in the efficiency of generating sales from capital employed. A lower ratio implies that the company is less effective at using its capital to generate revenue, which could be due to slower sales growth or increased capital investments.

Net Profit Margin Ratio: The net profit margin ratio decreased to 8.80% in 2024 from 12.10% in 2023. This reduction reflects a lower percentage of revenue being converted into net profit, indicating increased costs or reduced revenue margins. The decrease suggests that the company’s profitability has been under pressure, possibly due to higher operating expenses or competitive pricing pressures.

Return on Capital Employed (ROCE): The return on capital employed ratio declined to 15.12% in 2024 from 20.68% in 2023. This decrease indicates a reduction in the efficiency of generating profits from capital employed. While still a positive return, the drop suggests that the company’s use of capital to generate earnings has become less effective over the year.

Return on Investment (ROI): The return on investment ratio decreased to 11.53% in 2024 from 18.23% in 2023. This decline indicates a lower return on the investments made by the company. The reduced ROI reflects decreased profitability relative to the investments made, suggesting that investments may not have generated the expected returns or that costs have increased.