Royalcare Super Speciality Hospital Ltd Annual Report and Financials

Royalcare Super Speciality Hospital Limited Balance Sheet (Rs in Lakhs)

Royalcare Super Speciality Hospital Limited Profit & Loss Statement (Rs in Lakhs)

Royalcare Super Speciality Hospital Limited Consolidated Cash Flow Statement (Rs in Lakhs)

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

Cash Flow from Operating Activities

Profit Before Taxation and After Exceptional Items: The profit before taxation increased from ₹1,556.27 million in FY 2022-23 to ₹2,431.50 million in FY 2023-24. This significant increase suggests a strong improvement in operational performance and profitability.

Adjustments for Depreciation and Amortization: Depreciation and amortization expenses increased slightly from ₹2,438.91 million to ₹2,453.27 million. This reflects ongoing investment in fixed assets, which depreciate over time.

Interest Income: The interest income rose from ₹154.48 million to ₹224.88 million. This increase indicates that the company earned more from its investments or cash reserves during FY 2023-24.

Finance Costs: Finance costs decreased from ₹2,683.63 million to ₹2,215.19 million. This reduction suggests that the company has managed its debt levels more effectively or has benefited from lower interest rates.

Operating Profit Before Working Capital Changes: The operating profit before changes in working capital increased from ₹6,524.33 million to ₹6,875.07 million. This indicates an overall improvement in the core operational efficiency of the company.

Adjustments for Working Capital Changes:

Inventories: There was an increase in inventories of ₹429.61 million in FY 2023-24 compared to a decrease of ₹250.71 million in FY 2022-23. This suggests that the company has stocked more goods, possibly in anticipation of higher sales or to avoid supply chain disruptions.

Trade Receivables: Trade receivables decreased by ₹658.12 million in FY 2023-24, compared to a decrease of ₹773.81 million in the previous year. This implies that the company collected more cash from its receivables in the current year.

Short Term Loans & Advances: There was an increase of ₹468.91 million in short-term loans and advances, reversing a decrease of ₹13.75 million in FY 2022-23. This could indicate a higher level of short-term financial management or new advances made.

Other Current Assets: The net increase in other current assets was minimal at ₹5.2 million compared to a decrease of ₹28.68 million in the previous year.

Current Liabilities: Current liabilities increased substantially by ₹2,456.94 million, compared to an increase of ₹381.5 million in FY 2022-23. This indicates a higher level of short-term obligations or accrued expenses.

Net Cash Generated from Operating Activities: The net cash generated from operating activities increased significantly from ₹5,896.24 million to ₹8,718.40 million, reflecting improved cash flow from core business operations.

2. Cash Flow from Investing Activities

Purchase of Fixed Assets: Expenditure on fixed assets decreased from ₹1,491.02 million to ₹1,042.69 million. This reduction suggests a slower pace of capital expenditure or more efficient asset acquisition.

Capital Work-in-Progress (WIP): There was a sharp increase in capital WIP from ₹1,253.52 million to ₹8,209.84 million. This substantial rise indicates major ongoing investments in long-term projects or infrastructure.

Proceeds from Sales: The company had minimal proceeds from asset sales at ₹0.67 million compared to none in the previous year.

Interest Received: Interest received increased from ₹154.48 million to ₹224.88 million, aligning with the higher interest income noted in operating activities.

Net Cash Used in Investing Activities: The net cash used in investing activities increased significantly from ₹2,590.06 million to ₹9,026.98 million. This increase is mainly due to the higher capital WIP, indicating substantial investment in long-term growth.

3. Cash Flow from Financing Activities

Finance Cost: Finance costs decreased from ₹2,683.62 million to ₹2,215.18 million, mirroring the decrease in the cost of finance observed in operating activities.

Increase in Share Capital & Reserves: There was a notable increase of ₹3,652.45 million in share capital and reserves, which could result from a new issue of shares or a significant capital infusion.

Long Term Borrowings: Long-term borrowings increased by ₹4,111.86 million compared to a decrease of ₹904.45 million in the previous year. This suggests that the company has raised new long-term debt, possibly to finance its capital investments.

Long Term Provisions: Long-term provisions decreased slightly by ₹85.26 million, compared to a minor decrease of ₹1.55 million in FY 2022-23.

Long Term Trade Payables: There was a decrease in long-term trade payables by ₹124 million compared to an increase of ₹460.67 million in the previous year. This change might reflect a reduction in outstanding trade payables or payments made.

Long Term Loans & Advances: There was a significant decrease in long-term loans and advances by ₹2,444.66 million compared to a decrease of ₹132.46 million in FY 2022-23.

Non-Current Assets and Investments: There were small decreases in non-current assets by ₹366.07 million and non-current investments by ₹0.55 million.

Net Cash from Financing Activities: The net cash from financing activities improved from a use of ₹3,632.83 million to a source of ₹2,529.14 million. This positive change is primarily due to increased share capital and long-term borrowings.

Financial Ratios of Royalcare Super Speciality Hospital Limited

Here is a summary of the financial and operational metrics for Royalcare Super Speciality Hospital Limited for the year 2024 & 2023:

Current Ratio

Insight: The current ratio measures the company’s ability to pay short-term liabilities with its short-term assets. An increase from 0.62 to 0.75 indicates improved liquidity and a better ability to cover short-term obligations. However, a current ratio of 0.75 still suggests that the company may be operating with less liquidity, which could be a concern if it encounters unexpected short-term financial needs.

Debt Equity Ratio

Insight: The debt equity ratio measures the proportion of debt used relative to equity. A decrease from 1.76 to 1.44 reflects a reduction in leverage and suggests that the company has improved its financial stability by either reducing its debt or increasing equity. This is generally a positive indicator as it implies lower financial risk.

Debt Service Coverage Ratio (DSCR)

Insight: The DSCR measures the company’s ability to service its debt obligations with its operating income. An increase from 1.12 to 1.29 indicates a stronger capacity to cover interest and principal repayments from operating cash flows. This improvement suggests better financial health and a lower risk of default.

Return on Equity (ROE)

Insight: ROE measures the profitability relative to shareholders ' equity. An increase from 12.45% to 14.91% indicates improved profitability and effective use of shareholders ' funds. This suggests that the company is generating higher returns for its shareholders.

Inventory Turnover Ratio

Insight: This ratio indicates how efficiently the company manages its inventory. A decrease from 39.37 to 29.81 suggests a slower turnover of inventory, which could imply either an increase in stock levels or slower sales. This might indicate a need for improved inventory management or a potential decline in demand.

Trade Receivable Ratio

Insight: This ratio measures the efficiency of the company in collecting receivables. A decrease from 23.52 to 16.52 signifies improved collection efficiency and shorter receivables cycles, which positively affects cash flow.

Trade Payable Ratio

Insight: This ratio reflects how quickly the company pays its suppliers. A decrease from 10.80 to 5.12 suggests that the company is paying its suppliers more promptly. While this improves supplier relations, it may also indicate a reduction in the company’s credit terms or a shift in its cash flow management strategy.

Net Capital Turnover Ratio

Insight: This ratio indicates how efficiently the company uses its net capital to generate sales. A negative ratio for both years suggests that the company has negative sales relative to its capital base. The increase in the negative value from -11.02 to -13.89 indicates worsening performance in utilizing capital for generating sales.

Net Profit Ratio

Insight: The net profit ratio shows the percentage of revenue that translates into profit. An increase from 5.13% to 7.36% indicates improved profitability and operational efficiency. This suggests that the company is better at converting its sales into actual profit.

Return on Capital Employed (ROCE)

Insight: ROCE measures the efficiency of capital use in generating profits. A decrease from 11.50% to 9.80% suggests a slight decline in capital efficiency. This may indicate that the capital employed is not generating as high returns as it did in the previous year.

Return on Investment (ROI)

Insight: ROI measures the return on investments made. An increase from 4.30% to 5.80% indicates improved returns on investments, showing that the company is achieving better financial performance from its investments.