Royalcare Super Speciality Hospital Ltd Annual Report and Financials

Royalcare Super Speciality Hospital Limited Standalone Balance Sheet (Rs. In Lakhs)

Royalcare Super Speciality Hospital Limited Standalone Profit & Loss (Rs. In Lakhs)

 Royalcare Super Speciality Hospital Limited Standalone Cash Flow Statement (Rs. In Lakhs)

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

Cash Flow from Operating Activities

In 2025, the company generated ₹52,609 lakhs from operating activities, which is lower than the ₹87,184 lakhs generated in 2024. The fall in operating cash flow was mainly due to a drop in profit before tax and unfavorable working capital movements, such as higher inventories and loans & advances. Although operations are still yielding positive cash, the reduction compared to the previous year suggests that the company’s core business efficiency has weakened.

Cash Flow from Investing Activities

The company reported a heavy cash outflow of ₹2,18,319 lakhs in 2025, compared to ₹90,270 lakhs in 2024. This large outflow was primarily because of very high spending on capital work in progress and fixed asset purchases. Only a small inflow came from interest income and minor asset sales. This indicates that the company is in an aggressive expansion phase, putting significant money into building future capacity. While this may help in long-term growth, it reduces liquidity in the short term.

Cash Flow from Financing Activities

In 2025, financing activities provided a strong inflow of ₹1,92,591 lakhs, which was far higher than the ₹25,291 lakhs in 2024. The major contributors to this inflow were fresh equity raised and an increase in borrowings. However, a portion of this inflow was used to pay finance costs and meet repayment obligations. This shows that the company relied heavily on external funding—both equity and debt—to support its heavy investments during the year.

 Net Cash Position

As a result of the above movements, the company recorded a net increase in cash of ₹26,881 lakhs in 2025 compared to ₹22,206 lakhs in 2024. The closing cash balance for 2025 stood at ₹54,130 lakhs, an improvement over ₹27,249 lakhs in the previous year. Despite weaker operating cash flows, the overall cash position improved due to large financing inflows.

Royalcare Super Speciality Hospital Limited Standalone Financial Ratios

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

Current Ratio

The current ratio improved from 0.75 in 2024 to 1.04 in 2025, which means the company is now in a better position to cover its short-term liabilities with its short-term assets. Although it is just above 1, showing a slight improvement in liquidity, it is still at a level that suggests tight working capital management.

Debt-Equity Ratio

The debt-equity ratio declined slightly from 1.44 in 2024 to 1.34 in 2025. This indicates that the company is still heavily dependent on borrowed funds compared to its equity base, though leverage has reduced a bit. High debt levels increase financial risk, but the small reduction shows an effort towards balancing capital structure.

Debt Service Coverage Ratio (DSCR)

DSCR fell from 1.29 in 2024 to 1.13 in 2025. This means the company’s ability to service its debt obligations (interest + principal) has weakened. A ratio close to 1 indicates that the company is just about managing to meet its debt repayments without much cushion.

Return on Equity (ROE)

ROE dropped significantly from 14.91% in 2024 to 5.87% in 2025. This shows that the company has generated much lower returns for its shareholders compared to the previous year. The decline reflects reduced profitability and weaker efficiency in utilizing shareholder funds.

Inventory Turnover Ratio

The inventory turnover ratio fell from 29.81 in 2024 to 23.60 in 2025, which suggests that inventory is moving slower than before. This can tie up working capital and may indicate either lower sales growth or higher stock levels.

Trade Receivables Turnover Ratio

This ratio decreased slightly from 16.52 in 2024 to 15.30 in 2025, showing that the company is collecting payments from its customers at a slower pace. While still efficient, the dip signals a need to monitor receivables closely to avoid cash flow pressures.

Trade Payables Turnover Ratio

The trade payables turnover ratio declined from 5.12 in 2024 to 3.45 in 2025. This indicates that the company is taking longer to pay its suppliers. While this may help conserve cash in the short term, stretching payments too long can affect supplier relationships.

Net Capital Turnover Ratio

This ratio moved sharply from a negative -13.89 in 2024 to a positive 54.26 in 2025. A negative ratio earlier suggested inefficiency or losses in capital utilization, but the sharp turnaround indicates that the company has significantly improved its efficiency in generating revenue from its capital base.

Net Profit Ratio

The net profit ratio declined from 7.36% in 2024 to 4.27% in 2025. This shows that the company is earning lower profits for every ₹100 of sales, pointing towards reduced margins due to either higher costs, lower sales realization, or increased interest burden.

Return on Capital Employed (ROCE)

ROCE fell from 9.77% in 2024 to 4.77% in 2025, which highlights weaker efficiency in generating returns from the overall capital employed (equity + debt). This decline is a sign that both debt and equity are being utilized less effectively compared to last year.

Return on Investment (ROI)

The ROI dropped from 5.80% in 2024 to 2.50% in 2025. This suggests that the company earned lower returns on its investments, indicating reduced investment efficiency and weaker profitability.