Stock Analysis

Rainbow Children’s Medicare Limited Reports Strong Growth in Q4 and FY 2023

Financial Performance Overview

Rainbow Children’s Medicare Limited has recently released its audited standalone financial results for the quarter and year ending on 31 March 2023. The report reveals the company’s robust financial health and substantial growth over the past fiscal year.

Here are the key takeaways from the financial report:

  • The company’s revenue from operations for the year ending in March 2023 was Rs. 11,139.90 million, a significant increase from the previous year’s Rs. 9,245.95 million.
  • Other income, which complements the operational revenue, also saw a rise, amounting to Rs. 312.29 million in FY 2023 as compared to Rs. 208.19 million in the previous year.
  • The total income, a combination of revenue from operations and other income, stood at Rs. 11,452.19 million for FY 2023, compared to Rs. 9,454.14 million in FY 2022.

Expenditure Analysis

On the expense side, the company reported the following:

  • The cost of medical consumables and pharmacy items consumed was Rs. 1,501.22 million in FY 2023, a decrease from Rs. 1,877.98 million in the previous year.
  • Employee benefits expenses increased from Rs. 1,094.12 million in FY 2022 to Rs. 1,360.38 million in FY 2023.
  • The company’s finance costs amounted to Rs. 520.89 million in FY 2023, a slight increase from Rs. 500.05 million in FY 2022.
  • Depreciation and amortization expenses also rose from Rs. 769.87 million in FY 2022 to Rs. 837.08 million in FY 2023.
  • The professional fees to doctors increased significantly from Rs. 1,857.80 million in FY 2022 to Rs. 2,554.04 million in FY 2023.

Profit and Earnings Per Share

After accounting for expenses, Rainbow Children’s Medicare Limited reported a profit before tax of Rs. 2,728.34 million for the year ending in March 2023, a substantial increase from the previous year’s Rs. 1,897.44 million.

The total comprehensive income for the year stood at Rs. 2,062.54 million, an increase from Rs. 1,432.65 million in the previous year.

Furthermore, the company’s earnings per share (EPS) for FY 2023 stood at Rs. 20.40 (basic) and Rs. 20.40 (diluted), a noticeable increase from Rs. 15.18 (basic) and Rs. 14.87 (diluted) in FY 2022.

Summary

The year 2023 proved to be a year of robust growth for Rainbow Children’s Medicare Limited. The company’s financial performance reflects its resilience and adaptability in the face of an evolving healthcare landscape. With its focus on providing quality healthcare, the company is well-positioned to continue its growth trajectory in the coming years.

Disclaimer: The information provided in this article is based on the financial report published by Rainbow Children’s Medicare Limited. Investors are advised to conduct their own due diligence or consult a financial advisor before making any investment decisions.