Thyrocare Technologies – Net loss of Rs. 18 Crore due to Covid-19 – Q4FY20
Thyrocare Technologies involves in provide Quality Diagnostic services in the Health care Segment in India. Established in the year 1996, the company conducts Clinical tests and laboratories.
Currently, the Market capitalization for Thyrocare is Rs. 2800 Crore. Book value comes at Rs. 75 per Share. It is virtually a Debt Free Company, where the Debt to Equity stands at 0.03. The Promoters holding is said to be around 66 Percent and there is no pledging on Promoters Share holding.
The Interest coverage ratio (ICR) is also comes with sufficient numbers, around 120 Times. For the Last five years, the Sales growth is up 20 Percent and the Compounded profit growth were at 15 Percent. The Return on Equity (ROE) for the Thyrocare is 19 Percent over the past 5 years.
In Q4FY20 – quarterly results, the Company reported its revenue of Rs. 94 Crore. The Expenditure was Rs. 64 Crore in the said period. Rs. 44.33 Crore has been allocated in the Exceptional Items. It is said to be the provision for impairment of investments in Subsidiary.
As per the Financial report of Thyrocare, it is stated as below,
The Company assessed the recoverable amount of investment in the wholly owned subsidiary Nueclear Healthcare Limited, as at 31 March 2020, as the higher of Fair Value less Cost of Disposal (the ‘FVCOD’) and the Value in Use (the ‘VIU’), in view of the accumulated business losses since inception and also considering the changes in the market conditions and business environment in India including due to the outbreak of COVID epidemic and effects thereof in the foreseeable future.
This has resulted in an impairment charge of INR 44.33 crore being recognised as exceptional charge for the quarter and year ended 31 March 2020. The Company continues to assess and endeavours to take appropriate steps to optimise the profitability of Nueclear Healthcare Limited and also combat the potential impacts of the COVID epidemic on the business of Nueclear Healthcare Limited.
Therefore, the company posted a net loss of Rs. 18 Crore in the Fourth quarter of FY2019-20. For the Financial year 2019-20, the standalone revenue from operations are Rs. 400 Crore and the Net profit was Rs. 79.44 Crore.
Earlier the revenue in the FY2018-19 was said to be Rs. 370 Crore and the Net profit was Rs. 95 Crore. The Cash Flow from operating activity seems Positive. As per September 2019 quarter, the Reserves in Balance Sheet stood at Rs. 344 Crore.
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