Metropolis Healthcare has released its financial results for the second quarter of the fiscal year 2024-2025, showcasing a strong performance. The company has shown improvements in key financial metrics such as interest management, debt reduction, and cash flow generation.
The company's score has increased from 8 to 19 over the past three months, largely due to its adept management of interest payments. The Operating Profit to Interest ratio has reached an impressive 18.76 times, the highest in the last five quarters. The company has also reduced its borrowing relative to equity capital, achieving a Debt-Equity Ratio of just 0.16 times.
Metropolis Healthcare has reported a significant increase in cash revenues generated from its business operations, with the Operating Cash Flow reaching a peak of Rs 264.07 crore over the past three years. The company's net sales have also increased, with the highest figure recorded at Rs 349.79 crore in the last five quarters.
Profitability metrics show a strong financial health, with the Operating Profit Margin climbing to 25.70% and the Profit Before Tax increasing by 30.9% compared to the average of the previous four quarters. The Profit After Tax has also seen a positive trajectory, peaking at Rs 46.52 crore, reflecting a 35.9% increase over the same average period.
However, the company faces challenges in its short-term liquidity position, as Cash and Cash Equivalents have declined over the last six half-yearly periods. The increase in non-operating income raises questions about its sustainability. Metropolis Healthcare must address these challenges while maintaining its growth momentum.