Shifa International Hospital Islamabad is the one and only hospital listed on the country's stock exchange. The organisation is a vibrant entity whose shares are being quoted at much higher than the par value.
Its shareholders should be more than satisfied that on the one hand it is healing serious patients and on the other it is enriching them with capital gains and dividends which are better than the returns on investment in deposit receipts of commercial banks. This shows that good deeds are also rewarded in this world both in terms of physical and mental wealth.
During the year under review the company posted net revenue at Rs 1.162 billion and net profit after taxation at Rs 130.38 million which were the highest figures in the 19 years career of this hospital.
During the year 2005-06, the hospital's actual in patient room occupancy increased to 65.41 thousand bed days as compared to 57.81 thousand bed days in the preceding financial year 2004-05 registering 13.1% increase. In terms of capacity utilisation, it is 67.6% as compared to 67.3% in the preceding year's.
The Annual Report noted that the under-utilisation reflects the pattern of patient turnover which is beyond the management control.
Shifa International Hospitals Limited was incorporated in the Federal capital Islamabad on September 29, 1987, as a private limited company under the companies ordinance, 1984 and converted into public limited company on October, 1989. The principal activity of the company is to establish and run medical centres and hospitals in Pakistan. In 1993, the company established its first hospital in Islamabad. In the entire northern areas and the upper region of Pakistan, Shifa International Hospital Islamabad is looked up by patients, suffering from serious diseases, as a last resort.
It has been reported in the Annual Report 2006, of the company that Shifa Hospital International Islamabad was conceived by a small group of dedicated sponsors, Pakistani doctors and other healthcare professionals who were working in the USA.
With a modest beginning as a products limited establishment a little over 19 years ago Shifa has grown into one of the top ranking hospitals of Pakistan.
The Annual Report of the company gives account of its wide spectrum of institutions in the healthcare field which encompasses various departments in the hospital and various educational, training institutions and welfare. The Report gives account of its wonderful participation in the relief activities for the victims of earthquake of October 2005.
The Annual Report's detailed review cannot be encapsulated in this 'Brief', so it is recommended to readers to see this Annual Report.
For example only few of its achievements are given below: The organisation has established Shifa College of Medicine functioning since 1998 and has seen its first batch of graduate in 2003.
There is another remarkable institution Shifa College of Nursing functioning since 2003 and its first batch of graduate will come out in 2007. Shifa Tameer-e-Millat University has been approved by Higher Education Commission (HEC) and Federal Shifa College of Pharmacy, Shifa College of paramedics and Shifa College of Dentistry are three other educational programmes of the council that are intended to be functional in the very near future.
Shifa International Hospitals Ltd is quoted on the Karachi, Lahore and Islamabad stock exchanges. The market value of its share has remained throughout the last one year at much higher than its par value as it has ranged between Rs 13.75 and Rs 29.25 per share.
On October 5, 2006, the closing market price of its share was quoted at Rs 23.40 per share which is more than double of the par value. At the current market value its market capitalisation has soared to Rs 1.18 billion from the paid up capital of Rs 0.505 billion. Its total asset base has reached Rs 1.70 billion.
From the six years statistics it can be seen at a glance that both profitability and net revenue have trended upward steeply. The company must be appreciated for the excellent publications of financial informations regularly ensuring compliance with the statutory and regulatory obligations.
The Annual Report 2006 of the company is testimony of the competence of its Finance & Accounts Department in spite of the fact that it is the one and only listed hospital in the country.
During FY 2005-06 the company generated net revenue at Rs 1.162 billion (FY 2004-05 Rs 0.922 billion) registering impressive growth of 26.15% and crossing for the first time rupees one billion threshold in revenue.
Profit after taxation amounted to Rs 130.38 million which works out to Earning Per Share at Rs 2.58 which showing 52 paisas increase over previous year's. The Board declared cash dividend at Re 1 per share which is identical to last year's payout and the yield to investors is much better compared to return on commercial bank's securities.
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Performance Statistics (Million Rupees)
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30th June 2006 2005
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Share Capital-Paid-up: 505.14 505.14
Reserves & Surplus: 136.66 54.00
Shareholders Equity: 641.80 559.14
Surplus on Revaluation of
Property, Plant & Equipment: 228.83 231.62
L.T. Debts: 242.55 236.72
Deferred Liabilities: 124.10 102.36
Current Liabilities: 466.07 349.70
Fixed Assets: 1,339.24 1,192.98
L.T. Investment: - 5.06
L.T. Deposits: 7.78 6.08
Current Assets: 356.33 275.42
Total Assets: 1,703.35 1,479.54
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Revenue, Profit & Pay Out
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Net Revenue: 1,162.60 921.59
Other Operating Income: 7.96 4.70
Total Revenue: 1,170.56 926.29
Operating (Costs): (941.35) (738.18)
Finance (Cost): (40.01) (23.90)
(Depreciation/Amortization): (73.50) (64.98)
Profit Before Taxation: 189.20 164.20
Profit After Taxation: 130.38 104.15
Earnings Per Share (Rs): 2.58 2.06
Dividend Cash (%): 10.00 10.00
Market Price of Share (Rs) on 05/10/06: 23.40 -
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Financial Ratios
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Price/Earning Ratio: 9.07 -
Book Value Per Share: 12.70 11.07
Price/Book Value Ratio: 1.84 -
Debt/Equity Ratio: 22:78 23:77
Current Ratio: 0.76 0.79
Asset Turn Over Ratio: 0.69 0.63
Net Profit Margin (%): 11.14 11.24
R.O.E. (%): 20.31 18.62
R.O.A. (%): 7.65 7.03
R.O.C.E. (%): 10.54 9.28
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