Philips is a leading health technology company primarily involved in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips is a company with strong market leadership positions, an extensive customer base, strong innovation portfolio, talented employees, and a global purpose-driven brand.
Over the past 10 years, Philips has undergone a transformation to reshape its portfolio and become a focused health technology company. As a result, they are active in highly attractive segments that offer significant potential for growth and margin expansion. It is driven by innovation and designed to enable confidence.
Philips has invested in their R&D and manufacturing sites in Bangalore (India), Pune (India) to create an engaging work environment that fosters the attraction and retention of the best talent & also established innovation hub in Bangalore as their global strategy to provide access and serve businesses, market and customers. Koninklijke Philips N.V is the holding company.
Revenue for FY23 was INR 5,805 crore compared to the FY22 revenue of INR 5,546 crore, whereas during the same period profit before tax was INR 320 crore as compared to around INR 364 crore which it garnered in FY22. Also, net profit during the same time was INR 260 crore compared to the earlier year’s profit of INR 265 crore.
| DESCRIPTION | Mar-23 | Mar-22 | Mar-21 | Mar-20 | Mar-19 | Mar-18 | Mar-17 |
|---|---|---|---|---|---|---|---|
| Revenue from Operations | 5,734.0 | 5,481.4 | 4,842.7 | 4,534.2 | 4,278.8 | 3,884.9 | 3,705.8 |
| Total Income | 5,805.9 | 5,546.2 | 4,883.5 | 4,576.4 | 4,338.6 | 3,917.0 | 3,747.7 |
| EBITDA | 404 | 400 | 414 | 447 | 474 | 422 | 445 |
| PBT | 320.8 | 364.2 | 253.1 | 248.8 | 260.7 | 266.7 | 325.2 |
| PAT | 260.0 | 265.9 | 176.0 | 151.5 | 176.0 | 168.1 | 206.4 |
| Cash Flow from Operations | 341.3 | 131.7 | 717.0 | 186.2 | 75.5 | 129.5 | 300.5 |
| Cash Flow from Investing | -52.9 | 368.2 | -249.2 | -45.0 | -51.7 | -79.9 | -298.8 |
| Cash Flow from Financing | -1392.5 | -115.3 | -95.2 | -103.9 | -34.1 | -34.1 | -26.2 |
| Current Ratio | 1.4 | 2.1 | 1.8 | 1.89 | 1.72 | 1.67 | 1.64 |
| EPS | 45.21 | 46.23 | 30.61 | 26.35 | 30.61 | 29.23 | 35.90 |
Philips offers a wide range of products under various segments- Healthcare, Personal care, Sound and Vision, Lighting, Automotive, Accessories etc. It has signed a 10-year partnership deal with the Cloud Nine hospital group in India, they connected 257 beds across 26 tele-ICU locations. In addition, some 2,000 Zenition C-arms and 500 Affiniti ultrasound systems were shipped from their manufacturing plant in Chakan. Revenue is predominantly earned through the sale of products, leasing, customer services fees, recurring per-procedure fees for disposable devices, and software license fees. Philips’ sales channels are a mix of a direct sales force, (especially in all the larger markets), third-party distributors and an online sales portal. It varies by product, market, and price segment.
Last couple of years were an extra-ordinary time, wherein one of the biggest and unprecedented lockdowns in India was announced due to COVID -19 outbreak and its consequent impact on economy, consumer behaviors created both challenges and new opportunities. Despite the challenges, Philips had delivered a good growth over the previous financial year and both the brands Philips and Preethi delivered strong growth in key segments and maintained their market leadership position.
Philips had launched new products in different segments with unique value proposition which helped to carve out niche space in the competitive market. Products like air purifier, steamers, mixer, Image driven by AI. Philips filed 920 new patents in 2022, with a strong focus on the growth areas in health technology services and solutions. Philips earns substantial annual income from license fees and royalties.
Mr. S. M. Datta – Chairman
Mr. Daniel Mazon – Managing Director
Mr. Sudeep Agarwal – Chief Financial Officer
For any queries, reach out to: unlisted@rurashfin.com or Call: +91 224157 1111