HINDUSTAN COPPER 2022-23 Annual Report Analysis

Thu, 21 Sep

HINDUSTAN COPPER has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

HINDUSTAN COPPER Income Statement Analysis

• Operating income during the year fell 7.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.3% in FY23 as against 28.1% in FY22.
• Depreciation charges increased by 16.7% and finance costs decreased by 43.2% YoY, respectively.
• Other income grew by 90.9% YoY.
• Net profit for the year declined by 21.1% YoY.
• Net profit margins during the year declined from 20.5% in FY22 to 17.6% in FY23.

HINDUSTAN COPPER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,219	16,773	-7.9%
Other income	Rs m	502	959	90.9%
Total Revenues	Rs m	18,722	17,732	-5.3%
Gross profit	Rs m	5,122	4,920	-3.9%
Depreciation	Rs m	1,499	1,749	16.7%
Interest	Rs m	305	173	-43.2%
Profit before tax	Rs m	3,821	3,957	3.5%
Tax	Rs m	80	1,004	1,149.7%
Profit after tax	Rs m	3,741	2,953	-21.1%
Gross profit margin	%	28.1	29.3
Effective tax rate	%	2.1	25.4
Net profit margin	%	20.5	17.6

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HINDUSTAN COPPER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 10 billion as compared to Rs 10 billion in FY22, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 172 million as compared to Rs 2 billion during FY22, a fall of 91.1%.
• Current assets fell 17% and stood at Rs 9 billion, while fixed assets rose 12% and stood at Rs 21 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 30 billion as against Rs 30 billion during FY22, thereby witnessing a growth of 1%.

HINDUSTAN COPPER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	19,112	20,822	8.9
Current Liabilities	Rs m	9,923	10,172	2.5
Long-term Debt	Rs m	1,931	172	-91.1
Total Liabilities	Rs m	29,574	30,006	1.5
Current assets	Rs m	10,559	8,803	-16.6
Fixed Assets	Rs m	19,015	21,203	11.5
Total Assets	Rs m	29,574	30,006	1.5

HINDUSTAN COPPER Cash Flow Statement Analysis

• HINDUSTAN COPPER's cash flow from operating activities (CFO) during FY23 stood at Rs 7 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -462 million from the Rs 4 billion net cash flows seen during FY22.

HINDUSTAN COPPER Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	10,522	6,736	-36.0%
Cash Flow from Investing Activities	Rs m	-4,039	-3,373	-
Cash Flow from Financing Activities	Rs m	-2,511	-3,825	-
Net Cash Flow	Rs m	3,972	-462	-

Current Valuations for HINDUSTAN COPPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an decline from the EPS of Rs 3.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 154.5, stands at 52.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 22.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	18.8	17.3
TTM Earnings per share	Rs	3.9	3.1
Diluted earnings per share	Rs	3.9	3.1
Price to Cash Flow	x	21.0	22.0
TTM P/E ratio	x	29.4	52.3
Price / Book Value ratio	x	7.6	5.0
Market Cap	Rs m	145,996	103,278
Dividends per share (Unadj.)	Rs	1.2	0.9

Ratio Analysis for HINDUSTAN COPPER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.1x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 23.9x during FY23, from 13.5x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 14.2% during FY23, from 19.6% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 19.7% during FY23, from 19.6% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 10.4% during FY23, from 13.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.1	0.9
Debtors’ Days	Days	160	144
Interest coverage	x	13.5	23.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	13.7	10.4
Return on equity	%	19.6	14.2
Return on capital employed	%	19.6	19.7

To see how HINDUSTAN COPPER has performed over the last 5 years, please visit here.

HINDUSTAN COPPER Share Price Performance

Over the last one year, HINDUSTAN COPPER share price has moved up from Rs 115.0 to Rs 154.5, registering a gain of Rs 39.6 or around 34.4%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 22,816.4 (down 0.7%). Over the last one year it has moved up from 19,004.2 to 22,816.4, a gain of 3,812 points (up 20.1%).

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for HINDUSTAN COPPER and quarterly results for HINDUSTAN COPPER)