HINDALCO 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HINDALCO 2017-18 Annual Report Analysis
Fri, 21 Dec

HINDALCO has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HINDALCO Income Statement Analysis

  • Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 11.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY18 as against 12.4% in FY17.
  • Depreciation charges increased by 1.1% and finance costs decreased by 31.9% YoY, respectively.
  • Other income declined by 0.6% YoY.
  • Net profit for the year grew by 223.2% YoY.
  • Net profit margins during the year grew from 1.9% in FY17 to 5.2% in FY18.

HINDALCO Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 1,001,838 1,151,717 15.0%
Other income Rs m 11,110 11,046 -0.6%
Total Revenues Rs m 1,012,948 1,162,763 14.8%
Gross profit Rs m 124,364 138,204 11.1%
Depreciation Rs m 44,572 45,062 1.1%
Interest Rs m 57,424 39,107 -31.9%
Profit before tax Rs m 33,477 65,080 94.4%
Tax Rs m 14,326 20,742 44.8%
Profit after tax Rs m 18,823 60,829 223.2%
Gross profit margin % 12.4 12.0
Effective tax rate % 42.8 31.9
Net profit margin % 1.9 5.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HINDALCO Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 323 billion as compared to Rs 382 billion in FY17, thereby witnessing an decrease of -15.3%.
  • Long-term debt down at Rs 479 billion as compared to Rs 519 billion during FY17, a fall of 7.7%.
  • Current assets fell 0% and stood at Rs 500 billion, while fixed assets rose 1% and stood at Rs 872 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,477 billion as against Rs 1,470 billion during FY17, thereby witnessing a growth of 0%.

HINDALCO Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 460,588 548,518 19.1
 
Current Liabilities Rs m 381,635 323,165 -15.3
Long-term Debt Rs m 518,553 478,743 -7.7
Total Liabilities Rs m 1,469,942 1,476,571 0.5
 
Current assets Rs m 501,140 499,633 -0.3
Fixed Assets Rs m 865,007 871,514 0.8
Total Assets Rs m 1,469,942 1,476,571 0.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HINDALCO Cash Flow Statement Analysis

  • HINDALCO's cash flow from operating activities (CFO) during FY18 stood at Rs 109 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 50 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -164 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -2 billion from the Rs 40 billion net cash flows seen during FY17.

HINDALCO Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 126,875 108,877 -14.2%
Cash Flow from Investing Activities Rs m -27,885 50,258 -
Cash Flow from Financing Activities Rs m -55,523 -164,124 -
Net Cash Flow Rs m 39,604 -1,815 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HINDALCO

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.1, an improvement from the EPS of Rs 8.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 226.8, stands at 31.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 446.5 512.9
TTM Earnings per share Rs 8.4 27.1
Diluted earnings per share Rs 9.1 29.5
Price to Cash Flow x 8.0 4.4
TTM P/E ratio x 34.5 31.8
Price / Book Value ratio x 0.7 0.9
Market Cap Rs m 508,782 468,281
Dividends per share (Unadj.) Rs 1.1 1.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HINDALCO

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY18, from 1.3x during FY17. 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 deteriorated and stood at 2.7x during FY18, from 1.6x during FY17. 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 improved and stood at 11.1% during FY18, from 4.1% during FY18. 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 11.7% during FY18, from 9.3% during FY17. 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 improved and stood at 6.8% during FY18, from 5.2% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.3 1.5
Debtors’ Days Days 30 32
Interest coverage x 1.6 2.7
Debt to equity ratio x 1.1 0.9
Return on assets % 5.2 6.8
Return on equity % 4.1 11.1
Return on capital employed % 9.3 11.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HINDALCO Share Price Performance

Over the last one year, HINDALCO share price has moved up from Rs 263.1 to Rs 226.8, registering a loss of Rs 36.3 or around 13.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,997.6 (up 0.9%). Over the last one year it has moved down from 14,536.6 to 11,997.6, a loss of 2,539 points (down 17.5%).

Overall, the S&P BSE SENSEX is up 7.8% over the year.

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

Equitymaster requests your view! Post a comment on "HINDALCO 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

HINDALCO Announces Quarterly Results (3QFY20); Net Profit Down 22.0% (Quarterly Result Update)

Feb 17, 2020 | Updated on Feb 17, 2020

For the quarter ended December 2019, HINDALCO has posted a net profit of Rs 2 bn (down 22.0% YoY). Sales on the other hand came in at Rs 102 bn (down 14.3% YoY). Read on for a complete analysis of HINDALCO's quarterly results.

HINDALCO Announces Quarterly Results (1QFY20); Net Profit Down 94.5% (Quarterly Result Update)

Aug 13, 2019 | Updated on Aug 13, 2019

For the quarter ended June 2019, HINDALCO has posted a net profit of Rs 226 m (down 94.5% YoY). Sales on the other hand came in at Rs 101 bn (down 5.1% YoY). Read on for a complete analysis of HINDALCO's quarterly results.

HINDALCO 2018-19 Annual Report Analysis (Annual Result Update)

Aug 7, 2019 | Updated on Aug 7, 2019

Here's an analysis of the annual report of HINDALCO for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of HINDALCO. Also includes updates on the valuation of HINDALCO.

More Views on News

Most Popular

The Next Few Days Are Crucial for Smallcap Investors - And 3 Must-Buy Stocks(Profit Hunter)

Feb 19, 2020

While I have been writing about the rebound in smallcaps for quite some time now... I have shied from the question - When exactly is the smallcap rebound happening. Well, the answer is now.

This Smallcap Stock Could be the Next Titan (Up 1,400% in 10 Years)(Profit Hunter)

Feb 11, 2020

A blueprint to latch on to the next 'Crorepati' stock - and an event I hope you won't miss on any account.

Here's Why I Recommended 15 Stocks in One Day Flat(Views On News)

Feb 14, 2020

This proven strategy can give big returns in quick time.

The Top 8 Trading Mistakes You Should Avoid(Fast Profits Daily)

Feb 18, 2020

Avoid these mistakes and your trading will turn much more profitable.

These Rebirth of India Stocks Are Raring to Compete with Tesla(The 5 Minute Wrapup)

Feb 17, 2020

There are Indian stocks which can soar like Tesla in the long-run.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get our special report, Secret to Increasing Your Trading Profits Today Now!
We will never sell or rent your email id.
Please read our Terms

TRACK HINDALCO

  • Track your investment in HINDALCO with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

COMPARE HINDALCO WITH

MARKET STATS