HINDALCO 2018-19 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 2018-19 Annual Report Analysis
Wed, 7 Aug

HINDALCO has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

HINDALCO Income Statement Analysis

  • Operating income during the year rose 13.3% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 12.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.9% in FY19 as against 12.0% in FY18.
  • Depreciation charges increased by 6.0% and finance costs decreased by 3.4% YoY, respectively.
  • Other income grew by 2.0% YoY.
  • Net profit for the year declined by 9.7% YoY.
  • Net profit margins during the year declined from 5.2% in FY18 to 4.2% in FY19.

HINDALCO Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 1,151,828 1,305,423 13.3%
Other income Rs m 11,046 11,271 2.0%
Total Revenues Rs m 1,162,874 1,316,694 13.2%
Gross profit Rs m 138,204 155,105 12.2%
Depreciation Rs m 45,062 47,770 6.0%
Interest Rs m 39,107 37,780 -3.4%
Profit before tax Rs m 65,080 80,826 24.2%
Tax Rs m 20,742 25,881 24.8%
Profit after tax Rs m 60,829 54,950 -9.7%
Gross profit margin % 12.0 11.9
Effective tax rate % 31.9 32.0
Net profit margin % 5.2 4.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HINDALCO Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 337 billion as compared to Rs 328 billion in FY18, thereby witnessing an increase of 3.0%.
  • Long-term debt stood at Rs 480 billion as compared to Rs 479 billion during FY18, a growth of 0.3%.
  • Current assets rose 8% and stood at Rs 540 billion, while fixed assets rose 3% and stood at Rs 900 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 1,526 billion as against Rs 1,478 billion during FY18, thereby witnessing a growth of 3%.

HINDALCO Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 548,518 575,017 4.8
 
Current Liabilities Rs m 327,607 337,389 3.0
Long-term Debt Rs m 478,743 480,316 0.3
Total Liabilities Rs m 1,478,273 1,526,317 3.3
 
Current assets Rs m 499,633 539,935 8.1
Fixed Assets Rs m 871,514 899,563 3.2
Total Assets Rs m 1,478,273 1,526,317 3.3
* 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 FY19 stood at Rs 120 billion, an improvement of 9.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -57 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -55 billion, an improvement of 67% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 11 billion from the Rs -2 billion net cash flows seen during FY18.

HINDALCO Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 108,977 119,795 9.9%
Cash Flow from Investing Activities Rs m 50,258 -56,517 -
Cash Flow from Financing Activities Rs m -164,124 -54,613 -
Net Cash Flow Rs m -1,815 10,590 -
* 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 24.7, an decline from the EPS of Rs 27.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 177.5, stands at 30.4 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 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 516.8 587.1
TTM Earnings per share Rs 27.3 24.7
Diluted earnings per share Rs 29.5 26.6
Price to Cash Flow x 3.7 3.6
TTM P/E ratio x 32.8 30.4
Price / Book Value ratio x 0.9 0.9
Market Cap Rs m 395,585 366,571
Dividends per share (Unadj.) Rs 1.2 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 1.6x during FY19, from 1.5x during FY18. 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 3.1x during FY19, from 2.7x during FY18. 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 9.6% during FY19, from 11.1% during FY19. 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 declined and down at 11.2% during FY19, from 11.7% during FY18. 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 6.1% during FY19, from 6.8% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 1.5 1.6
Debtors’ Days Days 32 32
Interest coverage x 2.7 3.1
Debt to equity ratio x 0.9 0.8
Return on assets % 6.8 6.1
Return on equity % 11.1 9.6
Return on capital employed % 11.7 11.2
* 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 down from Rs 219.1 to Rs 177.5, registering a loss of Rs 41.6 or around 19.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 8,934.7 (down 2.0%). Over the last one year it has moved down from 13,065.4 to 8,934.7, a loss of 4,131 points (down 31.6%).

Overall, the S&P BSE SENSEX is down 2.3% 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 2018-19 Annual Report Analysis". Click here!

1 Responses to "HINDALCO 2018-19 Annual Report Analysis"

Asmita Gupta

Aug 31, 2020

Please send

Like 
  
Equitymaster requests your view! Post a comment on "HINDALCO 2018-19 Annual Report Analysis". Click here!

Related Views on News

HINDALCO 2019-20 Annual Report Analysis (Annual Result Update)

Nov 23, 2020 | Updated on Nov 23, 2020

Here's an analysis of the annual report of HINDALCO for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of HINDALCO. Also includes updates on the valuation of HINDALCO.

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 2017-18 Annual Report Analysis (Annual Result Update)

Dec 21, 2018 | Updated on Dec 21, 2018

Here's an analysis of the annual report of HINDALCO for 2017-18. 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

Not Infosys or Wipro. India's Next Wealth Creators Could Be Drone Stocks(Profit Hunter)

Nov 25, 2020

India's drones directorate signals the next big defence tech multibaggers.

It's Time to Book Profits(Fast Profits Daily)

Nov 27, 2020

In my first video on Equitymaster, I want to introduce you my proprietary greed and fear index. It's telling us to book some profits in the market.

How the New Margins Will Impact You(Fast Profits Daily)

Nov 25, 2020

The new rules on margins will come into effect from 1st December. Are you ready?

Create Wealth for Yourself in India's Drone Revolution(Profit Hunter)

Nov 27, 2020

The Chinese drone market is 14 times that of India's. Billions may flow into Indian drone companies too. Don't miss out on this wealth creating opportunity.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts 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