HINDUSTAN AERO. 2021-22 Annual Report Analysis

Wed, 3 Aug

HINDUSTAN AERO. has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HINDUSTAN AERO. Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.0% in FY22 as against 23.6% in FY21.
• Depreciation charges decreased by 5.8% and finance costs decreased by 75.6% YoY, respectively.
• Other income grew by 175.3% YoY.
• Net profit for the year grew by 57.3% YoY.
• Net profit margins during the year grew from 14.2% in FY21 to 20.7% in FY22.

HINDUSTAN AERO. Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	227,545	246,202	8.2%
Other income	Rs m	3,582	9,863	175.3%
Total Revenues	Rs m	231,128	256,066	10.8%
Gross profit	Rs m	53,591	54,198	1.1%
Depreciation	Rs m	11,783	11,099	-5.8%
Interest	Rs m	2,669	651	-75.6%
Profit before tax	Rs m	42,722	52,312	22.4%
Tax	Rs m	10,379	1,447	-86.1%
Profit after tax	Rs m	32,343	50,865	57.3%
Gross profit margin	%	23.6	22.0
Effective tax rate	%	24.3	2.8
Net profit margin	%	14.2	20.7

Must See: Grab This Emerging Opportunity Before it Slips Away

HINDUSTAN AERO. Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 250 billion as compared to Rs 255 billion in FY21, thereby witnessing an decrease of -1.9%.
• Current assets rose 12% and stood at Rs 450 billion, while fixed assets rose 9% and stood at Rs 127 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 578 billion as against Rs 519 billion during FY21, thereby witnessing a growth of 11%.

HINDUSTAN AERO. Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	154,123	192,640	25.0
Current Liabilities	Rs m	255,107	250,199	-1.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	518,936	577,554	11.3
Current assets	Rs m	401,714	450,071	12.0
Fixed Assets	Rs m	117,222	127,483	8.8
Total Assets	Rs m	518,936	577,554	11.3

HINDUSTAN AERO. Cash Flow Statement Analysis

• HINDUSTAN AERO.'s cash flow from operating activities (CFO) during FY22 stood at Rs 100 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -128 billion, an improvement of 904.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -13 billion, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -41 billion from the Rs 69 billion net cash flows seen during FY21.

HINDUSTAN AERO. Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	152,627	100,401	-34.2%
Cash Flow from Investing Activities	Rs m	-12,710	-127,634	-
Cash Flow from Financing Activities	Rs m	-71,249	-13,491	-
Net Cash Flow	Rs m	68,668	-40,723	-

Current Valuations for HINDUSTAN AERO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 152.1, an improvement from the EPS of Rs 96.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,016.1, stands at 13.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	680.5	736.3
TTM Earnings per share	Rs	96.7	152.1
Diluted earnings per share	Rs	96.7	152.1
Price to Cash Flow	x	7.5	6.7
TTM P/E ratio	x	10.3	13.3
Price / Book Value ratio	x	2.1	2.2
Market Cap	Rs m	319,934	416,889
Dividends per share (Unadj.)	Rs	30.0	50.0

Ratio Analysis for HINDUSTAN AERO.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY22, from 1.6x during FY21. 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 81.3x during FY22, from 17.0x during FY21. 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 26.4% during FY22, from 21.0% during FY22. 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 27.5% during FY22, from 29.5% during FY21. 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 8.9% during FY22, from 6.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.6	1.8
Debtors’ Days	Days	904	688
Interest coverage	x	17.0	81.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.7	8.9
Return on equity	%	21.0	26.4
Return on capital employed	%	29.5	27.5

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

HINDUSTAN AERO. Share Price Performance

Over the last one year, HINDUSTAN AERO. share price has moved up from Rs 1,100.6 to Rs 2,016.1, registering a gain of Rs 915.5 or around 83.2%.

Overall, the S&P BSE SENSEX is up 9.8% over the year.

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

Read: Latest Annual Report Analysis of HINDUSTAN AERO.