HAVELLS INDIA 2021-22 Annual Report Analysis

Tue, 14 Jun

HAVELLS INDIA 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.

HAVELLS INDIA Income Statement Analysis

• Operating income during the year rose 33.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.7% in FY22 as against 15.2% in FY21.
• Depreciation charges increased by 4.8% and finance costs decreased by 25.7% YoY, respectively.
• Other income declined by 14.4% YoY.
• Net profit for the year grew by 14.6% YoY.
• Net profit margins during the year declined from 10.0% in FY21 to 8.6% in FY22.

HAVELLS INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	104,573	139,385	33.3%
Other income	Rs m	1,874	1,604	-14.4%
Total Revenues	Rs m	106,447	140,989	32.5%
Gross profit	Rs m	15,892	17,739	11.6%
Depreciation	Rs m	2,489	2,609	4.8%
Interest	Rs m	901	669	-25.7%
Profit before tax	Rs m	14,376	16,066	11.8%
Tax	Rs m	3,932	4,101	4.3%
Profit after tax	Rs m	10,443	11,965	14.6%
Gross profit margin	%	15.2	12.7
Effective tax rate	%	27.4	25.5
Net profit margin	%	10.0	8.6

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HAVELLS INDIA Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 40 billion as compared to Rs 31 billion in FY21, thereby witnessing an increase of 30.3%.
• Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY21, a fall of 30.8%.
• Current assets rose 24% and stood at Rs 70 billion, while fixed assets rose 11% and stood at Rs 39 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 109 billion as against Rs 91 billion during FY21, thereby witnessing a growth of 19%.

HAVELLS INDIA Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	51,757	60,024	16.0
Current Liabilities	Rs m	30,542	39,800	30.3
Long-term Debt	Rs m	3,937	2,726	-30.8
Total Liabilities	Rs m	91,291	108,701	19.1
Current assets	Rs m	55,967	69,527	24.2
Fixed Assets	Rs m	35,324	39,174	10.9
Total Assets	Rs m	91,291	108,701	19.1

HAVELLS INDIA Cash Flow Statement Analysis

• HAVELLS INDIA's cash flow from operating activities (CFO) during FY22 stood at Rs 17 billion, an improvement of 161.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -8 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 4 billion from the Rs 869 million net cash flows seen during FY21.

HAVELLS INDIA 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	6,603	17,278	161.7%
Cash Flow from Investing Activities	Rs m	-7,629	-7,586	-
Cash Flow from Financing Activities	Rs m	1,898	-5,472	-
Net Cash Flow	Rs m	869	4,212	384.6%

Current Valuations for HAVELLS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.1, an improvement from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,123.4, stands at 58.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.7 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 52.9 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	167.0	222.6
TTM Earnings per share	Rs	16.7	19.1
Diluted earnings per share	Rs	16.7	19.1
Price to Cash Flow	x	50.9	52.9
TTM P/E ratio	x	63.0	58.8
Price / Book Value ratio	x	10.2	12.8
Market Cap	Rs m	527,416	770,995
Dividends per share (Unadj.)	Rs	6.5	7.5

Ratio Analysis for HAVELLS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY22, from 1.8x 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 25.0x 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 declined and down at 19.9% during FY22, from 20.2% 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 26.7% during FY22, from 27.4% 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 declined and down at 11.6% during FY22, from 12.4% 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	1.8	1.7
Debtors’ Days	Days	2	2
Interest coverage	x	17.0	25.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	12.4	11.6
Return on equity	%	20.2	19.9
Return on capital employed	%	27.4	26.7

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

HAVELLS INDIA Share Price Performance

Over the last one year, HAVELLS INDIA share price has moved up from Rs 1,019.6 to Rs 1,123.4, registering a gain of Rs 103.8 or around 10.2%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 35,573.6 (up 0.0%). Over the last one year it has moved up from 35,517.5 to 35,573.6, a gain of 56 points (up 0.2%).

Overall, the S&P BSE SENSEX is up 1.1% over the year.

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

Read: Latest Annual Report Analysis of HAVELLS INDIA