HAVELLS INDIA 2022-23 Annual Report Analysis

Tue, 30 May

HAVELLS INDIA 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.

HAVELLS INDIA Income Statement Analysis

• Operating income during the year rose 21.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY23 as against 12.7% in FY22.
• Depreciation charges increased by 13.5% and finance costs decreased by 17.7% YoY, respectively.
• Other income grew by 10.8% YoY.
• Net profit for the year declined by 10.4% YoY.
• Net profit margins during the year declined from 8.6% in FY22 to 6.3% in FY23.

HAVELLS INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	139,385	169,107	21.3%
Other income	Rs m	1,604	1,777	10.8%
Total Revenues	Rs m	140,989	170,884	21.2%
Gross profit	Rs m	17,739	16,206	-8.6%
Depreciation	Rs m	2,609	2,962	13.5%
Interest	Rs m	669	551	-17.7%
Profit before tax	Rs m	16,066	14,471	-9.9%
Tax	Rs m	4,101	3,753	-8.5%
Profit after tax	Rs m	11,965	10,717	-10.4%
Gross profit margin	%	12.7	9.6
Effective tax rate	%	25.5	25.9
Net profit margin	%	8.6	6.3

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HAVELLS INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 42 billion as compared to Rs 40 billion in FY22, thereby witnessing an increase of 4.8%.
• Current assets rose 6% and stood at Rs 74 billion, while fixed assets rose 4% and stood at Rs 41 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 115 billion as against Rs 109 billion during FY22, thereby witnessing a growth of 6%.

HAVELLS INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	60,024	66,232	10.3
Current Liabilities	Rs m	39,800	41,699	4.8
Long-term Debt	Rs m	2,726	0	-100.0
Total Liabilities	Rs m	108,701	114,918	5.7
Current assets	Rs m	69,527	73,900	6.3
Fixed Assets	Rs m	39,167	40,913	4.5
Total Assets	Rs m	108,701	114,918	5.7

HAVELLS INDIA Cash Flow Statement Analysis

• HAVELLS INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 350 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 billion from the Rs 4 billion net cash flows seen during FY22.

HAVELLS INDIA 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	17,280	5,649	-67.3%
Cash Flow from Investing Activities	Rs m	-7,586	350	-
Cash Flow from Financing Activities	Rs m	-5,473	-9,069	-
Net Cash Flow	Rs m	4,212	-3,107	-

Current Valuations for HAVELLS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an decline from the EPS of Rs 19.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,298.1, stands at 75.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.3 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 56.4 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	222.6	269.9
TTM Earnings per share	Rs	19.1	17.1
Diluted earnings per share	Rs	19.1	17.1
Price to Cash Flow	x	49.6	56.4
TTM P/E ratio	x	60.4	75.9
Price / Book Value ratio	x	12.8	11.7
Market Cap	Rs m	770,995	772,032
Dividends per share (Unadj.)	Rs	7.5	7.5

Ratio Analysis for HAVELLS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY23, from 1.7x 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 27.3x during FY23, from 25.0x 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 16.2% during FY23, from 19.9% 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 declined and down at 22.7% during FY23, from 26.7% 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 9.8% during FY23, from 11.6% 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	1.7	1.8
Debtors’ Days	Days	2	2
Interest coverage	x	25.0	27.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	9.8
Return on equity	%	19.9	16.2
Return on capital employed	%	26.7	22.7

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 1,217.8 to Rs 1,298.1, registering a gain of Rs 80.4 or around 6.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 40,854.4 (up 0.4%). Over the last one year it has moved up from 38,295.0 to 40,854.4, a gain of 2,559 points (up 6.7%).

Overall, the S&P BSE SENSEX is up 16.0% over the year.

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