HAWKINS COOKERS 2018-19 Annual Report Analysis

Sun, 31 Mar

HAWKINS COOKERS 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.

HAWKINS COOKERS Income Statement Analysis

• Operating income during the year rose 19.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.2% in FY19 as against 12.9% in FY18.
• Depreciation charges increased by 9.8% and finance costs decreased by 4.0% YoY, respectively.
• Other income declined by 62.6% YoY.
• Net profit for the year grew by 11.4% YoY.
• Net profit margins during the year declined from 8.9% in FY18 to 8.3% in FY19.

HAWKINS COOKERS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	5,485	6,528	19.0%
Other income	Rs m	111	41	-62.6%
Total Revenues	Rs m	5,596	6,570	17.4%
Gross profit	Rs m	705	862	22.2%
Depreciation	Rs m	37	40	9.8%
Interest	Rs m	41	40	-4.0%
Profit before tax	Rs m	738	823	11.6%
Tax	Rs m	251	281	11.9%
Profit after tax	Rs m	487	542	11.4%
Gross profit margin	%	12.9	13.2
Effective tax rate	%	34.1	34.2
Net profit margin	%	8.9	8.3

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HAWKINS COOKERS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 1 billion as compared to Rs 1 billion in FY18, thereby witnessing an increase of 4.9%.
• Long-term debt stood at Rs 213 million as compared to Rs 138 million during FY18, a growth of 54.4%.
• Current assets rose 8% and stood at Rs 2 billion, while fixed assets rose 14% and stood at Rs 328 million in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 3 billion as against Rs 2 billion during FY18, thereby witnessing a growth of 9%.

HAWKINS COOKERS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	1,098	1,186	8.0
Current Liabilities	Rs m	1,176	1,233	4.9
Long-term Debt	Rs m	138	213	54.4
Total Liabilities	Rs m	2,441	2,656	8.8
Current assets	Rs m	2,154	2,328	8.1
Fixed Assets	Rs m	287	328	14.2
Total Assets	Rs m	2,441	2,656	8.8

HAWKINS COOKERS Cash Flow Statement Analysis

• HAWKINS COOKERS's cash flow from operating activities (CFO) during FY19 stood at Rs -61 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs 415 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -453 million, an improvement of 14% on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs -99 million from the Rs 41 million net cash flows seen during FY18.

HAWKINS COOKERS 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	692	-61	-
Cash Flow from Investing Activities	Rs m	-126	415	-
Cash Flow from Financing Activities	Rs m	-525	-453	-
Net Cash Flow	Rs m	41	-99	-

Current Valuations for HAWKINS COOKERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 102.5, an improvement from the EPS of Rs 92.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,080.4, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.7 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 28.2 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	1,036.9	1,234.1
TTM Earnings per share	Rs	92.0	102.5
Diluted earnings per share	Rs	92.1	102.5
Price to Cash Flow	x	28.3	28.2
TTM P/E ratio	x	30.4	30.1
Price / Book Value ratio	x	14.2	13.8
Market Cap	Rs m	15,586	16,392
Dividends per share (Unadj.)	Rs	70.0	80.0

Ratio Analysis for HAWKINS COOKERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY19, from 1.8x 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 21.7x during FY19, from 18.8x 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 improved and stood at 45.7% during FY19, from 44.3% 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 61.7% during FY19, from 63.0% 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 improved and stood at 21.9% during FY19, from 21.6% 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	1.8	1.9
Debtors’ Days	Days	314	439
Interest coverage	x	18.8	21.7
Debt to equity ratio	x	0.1	0.2
Return on assets	%	21.6	21.9
Return on equity	%	44.3	45.7
Return on capital employed	%	63.0	61.7

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

HAWKINS COOKERS Share Price Performance

Over the last one year, HAWKINS COOKERS share price has moved up from Rs 2,798.7 to Rs 3,080.4, registering a gain of Rs 281.7 or around 10.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 23,856.7 (up 0.7%). Over the last one year it has moved up from 22,261.9 to 23,856.7, a gain of 1,595 points (up 7.2%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Read: Latest Annual Report Analysis of HAWKINS COOKERS