HAWKINS COOKERS 2020-21 Annual Report Analysis

Wed, 31 Mar

HAWKINS COOKERS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HAWKINS COOKERS Income Statement Analysis

• Operating income during the year rose 14.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.4% in FY21 as against 15.4% in FY20.
• Depreciation charges increased by 13.2% and finance costs increased by 18.6% YoY, respectively.
• Other income grew by 130.5% YoY.
• Net profit for the year grew by 11.2% YoY.
• Net profit margins during the year declined from 10.8% in FY20 to 10.5% in FY21.

HAWKINS COOKERS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	6,739	7,685	14.0%
Other income	Rs m	32	73	130.5%
Total Revenues	Rs m	6,770	7,758	14.6%
Gross profit	Rs m	1,039	1,108	6.7%
Depreciation	Rs m	47	53	13.2%
Interest	Rs m	40	47	18.6%
Profit before tax	Rs m	984	1,081	9.9%
Tax	Rs m	259	274	6.0%
Profit after tax	Rs m	725	806	11.2%
Gross profit margin	%	15.4	14.4
Effective tax rate	%	26.3	25.4
Net profit margin	%	10.8	10.5

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HAWKINS COOKERS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 2 billion as compared to Rs 1 billion in FY20, thereby witnessing an increase of 31.2%.
• Long-term debt stood at Rs 231 million as compared to Rs 131 million during FY20, a growth of 75.7%.
• Current assets rose 30% and stood at Rs 3 billion, while fixed assets rose 46% and stood at Rs 586 million in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 32%.

HAWKINS COOKERS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	1,397	1,776	27.2
Current Liabilities	Rs m	1,416	1,857	31.2
Long-term Debt	Rs m	131	231	75.7
Total Liabilities	Rs m	2,970	3,912	31.7
Current assets	Rs m	2,567	3,326	29.5
Fixed Assets	Rs m	403	586	45.5
Total Assets	Rs m	2,970	3,912	31.7

HAWKINS COOKERS Cash Flow Statement Analysis

• HAWKINS COOKERS's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion, an improvement of 187.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 505.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -402 million, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 294 million from the Rs -62 million net cash flows seen during FY20.

HAWKINS COOKERS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	657	1,889	187.7%
Cash Flow from Investing Activities	Rs m	-197	-1,194	-
Cash Flow from Financing Activities	Rs m	-522	-402	-
Net Cash Flow	Rs m	-62	294	-

Current Valuations for HAWKINS COOKERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 152.4, an improvement from the EPS of Rs 137.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,345.2, stands at 35.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.9 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 30.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	1,273.9	1,452.7
TTM Earnings per share	Rs	137.0	152.4
Diluted earnings per share	Rs	137.1	152.5
Price to Cash Flow	x	26.6	30.7
TTM P/E ratio	x	28.3	35.1
Price / Book Value ratio	x	15.4	14.9
Market Cap	Rs m	21,537	26,378
Dividends per share (Unadj.)	Rs	0.0	80.0

Ratio Analysis for HAWKINS COOKERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY21, from 1.8x during FY20. 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 deteriorated and stood at 23.8x during FY21, from 25.6x during FY20. 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 45.4% during FY21, from 51.9% during FY21. 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 56.2% during FY21, from 67.0% during FY20. 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 21.8% during FY21, from 25.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.8	1.8
Debtors’ Days	Days	272	190
Interest coverage	x	25.6	23.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	25.7	21.8
Return on equity	%	51.9	45.4
Return on capital employed	%	67.0	56.2

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 3,883.7 to Rs 5,345.2, registering a gain of Rs 1,461.6 or around 37.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 32,825.9 (up 0.8%). Over the last one year it has moved up from 19,363.0 to 32,825.9, a gain of 13,463 points (up 69.5%).

Overall, the S&P BSE SENSEX is up 74.1% 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