HAWKINS COOKERS 2022-23 Annual Report Analysis

Fri, 21 Jul

HAWKINS COOKERS 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.

HAWKINS COOKERS Income Statement Analysis

• Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.5% in FY23 as against 12.5% in FY22.
• Depreciation charges increased by 16.0% and finance costs decreased by 19.7% YoY, respectively.
• Other income declined by 29.0% YoY.
• Net profit for the year grew by 13.0% YoY.
• Net profit margins during the year grew from 8.8% in FY22 to 9.4% in FY23.

HAWKINS COOKERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,580	10,058	5.0%
Other income	Rs m	59	42	-29.0%
Total Revenues	Rs m	9,639	10,100	4.8%
Gross profit	Rs m	1,198	1,353	13.0%
Depreciation	Rs m	67	77	16.0%
Interest	Rs m	61	49	-19.7%
Profit before tax	Rs m	1,129	1,269	12.4%
Tax	Rs m	290	321	10.7%
Profit after tax	Rs m	839	948	13.0%
Gross profit margin	%	12.5	13.5
Effective tax rate	%	25.7	25.3
Net profit margin	%	8.8	9.4

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HAWKINS COOKERS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -0.3%.
• Long-term debt down at Rs 208 million as compared to Rs 344 million during FY22, a fall of 39.6%.
• Current assets rose 9% and stood at Rs 4 billion, while fixed assets rose 31% and stood at Rs 847 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 12%.

HAWKINS COOKERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,132	2,761	29.5
Current Liabilities	Rs m	1,542	1,538	-0.3
Long-term Debt	Rs m	344	208	-39.6
Total Liabilities	Rs m	4,094	4,592	12.2
Current assets	Rs m	3,447	3,746	8.7
Fixed Assets	Rs m	647	847	30.8
Total Assets	Rs m	4,094	4,592	12.2

HAWKINS COOKERS Cash Flow Statement Analysis

• HAWKINS COOKERS's cash flow from operating activities (CFO) during FY23 stood at Rs 923 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -475 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -332 million, an improvement of 35% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 115 million from the Rs -215 million net cash flows seen during FY22.

HAWKINS COOKERS 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	-522	923	-
Cash Flow from Investing Activities	Rs m	820	-475	-
Cash Flow from Financing Activities	Rs m	-513	-332	-
Net Cash Flow	Rs m	-215	115	-

Current Valuations for HAWKINS COOKERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 179.2, an improvement from the EPS of Rs 158.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,685.4, stands at 37.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.8 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 29.7 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	1,811.0	1,901.3
TTM Earnings per share	Rs	158.6	179.2
Diluted earnings per share	Rs	158.6	179.2
Price to Cash Flow	x	29.6	29.7
TTM P/E ratio	x	31.9	37.3
Price / Book Value ratio	x	14.4	11.0
Market Cap	Rs m	30,643	30,418
Dividends per share (Unadj.)	Rs	150.0	100.0

Ratio Analysis for HAWKINS COOKERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 2.2x 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 27.1x during FY23, from 19.6x 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 34.3% during FY23, from 39.3% 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 44.4% during FY23, from 48.1% 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 21.7% during FY23, from 22.0% 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	2.2	2.4
Debtors’ Days	Days	201	172
Interest coverage	x	19.6	27.1
Debt to equity ratio	x	0.2	0.1
Return on assets	%	22.0	21.7
Return on equity	%	39.3	34.3
Return on capital employed	%	48.1	44.4

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 5,343.0 to Rs 6,685.4, registering a gain of Rs 1,342.5 or around 25.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 42,256.6 (down 1.1%). Over the last one year it has moved up from 39,119.4 to 42,256.6, a gain of 3,137 points (up 8.0%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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