HATHWAY CABLE 2021-22 Annual Report Analysis

Wed, 8 Jun

HATHWAY CABLE 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.

HATHWAY CABLE Income Statement Analysis

• Operating income during the year rose 3.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.3% in FY22 as against 26.9% in FY21.
• Depreciation charges decreased by 0.9% and finance costs decreased by 98.8% YoY, respectively.
• Other income declined by 46.3% YoY.
• Net profit for the year declined by 72.5% YoY.
• Net profit margins during the year declined from 10.3% in FY21 to 2.7% in FY22.

HATHWAY CABLE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	17,318	17,930	3.5%
Other income	Rs m	1,475	792	-46.3%
Total Revenues	Rs m	18,793	18,722	-0.4%
Gross profit	Rs m	4,658	3,637	-21.9%
Depreciation	Rs m	3,712	3,677	-0.9%
Interest	Rs m	384	5	-98.8%
Profit before tax	Rs m	2,037	747	-63.3%
Tax	Rs m	254	258	1.7%
Profit after tax	Rs m	1,783	490	-72.5%
Gross profit margin	%	26.9	20.3
Effective tax rate	%	12.5	34.5
Net profit margin	%	10.3	2.7

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HATHWAY CABLE Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 5 billion as compared to Rs 5 billion in FY21, thereby witnessing an decrease of -4.0%.
• Current assets fell 29% and stood at Rs 11 billion, while fixed assets rose 22% and stood at Rs 31 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 42 billion as against Rs 41 billion during FY21, thereby witnessing a growth of 3%.

HATHWAY CABLE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	39,965	41,251	3.2
Current Liabilities	Rs m	4,912	4,715	-4.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	41,068	42,331	3.1
Current assets	Rs m	15,397	10,996	-28.6
Fixed Assets	Rs m	25,671	31,335	22.1
Total Assets	Rs m	41,068	42,331	3.1

HATHWAY CABLE Cash Flow Statement Analysis

• HATHWAY CABLE's cash flow from operating activities (CFO) during FY22 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -1 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -496 million from the Rs -10 billion net cash flows seen during FY21.

HATHWAY CABLE 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	4,673	3,328	-28.8%
Cash Flow from Investing Activities	Rs m	5,417	-3,823	-
Cash Flow from Financing Activities	Rs m	-20,026	-1	-
Net Cash Flow	Rs m	-9,931	-496	-

Current Valuations for HATHWAY CABLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 17.9, stands at 64.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.8 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	9.8	10.1
TTM Earnings per share	Rs	1.0	0.3
Diluted earnings per share	Rs	1.0	0.3
Price to Cash Flow	x	8.3	9.8
TTM P/E ratio	x	25.5	64.5
Price / Book Value ratio	x	1.5	1.0
Market Cap	Rs m	61,794	40,801
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HATHWAY CABLE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY22, from 3.1x 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 163.5x during FY22, from 6.3x 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 1.2% during FY22, from 4.5% 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 1.8% during FY22, from 6.1% 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 1.2% during FY22, from 5.3% 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	3.1	2.3
Debtors’ Days	Days	0	1
Interest coverage	x	6.3	163.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.3	1.2
Return on equity	%	4.5	1.2
Return on capital employed	%	6.1	1.8

To see how HATHWAY CABLE has performed over the last 5 years, please visit here.

HATHWAY CABLE Share Price Performance

Over the last one year, HATHWAY CABLE share price has moved down from Rs 26.2 to Rs 17.9, registering a loss of Rs 8.3 or around 31.7%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,544.2 (up 0.2%). Over the last one year it has moved up from 12,517.4 to 13,544.2, a gain of 1,027 points (up 8.2%).

Overall, the S&P BSE SENSEX is up 5.5% over the year.

(To know more, check out historical annual results for HATHWAY CABLE and quarterly results for HATHWAY CABLE)

Read: Latest Annual Report Analysis of HATHWAY CABLE