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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of HATHWAY CABLE?

HATHWAY CABLE currently trades at Rs 17.0 per share. You can check out the latest share price performance of HATHWAY CABLE here...

What was the revenue of HATHWAY CABLE in FY22? How does it compare to earlier years?

The revenues of HATHWAY CABLE stood at Rs 18,722 m in FY22, which was down -0.4% compared to Rs 18,793 m reported in FY21.

HATHWAY CABLE's revenue has grown from Rs 15,519 m in FY18 to Rs 18,722 m in FY22.

Over the past 5 years, the revenue of HATHWAY CABLE has grown at a CAGR of 4.8%.

What was the net profit of HATHWAY CABLE in FY22? How does it compare to earlier years?

The net profit of HATHWAY CABLE stood at Rs 490 m in FY22, which was down -72.5% compared to Rs 1,783 m reported in FY21.

This compares to a net profit of Rs 728 m in FY20 and a net loss of Rs -1,943 m in FY19.

Over the past 5 years, HATHWAY CABLE net profit has grown at a CAGR of NaN%.

What does the cash flow statement of HATHWAY CABLE reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of HATHWAY CABLE reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 3,328 m as compared to Rs 4,673 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -3,823 m as compared to Rs 5,417 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -1 m as compared to Rs -20,026 m in FY21.

Here's the cash flow statement of HATHWAY CABLE for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations2,9292,4624,3994,6733,328
From Investments-1,328-32,8957,9255,417-3,823
From Financial Activity-1,65730,976-2,438-20,026-1
Net Cashflow-565449,886-9,931-496

What does the Key Ratio analysis of HATHWAY CABLE reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of HATHWAY CABLE reveals:

  • Operating profit margins witnessed a fall and stood at 20.3% in FY22 as against 26.9% in FY21.
  • Net profit margins declined from 10.3% in FY21 to 2.7% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of HATHWAY CABLE for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)21.1-7.923.726.920.3
Net Profit Margin (%)-9.6-12.54.010.32.7
Debt to Equity Ratio (x)1.10.40.00.00.0

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