HATHWAY CABLE 2022-23 Annual Report Analysis

Mon, 14 Aug

HATHWAY CABLE 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.

HATHWAY CABLE Income Statement Analysis

• Operating income during the year rose 3.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 18.5% in FY23 as against 24.8% in FY22.
• Depreciation charges decreased by 2.9% and finance costs decreased by 23.9% YoY, respectively.
• Other income grew by 32.2% YoY.
• Net profit for the year declined by 49.9% YoY.
• Net profit margins during the year declined from 7.3% in FY22 to 3.5% in FY23.

HATHWAY CABLE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	17,930	18,584	3.6%
Other income	Rs m	792	1,046	32.2%
Total Revenues	Rs m	18,722	19,631	4.9%
Gross profit	Rs m	4,451	3,432	-22.9%
Depreciation	Rs m	3,677	3,571	-2.9%
Interest	Rs m	5	4	-23.9%
Profit before tax	Rs m	1,561	904	-42.1%
Tax	Rs m	258	251	-2.8%
Profit after tax	Rs m	1,304	654	-49.9%
Gross profit margin	%	24.8	18.5
Effective tax rate	%	16.5	27.7
Net profit margin	%	7.3	3.5

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HATHWAY CABLE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 6 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 31.6%.
• Long-term debt stood at Rs 34 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 69% and stood at Rs 19 billion, while fixed assets fell 17% and stood at Rs 26 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 45 billion as against Rs 42 billion during FY22, thereby witnessing a growth of 6%.

HATHWAY CABLE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	41,251	41,831	1.4
Current Liabilities	Rs m	4,715	6,206	31.6
Long-term Debt	Rs m	0	34	0.0
Total Liabilities	Rs m	42,331	44,678	5.5
Current assets	Rs m	10,996	18,629	69.4
Fixed Assets	Rs m	31,335	26,049	-16.9
Total Assets	Rs m	42,331	44,678	5.5

HATHWAY CABLE Cash Flow Statement Analysis

• HATHWAY CABLE's cash flow from operating activities (CFO) during FY23 stood at Rs 5 billion, an improvement of 36.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs -496 million net cash flows seen during FY22.

HATHWAY CABLE 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	3,328	4,533	36.2%
Cash Flow from Investing Activities	Rs m	-3,823	-3,032	-
Cash Flow from Financing Activities	Rs m	-1	0	-
Net Cash Flow	Rs m	-496	1,502	-

Current Valuations for HATHWAY CABLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16.4, stands at 94.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	10.1	10.5
TTM Earnings per share	Rs	0.7	0.4
Diluted earnings per share	Rs	0.7	0.4
Price to Cash Flow	x	6.1	7.1
TTM P/E ratio	x	62.4	94.6
Price / Book Value ratio	x	1.0	0.7
Market Cap	Rs m	40,801	30,189
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HATHWAY CABLE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY23, from 2.3x 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 deteriorated and stood at 259.4x during FY23, from 340.4x 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 1.6% during FY23, from 3.2% 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 2.2% during FY23, from 3.8% 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 1.5% during FY23, from 3.1% 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	2.3	3.0
Debtors’ Days	Days	1	3
Interest coverage	x	340.4	259.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.1	1.5
Return on equity	%	3.2	1.6
Return on capital employed	%	3.8	2.2

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 16.9 to Rs 16.4, registering a loss of Rs 0.5 or around 2.8%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,851.8 (down 0.3%). Over the last one year it has moved up from 13,819.7 to 13,851.8, a gain of 32 points (up 0.2%).

Overall, the S&P BSE SENSEX is up 10.5% over the year.

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