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HDIL 2017-18 Annual Report Analysis
Sat, 31 Mar

HDIL has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HDIL Income Statement Analysis

  • Operating income during the year fell 46.4% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 34.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 103.9% in FY18 as against 84.7% in FY17.
  • Depreciation charges decreased by 8.9% and finance costs decreased by 18.5% YoY, respectively.
  • Other income declined by 59.8% YoY.
  • Net profit for the year declined by 46.5% YoY.
  • Net profit margins during the year declined from 24.7% in FY17 to 24.7% in FY18.

HDIL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 7,238 3,878 -46.4%
Other income Rs m 345 139 -59.8%
Total Revenues Rs m 7,583 4,016 -47.0%
Gross profit Rs m 6,131 4,027 -34.3%
Depreciation Rs m 75 68 -8.9%
Interest Rs m 4,284 3,493 -18.5%
Profit before tax Rs m 2,117 604 -71.4%
Tax Rs m 328 -352 -207.4%
Profit after tax Rs m 1,789 957 -46.5%
Gross profit margin % 84.7 103.9
Effective tax rate % 15.5 -58.3
Net profit margin % 24.7 24.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

HDIL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 64 billion as compared to Rs 54 billion in FY17, thereby witnessing an increase of 18.2%.
  • Long-term debt down at Rs 7 billion as compared to Rs 16 billion during FY17, a fall of 54.5%.
  • Current assets rose 1% and stood at Rs 185 billion, while fixed assets rose 9% and stood at Rs 4 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 188 billion as against Rs 186 billion during FY17, thereby witnessing a growth of 1%.

HDIL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 114,760 115,726 0.8
 
Current Liabilities Rs m 54,494 64,402 18.2
Long-term Debt Rs m 16,251 7,395 -54.5
Total Liabilities Rs m 185,950 188,340 1.3
 
Current assets Rs m 182,517 184,599 1.1
Fixed Assets Rs m 3,434 3,742 9.0
Total Assets Rs m 185,950 188,340 1.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HDIL Cash Flow Statement Analysis

  • HDIL's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 176 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -5 billion, an improvement of 34% on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -119 million from the Rs -353 million net cash flows seen during FY17.

HDIL Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 6,158 4,235 -31.2%
Cash Flow from Investing Activities Rs m 367 176 -51.9%
Cash Flow from Financing Activities Rs m -6,878 -4,530 -
Net Cash Flow Rs m -353 -119 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HDIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an decline from the EPS of Rs 4.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 38.7, stands at 19.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.2 times, while the price to sales ratio stands at 4.3 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-17* 12 Mar-18*
Sales per share (Unadj.) Rs 16.7 8.9
TTM Earnings per share Rs 4.1 2.2
Diluted earnings per share Rs 3.8 2.0
Price to Cash Flow x 20.8 29.7
TTM P/E ratio x 25.1 19.1
Price / Book Value ratio x 0.3 0.3
Market Cap Rs m 34,959 30,445
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HDIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY18, from 3.3x during FY17. 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 1.2x during FY18, from 1.5x during FY17. 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 0.8% during FY18, from 1.6% during FY18. 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 3.3% during FY18, from 4.9% during FY17. 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 2.4% during FY18, from 3.3% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 3.3 2.9
Debtors’ Days Days 1,547 4,028
Interest coverage x 1.5 1.2
Debt to equity ratio x 0.1 0.1
Return on assets % 3.3 2.4
Return on equity % 1.6 0.8
Return on capital employed % 4.9 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HDIL Share Price Performance

Over the last one year, HDIL share price has moved down from Rs 81.9 to Rs 38.7, registering a loss of Rs 43.2 or around 52.8%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 2,229.9 (down 1.1%). Over the last one year it has moved up from 1,600.0 to 2,229.9, a gain of 630 points (up 39.4%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of HDIL?

HDIL currently trades at Rs 4.6 per share. You can check out the latest share price performance of HDIL here...

What was the revenue of HDIL in FY18? How does it compare to earlier years?

The revenues of HDIL stood at Rs 4,016 m in FY18, which was down -47.0% compared to Rs 7,583 m reported in FY17.

HDIL's revenue has fallen from Rs 9,536 m in FY14 to Rs 4,016 m in FY18.

Over the past 5 years, the revenue of HDIL has grown at a CAGR of -19.4%.

What was the net profit of HDIL in FY18? How does it compare to earlier years?

The net profit of HDIL stood at Rs 957 m in FY18, which was down -46.5% compared to Rs 1,789 m reported in FY17.

This compares to a net profit of Rs 3,294 m in FY16 and a net profit of Rs 2,186 m in FY15.

Over the past 5 years, HDIL net profit has grown at a CAGR of -14.3%.

What does the cash flow statement of HDIL 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 HDIL reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 4,235 m as compared to Rs 6,158 m in FY17.
  • Cash flow from investments decreased in FY18 and stood at Rs 176 m as compared to Rs 367 m in FY17.
  • Cash flow from financial activity increased in FY18 and stood at Rs -4,530 m as compared to Rs -6,878 m in FY17.

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

(Rs m)FY14FY15FY16FY17FY18
From Operations11,6617,0836,9846,1584,235
From Investments780867179367176
From Financial Activity-12,147-8,295-7,773-6,878-4,530
Net Cashflow294-376-609-353-119

What does the Key Ratio analysis of HDIL 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 HDIL reveals:

  • Operating profit margins witnessed a fall and down at 103.9% in FY18 as against 84.7% in FY17.
  • Net profit margins declined from 24.7% in FY17 to 24.7% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.1 as compared to 0.1 in FY17.

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

 FY14FY15FY16FY17FY18
Operating Profit Margin (%)102.578.966.384.7103.9
Net Profit Margin (%)20.421.428.224.724.7
Debt to Equity Ratio (x)0.10.10.20.10.1

Equitymaster requests your view! Post a comment on "HDIL 2017-18 Annual Report Analysis". Click here!

2 Responses to "HDIL 2017-18 Annual Report Analysis"

thomas joseph

Aug 27, 2020

More than for public use, appreciate receiving your specific recommendation as to how to handle the 3500 shares held with me. Under which Service this share was recommended by you please ? Thank You.

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thomas joseph

Aug 27, 2020

00971 50 562 7051

Analysis is good, very well done in the usual format. But the company"s predicament is not usual. Some comments - remarks as to what has lead to this unusual situation and what to expect etc would be would have been useful otherwise a reader like me is left to guess. Remember one day this share was bought by me upon your recommendation (possibly in between you people would have posted Sell advise which i did not notice. Appreciate receiving a recommendation as I have 3500 shares (lot money lost). Thank you.

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Equitymaster requests your view! Post a comment on "HDIL 2017-18 Annual Report Analysis". Click here!