HEG 2018-19 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

HEG 2018-19 Annual Report Analysis
Wed, 31 Jul

HEG has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

HEG Income Statement Analysis

  • Operating income during the year rose 139.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 170.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 70.7% in FY19 as against 62.6% in FY18.
  • Depreciation charges decreased by 0.2% and finance costs decreased by 68.1% YoY, respectively.
  • Other income grew by 782.7% YoY.
  • Net profit for the year grew by 175.2% YoY.
  • Net profit margins during the year grew from 39.8% in FY18 to 45.2% in FY19.

HEG Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 27,501 65,928 139.7%
Other income Rs m 124 1,092 782.7%
Total Revenues Rs m 27,624 67,020 142.6%
Gross profit Rs m 17,213 46,583 170.6%
Depreciation Rs m 726 724 -0.2%
Interest Rs m 564 180 -68.1%
Profit before tax Rs m 16,047 46,771 191.5%
Tax Rs m 5,234 16,266 210.8%
Profit after tax Rs m 10,994 30,262 175.2%
Gross profit margin % 62.6 70.7
Effective tax rate % 32.6 34.8
Net profit margin % 39.8 45.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HEG Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 12 billion as compared to Rs 7 billion in FY18, thereby witnessing an increase of 73.5%.
  • Current assets rose 113% and stood at Rs 34 billion, while fixed assets fell 3% and stood at Rs 8 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 51 billion as against Rs 27 billion during FY18, thereby witnessing a growth of 88%.

HEG Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 19,075 37,937 98.9
 
Current Liabilities Rs m 7,019 12,179 73.5
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 27,391 51,444 87.8
 
Current assets Rs m 16,149 34,355 112.7
Fixed Assets Rs m 8,346 8,066 -3.4
Total Assets Rs m 27,391 51,444 87.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HEG Cash Flow Statement Analysis

  • HEG's cash flow from operating activities (CFO) during FY19 stood at Rs 15 billion, an improvement of 146.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -7 billion, an improvement of 7,020.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -8 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 240 million from the Rs -31 million net cash flows seen during FY18.

HEG Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 5,941 14,654 146.7%
Cash Flow from Investing Activities Rs m -92 -6,530 -
Cash Flow from Financing Activities Rs m -5,880 -7,885 -
Net Cash Flow Rs m -31 240 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HEG

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 784.2, an improvement from the EPS of Rs 275.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 981.1, stands at 1.4 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 688.2 1,708.4
TTM Earnings per share Rs 275.1 784.2
Diluted earnings per share Rs 248.1 682.8
Price to Cash Flow x 3.4 1.4
TTM P/E ratio x 1.3 1.4
Price / Book Value ratio x 3.9 3.5
Market Cap Rs m 39,205 43,482
Dividends per share (Unadj.) Rs 50.0 80.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HEG

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 2.8x during FY19, from 2.3x during FY18. 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 261.3x during FY19, from 29.4x during FY18. 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 improved and stood at 79.8% during FY19, from 57.6% during FY19. 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 improved and stood at 123.1% during FY19, from 88.0% during FY18. 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 improved and stood at 59.2% during FY19, from 42.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 2.3 2.8
Debtors’ Days Days 129 66
Interest coverage x 29.4 261.3
Debt to equity ratio x 0.0 0.0
Return on assets % 42.2 59.2
Return on equity % 57.6 79.8
Return on capital employed % 88.0 123.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HEG Share Price Performance

Over the last one year, HEG share price has moved down from Rs 4,306.1 to Rs 981.1, registering a loss of Rs 3,325.0 or around 77.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 17,459.1 (up 0.2%). Over the last one year it has moved down from 18,295.6 to 17,459.1, a loss of 837 points (down 4.6%).

Overall, the S&P BSE SENSEX is down 0.4% over the year.

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

Equitymaster requests your view! Post a comment on "HEG 2018-19 Annual Report Analysis". Click here!

  

Related Views on News

HEG Announces Quarterly Results (1QFY20); Net Profit Down 69.6% (Quarterly Result Update)

Aug 21, 2019 | Updated on Aug 21, 2019

For the quarter ended June 2019, HEG has posted a net profit of Rs 2 bn (down 69.6% YoY). Sales on the other hand came in at Rs 8 bn (down 48.6% YoY). Read on for a complete analysis of HEG's quarterly results.

HEG Announces Quarterly Results (4QFY19); Net Profit Down 17.3% (Quarterly Result Update)

May 22, 2019 | Updated on May 22, 2019

For the quarter ended March 2019, HEG has posted a net profit of Rs 5 bn (down 17.3% YoY). Sales on the other hand came in at Rs 13 bn (up 4.2% YoY). Read on for a complete analysis of HEG's quarterly results.

Garden Reach Shipbuilders and Engineers Ltd: Is This PSU Shipbuilder Worth Betting On? (IPO)

Sep 24, 2018

Should you apply for the IPO of Garden Reach Shipbuilders and Engineers Ltd?

More Views on News

Most Popular

These 5 Smallcaps Deserve a Place in Your Coffee Can Portfolio(Profit Hunter)

Jul 28, 2020

When it comes to quality stocks, doing less is more.

Before You Buy Your First Electric Vehicle Consider Buying this Stock(Profit Hunter)

Jul 29, 2020

As competition intensifies in the electric vehicle space, only few will create huge wealth over the years.

Large Opportunities Are Coming Our Way

Aug 5, 2020

Kenneth Andrade tells us why stocks will bounce back strongly and what he's bullish on.

How to Buy Stocks at 50% Off(Fast Profits Daily)

Aug 7, 2020

In this video I'll show you how to enter into a long trade at the right price.

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

TRACK HEG

HEG - SINTEX INDUSTRIES COMPARISON

COMPARE HEG WITH

MARKET STATS