HERCULES HOISTS 2017-18 Annual Report Analysis

Sat, 31 Mar

HERCULES HOISTS 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.

HERCULES HOISTS Income Statement Analysis

• Operating income during the year rose 13.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 277.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.2% in FY18 as against 1.6% in FY17.
• Depreciation charges increased by 12.8% and finance costs decreased by 83.1% YoY, respectively.
• Other income declined by 16.5% YoY.
• Net profit for the year grew by 23.0% YoY.
• Net profit margins during the year grew from 12.3% in FY17 to 13.2% in FY18.

HERCULES HOISTS Income Statement 2017-18

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Net Sales	Rs m	648	739	13.9%
Other income	Rs m	117	98	-16.5%
Total Revenues	Rs m	766	837	9.3%
Gross profit	Rs m	10	38	277.4%
Depreciation	Rs m	26	29	12.8%
Interest	Rs m	2	0	-83.1%
Profit before tax	Rs m	100	107	7.5%
Tax	Rs m	20	9	-54.3%
Profit after tax	Rs m	80	98	23.0%
Gross profit margin	%	1.6	5.2
Effective tax rate	%	20.0	8.5
Net profit margin	%	12.3	13.2

HERCULES HOISTS Balance Sheet Analysis

• The company's current liabilities during FY18 stood at Rs 139 million as compared to Rs 115 million in FY17, thereby witnessing an increase of 21.3%.
• Current assets fell 7% and stood at Rs 966 million, while fixed assets rose 20% and stood at Rs 3 billion in FY18.
• Overall, the total assets and liabilities for FY18 stood at Rs 4 billion as against Rs 4 billion during FY17, thereby witnessing a growth of 12%.

HERCULES HOISTS Balance Sheet as on March 2018

No. of Mths Year Ending		12 Mar-17*	12 Mar-18*	% Change
Networth	Rs m	3,393	3,801	12.0
Current Liabilities	Rs m	115	139	21.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,541	3,969	12.1
Current assets	Rs m	1,036	966	-6.7
Fixed Assets	Rs m	2,506	3,002	19.8
Total Assets	Rs m	3,541	3,969	12.1

HERCULES HOISTS Cash Flow Statement Analysis

• HERCULES HOISTS's cash flow from operating activities (CFO) during FY18 stood at Rs 151 million, an improvement of 24.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY18 stood at Rs -114 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY18 stood at Rs -39 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY18 stood at Rs -1 million from the Rs -1 million net cash flows seen during FY17.

HERCULES HOISTS 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	122	151	24.1%
Cash Flow from Investing Activities	Rs m	10	-114	-
Cash Flow from Financing Activities	Rs m	-133	-39	-
Net Cash Flow	Rs m	-1	-1	-

Current Valuations for HERCULES HOISTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 104.7, stands at 34.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 36.0 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	20.3	23.1
TTM Earnings per share	Rs	2.5	3.1
Diluted earnings per share	Rs	2.5	3.1
Price to Cash Flow	x	46.3	36.0
TTM P/E ratio	x	81.4	34.2
Price / Book Value ratio	x	1.5	1.2
Market Cap	Rs m	5,248	4,573
Dividends per share (Unadj.)	Rs	1.0	1.3

Ratio Analysis for HERCULES HOISTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 7.0x during FY18, from 9.0x 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 improved and stood at 282.5x during FY18, from 45.2x 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 improved and stood at 2.6% during FY18, from 2.3% 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 2.8% during FY18, from 3.0% 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 improved and stood at 2.5% during FY18, from 2.3% 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	9.0	7.0
Debtors’ Days	Days	1,270	931
Interest coverage	x	45.2	282.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.3	2.5
Return on equity	%	2.3	2.6
Return on capital employed	%	3.0	2.8

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

HERCULES HOISTS Share Price Performance

Over the last one year, HERCULES HOISTS share price has moved down from Rs 152.6 to Rs 104.7, registering a loss of Rs 48.0 or around 31.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,476.7 (down 0.1%). Over the last one year it has moved up from 16,446.0 to 18,476.7, a gain of 2,031 points (up 12.3%).

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

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

Read: Latest Annual Report Analysis of HERCULES HOISTS