HERCULES HOISTS 2018-19 Annual Report Analysis

Sun, 31 Mar

HERCULES HOISTS 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.

HERCULES HOISTS Income Statement Analysis

• Operating income during the year rose 38.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 70.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.4% in FY19 as against 5.2% in FY18.
• Depreciation charges increased by 3.2% and finance costs decreased by 100.0% YoY, respectively.
• Other income grew by 28.2% YoY.
• Net profit for the year grew by 30.9% YoY.
• Net profit margins during the year declined from 13.2% in FY18 to 12.5% in FY19.

HERCULES HOISTS Income Statement 2018-19

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Net Sales	Rs m	739	1,022	38.3%
Other income	Rs m	98	126	28.2%
Total Revenues	Rs m	837	1,147	37.1%
Gross profit	Rs m	38	66	70.7%
Depreciation	Rs m	29	30	3.2%
Interest	Rs m	0	0	-100.0%
Profit before tax	Rs m	107	161	50.8%
Tax	Rs m	9	33	264.5%
Profit after tax	Rs m	98	128	30.9%
Gross profit margin	%	5.2	6.4
Effective tax rate	%	8.5	20.6
Net profit margin	%	13.2	12.5

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HERCULES HOISTS Balance Sheet Analysis

• The company's current liabilities during FY19 stood at Rs 163 million as compared to Rs 139 million in FY18, thereby witnessing an increase of 17.3%.
• Current assets rose 16% and stood at Rs 1 billion, while fixed assets rose 13% and stood at Rs 3 billion in FY19.
• Overall, the total assets and liabilities for FY19 stood at Rs 5 billion as against Rs 4 billion during FY18, thereby witnessing a growth of 14%.

HERCULES HOISTS Balance Sheet as on March 2019

No. of Mths Year Ending		12 Mar-18*	12 Mar-19*	% Change
Networth	Rs m	3,801	4,268	12.3
Current Liabilities	Rs m	139	163	17.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,969	4,507	13.6
Current assets	Rs m	966	1,122	16.2
Fixed Assets	Rs m	3,002	3,385	12.7
Total Assets	Rs m	3,969	4,507	13.6

HERCULES HOISTS Cash Flow Statement Analysis

• HERCULES HOISTS's cash flow from operating activities (CFO) during FY19 stood at Rs 128 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY19 stood at Rs -45 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY19 stood at Rs -48 million on a YoY basis.
• Overall, net cash flows for the company during FY19 stood at Rs 35 million from the Rs -1 million net cash flows seen during FY18.

HERCULES HOISTS 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	151	128	-15.3%
Cash Flow from Investing Activities	Rs m	-114	-45	-
Cash Flow from Financing Activities	Rs m	-39	-48	-
Net Cash Flow	Rs m	-1	35	-

Current Valuations for HERCULES HOISTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 115.7, stands at 28.9 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 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 25.0 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	23.1	31.9
TTM Earnings per share	Rs	3.1	4.0
Diluted earnings per share	Rs	3.1	4.0
Price to Cash Flow	x	26.4	25.0
TTM P/E ratio	x	34.2	28.9
Price / Book Value ratio	x	1.2	0.9
Market Cap	Rs m	4,573	3,962
Dividends per share (Unadj.)	Rs	1.3	1.5

Ratio Analysis for HERCULES HOISTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.9x during FY19, from 7.0x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 3.0% during FY19, from 2.6% 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 3.8% during FY19, from 2.8% 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 2.8% during FY19, from 2.5% 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	7.0	6.9
Debtors’ Days	Days	931	406
Interest coverage	x	282.5	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.5	2.8
Return on equity	%	2.6	3.0
Return on capital employed	%	2.8	3.8

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 up from Rs 104.7 to Rs 115.7, registering a gain of Rs 11.1 or around 10.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,472.0 (up 0.5%). Over the last one year it has moved down from 18,476.7 to 18,472.0, a loss of 5 points (down 0.0%).

Overall, the S&P BSE SENSEX is up 16.3% 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