HERCULES HOISTS 2020-21 Annual Report Analysis

Wed, 31 Mar

HERCULES HOISTS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HERCULES HOISTS Income Statement Analysis

• Operating income during the year fell 5.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 75.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.6% in FY21 as against 2.5% in FY20.
• Depreciation charges decreased by 18.1% and finance costs decreased by 52.6% YoY, respectively.
• Other income declined by 31.7% YoY.
• Net profit for the year declined by 40.2% YoY.
• Net profit margins during the year declined from 15.6% in FY20 to 9.9% in FY21.

HERCULES HOISTS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	830	784	-5.6%
Other income	Rs m	175	119	-31.7%
Total Revenues	Rs m	1,005	903	-10.1%
Gross profit	Rs m	21	5	-75.4%
Depreciation	Rs m	35	29	-18.1%
Interest	Rs m	0	0	-52.6%
Profit before tax	Rs m	160	96	-40.3%
Tax	Rs m	30	18	-40.7%
Profit after tax	Rs m	130	78	-40.2%
Gross profit margin	%	2.5	0.6
Effective tax rate	%	18.8	18.7
Net profit margin	%	15.6	9.9

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HERCULES HOISTS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 145 million as compared to Rs 109 million in FY20, thereby witnessing an increase of 33.4%.
• Current assets fell 17% and stood at Rs 903 million, while fixed assets rose 79% and stood at Rs 4 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 5 billion as against Rs 4 billion during FY20, thereby witnessing a growth of 49%.

HERCULES HOISTS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	3,372	4,944	46.6
Current Liabilities	Rs m	109	145	33.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,522	5,255	49.2
Current assets	Rs m	1,087	903	-17.0
Fixed Assets	Rs m	2,434	4,352	78.8
Total Assets	Rs m	3,522	5,255	49.2

HERCULES HOISTS Cash Flow Statement Analysis

• HERCULES HOISTS's cash flow from operating activities (CFO) during FY21 stood at Rs 155 million, an improvement of 52.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -86 million, an improvement of 27.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -58 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 12 million from the Rs -23 million net cash flows seen during FY20.

HERCULES HOISTS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	102	155	52.0%
Cash Flow from Investing Activities	Rs m	-67	-86	-
Cash Flow from Financing Activities	Rs m	-58	-58	-
Net Cash Flow	Rs m	-23	12	-

Current Valuations for HERCULES HOISTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.4, 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 111.7, stands at 46.0 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 4.6 times.
• The company's price to cash flow (P/CF) ratio stood at 28.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	25.9	24.5
TTM Earnings per share	Rs	4.1	2.4
Diluted earnings per share	Rs	4.1	2.4
Price to Cash Flow	x	9.8	28.4
TTM P/E ratio	x	12.4	46.0
Price / Book Value ratio	x	0.8	0.6
Market Cap	Rs m	2,797	3,030
Dividends per share (Unadj.)	Rs	1.8	1.5

Ratio Analysis for HERCULES HOISTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.2x during FY21, from 10.0x during FY20. 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 1,062.2x during FY21, from 842.5x during FY20. 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 FY21, from 3.8% during FY21. 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 1.9% during FY21, from 4.7% during FY20. 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 FY21, from 3.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	10.0	6.2
Debtors’ Days	Days	430	459
Interest coverage	x	842.5	1,062.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	1.5
Return on equity	%	3.8	1.6
Return on capital employed	%	4.7	1.9

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 50.5 to Rs 111.7, registering a gain of Rs 61.2 or around 121.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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