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HERCULES HOISTS 2022-23 Annual Report Analysis

Mon, 24 Jul

HERCULES HOISTS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

HERCULES HOISTS Income Statement Analysis

• Operating income during the year rose 39.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1942.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 67.1% in FY23 as against 4.6% in FY22.
• Depreciation charges increased by 60.0% and finance costs increased by 5390.0% YoY, respectively.
• Other income grew by 22.1% YoY.
• Net profit for the year grew by 591.4% YoY.
• Net profit margins during the year grew from 13.8% in FY22 to 68.5% in FY23.

HERCULES HOISTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,084	1,508	39.0%
Other income	Rs m	160	195	22.1%
Total Revenues	Rs m	1,244	1,703	36.9%
Gross profit	Rs m	49	1,011	1,942.9%
Depreciation	Rs m	25	40	60.0%
Interest	Rs m	0	5	5,390.0%
Profit before tax	Rs m	184	1,161	529.4%
Tax	Rs m	35	128	265.3%
Profit after tax	Rs m	149	1,033	591.4%
Gross profit margin	%	4.6	67.1
Effective tax rate	%	19.0	11.0
Net profit margin	%	13.8	68.5

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HERCULES HOISTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 294 million as compared to Rs 277 million in FY22, thereby witnessing an increase of 6.3%.
• Current assets fell 1% and stood at Rs 1 billion, while fixed assets rose 18% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 8 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 14%.

HERCULES HOISTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,190	7,066	14.2
Current Liabilities	Rs m	277	294	6.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,791	7,738	13.9
Current assets	Rs m	1,381	1,369	-0.9
Fixed Assets	Rs m	5,410	6,369	17.7
Total Assets	Rs m	6,791	7,738	13.9

HERCULES HOISTS Cash Flow Statement Analysis

• HERCULES HOISTS's cash flow from operating activities (CFO) during FY23 stood at Rs 100 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -75 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs 103 million net cash flows seen during FY22.

HERCULES HOISTS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	141	100	-28.9%
Cash Flow from Investing Activities	Rs m	34	-5	-
Cash Flow from Financing Activities	Rs m	-72	-75	-
Net Cash Flow	Rs m	103	20	-80.6%

Current Valuations for HERCULES HOISTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.3, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 315.0, stands at 9.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 6.7 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	33.9	47.1
TTM Earnings per share	Rs	4.7	32.3
Diluted earnings per share	Rs	4.7	32.3
Price to Cash Flow	x	25.5	5.4
TTM P/E ratio	x	29.8	9.8
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	4,634	5,757
Dividends per share (Unadj.)	Rs	2.6	3.0

Ratio Analysis for HERCULES HOISTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.7x during FY23, from 5.0x during FY22. 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 212.5x during FY23, from 1,845.7x during FY22. 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 14.6% during FY23, from 2.4% during FY23. 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 16.5% during FY23, from 3.0% during FY22. 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 13.4% during FY23, from 2.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	5.0	4.7
Debtors’ Days	Days	239	266
Interest coverage	x	1,845.7	212.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.2	13.4
Return on equity	%	2.4	14.6
Return on capital employed	%	3.0	16.5

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 131.3 to Rs 315.0, registering a gain of Rs 183.7 or around 139.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 42,734.2 (up 0.8%). Over the last one year it has moved up from 29,009.4 to 42,734.2, a gain of 13,725 points (up 47.3%).

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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