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H.G.INFRA ENGINEERING 2020-21 Annual Report Analysis
Wed, 31 Mar

H.G.INFRA ENGINEERING 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.

H.G.INFRA ENGINEERING Income Statement Analysis

  • Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 34.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.3% in FY21 as against 16.0% in FY20.
  • Depreciation charges increased by 11.6% and finance costs increased by 57.5% YoY, respectively.
  • Other income grew by 5.3% YoY.
  • Net profit for the year grew by 39.6% YoY.
  • Net profit margins during the year grew from 7.6% in FY20 to 9.1% in FY21.

H.G.INFRA ENGINEERING Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 22,171 26,023 17.4%
Other income Rs m 141 148 5.3%
Total Revenues Rs m 22,312 26,171 17.3%
Gross profit Rs m 3,551 4,757 34.0%
Depreciation Rs m 756 844 11.6%
Interest Rs m 598 942 57.5%
Profit before tax Rs m 2,338 3,120 33.4%
Tax Rs m 643 753 17.1%
Profit after tax Rs m 1,695 2,367 39.6%
Gross profit margin % 16.0 18.3
Effective tax rate % 27.5 24.1
Net profit margin % 7.6 9.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

H.G.INFRA ENGINEERING Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 10 billion as compared to Rs 12 billion in FY20, thereby witnessing an decrease of -10.8%.
  • Long-term debt stood at Rs 6 billion as compared to Rs 2 billion during FY20, a growth of 161.6%.
  • Current assets rose 9% and stood at Rs 18 billion, while fixed assets rose 50% and stood at Rs 9 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 23 billion during FY20, thereby witnessing a growth of 20%.

H.G.INFRA ENGINEERING Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 8,263 10,626 28.6
 
Current Liabilities Rs m 11,703 10,444 -10.8
Long-term Debt Rs m 2,130 5,570 161.6
Total Liabilities Rs m 22,826 27,463 20.3
 
Current assets Rs m 16,633 18,168 9.2
Fixed Assets Rs m 6,193 9,295 50.1
Total Assets Rs m 22,826 27,463 20.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



H.G.INFRA ENGINEERING Cash Flow Statement Analysis

  • H.G.INFRA ENGINEERING's cash flow from operating activities (CFO) during FY21 stood at Rs 706 million, an improvement of 97.7% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -1 billion, an improvement of 20.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs 2 billion, an improvement of 113% on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 1 billion from the Rs 215 million net cash flows seen during FY20.

H.G.INFRA ENGINEERING 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 357 706 97.7%
Cash Flow from Investing Activities Rs m -854 -1,026 -
Cash Flow from Financing Activities Rs m 711 1,516 113.1%
Net Cash Flow Rs m 215 1,196 457.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for H.G.INFRA ENGINEERING

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.3, an improvement from the EPS of Rs 26.0 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 297.5, stands at 8.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.9 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 340.2 399.3
TTM Earnings per share Rs 26.0 36.3
Diluted earnings per share Rs 26.0 36.3
Price to Cash Flow x 4.6 4.9
TTM P/E ratio x 6.6 8.2
Price / Book Value ratio x 1.7 1.5
Market Cap Rs m 14,403 15,677
Dividends per share (Unadj.) Rs 0.0 0.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for H.G.INFRA ENGINEERING

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.7x during FY21, from 1.4x 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 deteriorated and stood at 4.3x during FY21, from 4.9x 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 improved and stood at 22.3% during FY21, from 20.5% 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 25.1% during FY21, from 28.2% 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 improved and stood at 12.0% during FY21, from 10.0% 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 1.4 1.7
Debtors’ Days Days 113 82
Interest coverage x 4.9 4.3
Debt to equity ratio x 0.3 0.5
Return on assets % 10.0 12.0
Return on equity % 20.5 22.3
Return on capital employed % 28.2 25.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how H.G.INFRA ENGINEERING has performed over the last 5 years, please visit here.

H.G.INFRA ENGINEERING Share Price Performance

Over the last one year, H.G.INFRA ENGINEERING share price has moved up from Rs 171.3 to Rs 297.5, registering a gain of Rs 126.2 or around 73.7%.

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 H.G.INFRA ENGINEERING and quarterly results for H.G.INFRA ENGINEERING)

Annual Report FAQs

What is the current share price of H.G.INFRA ENGINEERING?

H.G.INFRA ENGINEERING currently trades at Rs 909.7 per share. You can check out the latest share price performance of H.G.INFRA ENGINEERING here...

What was the revenue of H.G.INFRA ENGINEERING in FY21? How does it compare to earlier years?

The revenues of H.G.INFRA ENGINEERING stood at Rs 26,171 m in FY21, which was up 17.3% compared to Rs 22,312 m reported in FY20.

H.G.INFRA ENGINEERING's revenue has grown from Rs 10,597 m in FY17 to Rs 26,171 m in FY21.

Over the past 5 years, the revenue of H.G.INFRA ENGINEERING has grown at a CAGR of 25.4%.

What was the net profit of H.G.INFRA ENGINEERING in FY21? How does it compare to earlier years?

The net profit of H.G.INFRA ENGINEERING stood at Rs 2,367 m in FY21, which was up 39.6% compared to Rs 1,695 m reported in FY20.

This compares to a net profit of Rs 1,245 m in FY19 and a net profit of Rs 843 m in FY18.

Over the past 5 years, H.G.INFRA ENGINEERING net profit has grown at a CAGR of 45.1%.

What does the cash flow statement of H.G.INFRA ENGINEERING reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of H.G.INFRA ENGINEERING reveals:

  • Cash flow from operations increased in FY21 and stood at Rs 706 m as compared to Rs 357 m in FY20.
  • Cash flow from investments decreased in FY21 and stood at Rs -1,026 m as compared to Rs -854 m in FY20.
  • Cash flow from financial activity increased in FY21 and stood at Rs 1,516 m as compared to Rs 711 m in FY20.

Here's the cash flow statement of H.G.INFRA ENGINEERING for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations644-78656357706
From Investments-1,137-4,46293-854-1,026
From Financial Activity6204,434-7827111,516
Net Cashflow127-106-332151,196

What does the Key Ratio analysis of H.G.INFRA ENGINEERING reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of H.G.INFRA ENGINEERING reveals:

  • Operating profit margins witnessed a fall and down at 18.3% in FY21 as against 16.0% in FY20.
  • Net profit margins grew from 7.6% in FY20 to 9.1% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.5 as compared to 0.3 in FY20.

Here's the ratio/financial analysis of H.G.INFRA ENGINEERING for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)11.814.915.116.018.3
Net Profit Margin (%)5.16.16.27.69.1
Debt to Equity Ratio (x)0.40.20.10.30.5

Read: Latest Annual Report Analysis of H.G.INFRA ENGINEERING

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