HINDUJA GLOBAL 2021-22 Annual Report Analysis

Tue, 20 Sep

HINDUJA GLOBAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HINDUJA GLOBAL Income Statement Analysis

• Operating income during the year rose 25.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.1% in FY22 as against 1.2% in FY21.
• Depreciation charges increased by 3.1% and finance costs decreased by 21.3% YoY, respectively.
• Other income grew by 110.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.3% in FY21 to 0.1% in FY22.

HINDUJA GLOBAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	26,018	32,637	25.4%
Other income	Rs m	712	1,498	110.4%
Total Revenues	Rs m	26,729	34,135	27.7%
Gross profit	Rs m	-316	361	NA
Depreciation	Rs m	1,173	1,209	3.1%
Interest	Rs m	351	276	-21.3%
Profit before tax	Rs m	-1,129	373	NA
Tax	Rs m	-543	343	NA
Profit after tax	Rs m	-586	31	NA
Gross profit margin	%	-1.2	1.1
Effective tax rate	%	48.1	91.8
Net profit margin	%	-2.3	0.1

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HINDUJA GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 20 billion as compared to Rs 13 billion in FY21, thereby witnessing an increase of 58.8%.
• Long-term debt down at Rs 2 billion as compared to Rs 9 billion during FY21, a fall of 73.5%.
• Current assets rose 145% and stood at Rs 64 billion, while fixed assets rose 88% and stood at Rs 42 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 106 billion as against Rs 49 billion during FY21, thereby witnessing a growth of 118%.

HINDUJA GLOBAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	20,842	78,084	274.6
Current Liabilities	Rs m	12,794	20,321	58.8
Long-term Debt	Rs m	8,559	2,270	-73.5
Total Liabilities	Rs m	48,672	106,267	118.3
Current assets	Rs m	26,103	63,833	144.5
Fixed Assets	Rs m	22,569	42,434	88.0
Total Assets	Rs m	48,672	106,267	118.3

HINDUJA GLOBAL Cash Flow Statement Analysis

• HINDUJA GLOBAL's cash flow from operating activities (CFO) during FY22 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 21 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 15 billion from the Rs -8 million net cash flows seen during FY21.

HINDUJA GLOBAL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	6,916	4,935	-28.6%
Cash Flow from Investing Activities	Rs m	-2,092	21,076	-
Cash Flow from Financing Activities	Rs m	-4,757	-10,332	-
Net Cash Flow	Rs m	-8	15,180	-

Current Valuations for HINDUJA GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an improvement from the EPS of Rs -28.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,382.0, stands at 29.4 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 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 83.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	1,246.1	780.8
TTM Earnings per share	Rs	-28.1	0.7
Diluted earnings per share	Rs	-14.0	0.7
Price to Cash Flow	x	122.4	83.8
TTM P/E ratio	x	79.2	29.4
Price / Book Value ratio	x	1.2	1.3
Market Cap	Rs m	24,265	103,821
Dividends per share (Unadj.)	Rs	40.0	245.0

Ratio Analysis for HINDUJA GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY22, from 2.0x during FY21. 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 2.4x during FY22, from -2.2x during FY21. 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 0.0% during FY22, from -2.8% during FY22. 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 0.8% during FY22, from -2.6% during FY21. 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 0.3% during FY22, from -0.5% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.0	3.1
Debtors’ Days	Days	1,726	689
Interest coverage	x	-2.2	2.4
Debt to equity ratio	x	0.4	0.0
Return on assets	%	-0.5	0.3
Return on equity	%	-2.8	0.0
Return on capital employed	%	-2.6	0.8

To see how HINDUJA GLOBAL has performed over the last 5 years, please visit here.

HINDUJA GLOBAL Share Price Performance

Over the last one year, HINDUJA GLOBAL share price has moved down from Rs 2,860.7 to Rs 1,382.0, registering a loss of Rs 1,478.7 or around 51.7%.

Overall, the S&P BSE SENSEX is up 0.9% over the year.

(To know more, check out historical annual results for HINDUJA GLOBAL and quarterly results for HINDUJA GLOBAL)