HIGH ENERGY 2021-22 Annual Report Analysis

Tue, 14 Jun

HIGH ENERGY 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.

HIGH ENERGY Income Statement Analysis

• Operating income during the year rose 2.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 36.8% in FY22 as against 38.5% in FY21.
• Depreciation charges increased by 1.0% and finance costs decreased by 26.2% YoY, respectively.
• Other income grew by 52.7% YoY.
• Net profit for the year declined by 2.1% YoY.
• Net profit margins during the year declined from 23.5% in FY21 to 22.6% in FY22.

HIGH ENERGY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	778	796	2.2%
Other income	Rs m	3	4	52.7%
Total Revenues	Rs m	781	800	2.4%
Gross profit	Rs m	300	292	-2.4%
Depreciation	Rs m	11	11	1.0%
Interest	Rs m	51	38	-26.2%
Profit before tax	Rs m	240	247	3.1%
Tax	Rs m	57	68	20.0%
Profit after tax	Rs m	183	180	-2.1%
Gross profit margin	%	38.5	36.8
Effective tax rate	%	23.6	27.4
Net profit margin	%	23.5	22.6

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HIGH ENERGY Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 377 million as compared to Rs 432 million in FY21, thereby witnessing an decrease of -12.6%.
• Current assets rose 9% and stood at Rs 656 million, while fixed assets fell 2% and stood at Rs 328 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 984 million as against Rs 936 million during FY21, thereby witnessing a growth of 5%.

HIGH ENERGY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	419	557	32.8
Current Liabilities	Rs m	432	377	-12.6
Long-term Debt	Rs m	28	0	-100.0
Total Liabilities	Rs m	936	984	5.1
Current assets	Rs m	600	656	9.4
Fixed Assets	Rs m	336	328	-2.5
Total Assets	Rs m	936	984	5.1

HIGH ENERGY Cash Flow Statement Analysis

• HIGH ENERGY's cash flow from operating activities (CFO) during FY22 stood at Rs 161 million, an improvement of 73.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -169 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -11 million from the Rs 55 million net cash flows seen during FY21.

HIGH ENERGY 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	92	161	73.9%
Cash Flow from Investing Activities	Rs m	-7	-3	-
Cash Flow from Financing Activities	Rs m	-30	-169	-
Net Cash Flow	Rs m	55	-11	-

Current Valuations for HIGH ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 100.3, an decline from the EPS of Rs 102.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,330.0, stands at 13.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 17.2 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	434.8	444.4
TTM Earnings per share	Rs	102.4	100.3
Diluted earnings per share	Rs	102.2	100.1
Price to Cash Flow	x	7.6	17.2
TTM P/E ratio	x	8.0	13.3
Price / Book Value ratio	x	2.6	5.9
Market Cap	Rs m	1,093	3,282
Dividends per share (Unadj.)	Rs	15.0	15.0

Ratio Analysis for HIGH ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY22, from 1.4x 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 7.5x during FY22, from 5.7x 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 declined and down at 32.2% during FY22, from 43.7% 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 declined and down at 51.2% during FY22, from 65.1% 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 declined and down at 22.1% during FY22, from 25.1% 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	1.4	1.7
Debtors’ Days	Days	855	904
Interest coverage	x	5.7	7.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	25.1	22.1
Return on equity	%	43.7	32.2
Return on capital employed	%	65.1	51.2

To see how HIGH ENERGY has performed over the last 5 years, please visit here.

HIGH ENERGY Share Price Performance

Over the last one year, HIGH ENERGY share price has moved up from Rs 1,219.4 to Rs 1,330.0, registering a gain of Rs 110.6 or around 9.1%.

Overall, the S&P BSE SENSEX is up 1.1% over the year.

(To know more, check out historical annual results for HIGH ENERGY and quarterly results for HIGH ENERGY)

Read: Latest Annual Report Analysis of HIGH ENERGY