HIGH ENERGY 2022-23 Annual Report Analysis

Sat, 3 Jun

HIGH ENERGY 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.

HIGH ENERGY Income Statement Analysis

• Operating income during the year rose 16.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 32.6% in FY23 as against 36.8% in FY22.
• Depreciation charges increased by 4.5% and finance costs decreased by 16.7% YoY, respectively.
• Other income grew by 281.5% YoY.
• Net profit for the year grew by 14.2% YoY.
• Net profit margins during the year declined from 22.6% in FY22 to 22.1% in FY23.

HIGH ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	796	928	16.7%
Other income	Rs m	4	16	281.5%
Total Revenues	Rs m	800	944	18.1%
Gross profit	Rs m	292	302	3.4%
Depreciation	Rs m	11	12	4.5%
Interest	Rs m	38	31	-16.7%
Profit before tax	Rs m	247	275	11.1%
Tax	Rs m	68	70	3.0%
Profit after tax	Rs m	180	205	14.2%
Gross profit margin	%	36.8	32.6
Effective tax rate	%	27.4	25.4
Net profit margin	%	22.6	22.1

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HIGH ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 374 million as compared to Rs 377 million in FY22, thereby witnessing an decrease of -0.8%.
• Current assets rose 14% and stood at Rs 751 million, while fixed assets rose 20% and stood at Rs 394 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 984 million during FY22, thereby witnessing a growth of 16%.

HIGH ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	557	735	31.9
Current Liabilities	Rs m	377	374	-0.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	984	1,145	16.4
Current assets	Rs m	656	751	14.4
Fixed Assets	Rs m	328	394	20.4
Total Assets	Rs m	984	1,145	16.4

HIGH ENERGY Cash Flow Statement Analysis

• HIGH ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 173 million, an improvement of 7.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -114 million, an improvement of 1,680.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -95 million, an improvement of 43% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -37 million from the Rs -11 million net cash flows seen during FY22.

HIGH ENERGY 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	161	173	7.5%
Cash Flow from Investing Activities	Rs m	-6	-114	-
Cash Flow from Financing Activities	Rs m	-166	-95	-
Net Cash Flow	Rs m	-11	-37	-

Current Valuations for HIGH ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.9, an decline from the EPS of Rs 100.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 419.9, stands at 18.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	444.4	103.6
TTM Earnings per share	Rs	100.3	22.9
Diluted earnings per share	Rs	20.0	22.9
Price to Cash Flow	x	14.2	14.9
TTM P/E ratio	x	15.1	18.4
Price / Book Value ratio	x	5.9	4.4
Market Cap	Rs m	3,282	3,235
Dividends per share (Unadj.)	Rs	3.0	3.5

Ratio Analysis for HIGH ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY23, from 1.7x 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 improved and stood at 9.7x during FY23, from 7.5x 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 declined and down at 27.9% during FY23, from 32.2% 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 declined and down at 41.7% during FY23, from 51.2% 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 declined and down at 20.6% during FY23, from 22.1% 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	1.7	2.0
Debtors’ Days	Days	904	1,127
Interest coverage	x	7.5	9.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	22.1	20.6
Return on equity	%	32.2	27.9
Return on capital employed	%	51.2	41.7

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 279.6 to Rs 419.9, registering a gain of Rs 140.3 or around 50.2%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

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