HILTON METAL 2021-22 Annual Report Analysis

Thu, 25 Aug

HILTON METAL 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.

HILTON METAL Income Statement Analysis

• Operating income during the year rose 77.1% 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 5.0% in FY22 as against 36.2% in FY21.
• Depreciation charges increased by 0.9% and finance costs increased by 6.1% YoY, respectively.
• Other income declined by 72.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 41.2% in FY21 to 2.1% in FY22.

HILTON METAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	475	841	77.1%
Other income	Rs m	2	1	-72.5%
Total Revenues	Rs m	477	842	76.5%
Gross profit	Rs m	-172	42	NA
Depreciation	Rs m	25	25	0.9%
Interest	Rs m	39	42	6.1%
Profit before tax	Rs m	-235	-25	NA
Tax	Rs m	-39	-43	NA
Profit after tax	Rs m	-196	18	NA
Gross profit margin	%	-36.2	5.0
Effective tax rate	%	16.7	170.5
Net profit margin	%	-41.2	2.1

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HILTON METAL Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 498 million as compared to Rs 513 million in FY21, thereby witnessing an decrease of -2.9%.
• Long-term debt stood at Rs 186 million as compared to Rs 151 million during FY21, a growth of 23.2%.
• Current assets fell 9% and stood at Rs 682 million, while fixed assets rose 17% and stood at Rs 443 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a fall of 0%.

HILTON METAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	431	449	4.1
Current Liabilities	Rs m	513	498	-2.9
Long-term Debt	Rs m	151	186	23.2
Total Liabilities	Rs m	1,130	1,125	-0.4
Current assets	Rs m	752	682	-9.3
Fixed Assets	Rs m	378	443	17.2
Total Assets	Rs m	1,130	1,125	-0.4

HILTON METAL Cash Flow Statement Analysis

• HILTON METAL's cash flow from operating activities (CFO) during FY22 stood at Rs 95 million, an improvement of 2,000.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -85 million, an improvement of 277.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -7 million on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 3 million from the Rs -6 million net cash flows seen during FY21.

HILTON METAL 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	5	95	2,000.2%
Cash Flow from Investing Activities	Rs m	-23	-85	-
Cash Flow from Financing Activities	Rs m	12	-7	-
Net Cash Flow	Rs m	-6	3	-

Current Valuations for HILTON METAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an improvement from the EPS of Rs -15.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 62.7, stands at 32.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 6.3 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	38.2	67.6
TTM Earnings per share	Rs	-15.7	1.4
Diluted earnings per share	Rs	-13.0	1.2
Price to Cash Flow	x	-0.8	6.3
TTM P/E ratio	x	-0.7	32.9
Price / Book Value ratio	x	0.3	0.6
Market Cap	Rs m	143	270
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HILTON METAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY22, from 1.5x 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 0.4x during FY22, from -5.0x 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 3.9% during FY22, from -45.4% 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 2.7% during FY22, from -33.6% 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 5.3% during FY22, from -13.8% 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	1.5	1.4
Debtors’ Days	Days	724	60
Interest coverage	x	-5.0	0.4
Debt to equity ratio	x	0.3	0.4
Return on assets	%	-13.8	5.3
Return on equity	%	-45.4	3.9
Return on capital employed	%	-33.6	2.7

To see how HILTON METAL has performed over the last 5 years, please visit here.

HILTON METAL Share Price Performance

Over the last one year, HILTON METAL share price has moved up from Rs 11.2 to Rs 62.7, registering a gain of Rs 51.5 or around 459.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 31,546.1 (down 0.1%). Over the last one year it has moved up from 23,791.8 to 31,546.1, a gain of 7,754 points (up 32.6%).

Overall, the S&P BSE SENSEX is up 5.8% over the year.

(To know more, check out historical annual results for HILTON METAL and quarterly results for HILTON METAL)

Read: Latest Annual Report Analysis of HILTON METAL