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HI-TECH PIPES 2022-23 Annual Report Analysis

Wed, 4 Oct

HI-TECH PIPES 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.

HI-TECH PIPES Income Statement Analysis

• Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.1% in FY23 as against 5.3% in FY22.
• Depreciation charges increased by 42.5% and finance costs decreased by 3.2% YoY, respectively.
• Other income grew by 141.4% YoY.
• Net profit for the year declined by 6.6% YoY.
• Net profit margins during the year declined from 2.1% in FY22 to 1.6% in FY23.

HI-TECH PIPES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	18,788	23,858	27.0%
Other income	Rs m	9	23	141.4%
Total Revenues	Rs m	18,798	23,881	27.0%
Gross profit	Rs m	1,005	967	-3.8%
Depreciation	Rs m	97	138	42.5%
Interest	Rs m	365	353	-3.2%
Profit before tax	Rs m	553	499	-9.8%
Tax	Rs m	150	122	-18.6%
Profit after tax	Rs m	403	377	-6.6%
Gross profit margin	%	5.3	4.1
Effective tax rate	%	27.1	24.5
Net profit margin	%	2.1	1.6

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HI-TECH PIPES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 11.4%.
• Long-term debt down at Rs 940 million as compared to Rs 1 billion during FY22, a fall of 36.0%.
• Current assets rose 13% and stood at Rs 6 billion, while fixed assets rose 31% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 20%.

HI-TECH PIPES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,585	3,311	28.1
Current Liabilities	Rs m	3,448	3,840	11.4
Long-term Debt	Rs m	1,469	940	-36.0
Total Liabilities	Rs m	7,707	9,216	19.6
Current assets	Rs m	4,917	5,574	13.4
Fixed Assets	Rs m	2,789	3,642	30.6
Total Assets	Rs m	7,707	9,216	19.6

HI-TECH PIPES Cash Flow Statement Analysis

• HI-TECH PIPES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 124.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -285 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 10 million from the Rs 3 million net cash flows seen during FY22.

HI-TECH PIPES 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	-173	1,337	-
Cash Flow from Investing Activities	Rs m	-464	-1,042	-
Cash Flow from Financing Activities	Rs m	640	-285	-
Net Cash Flow	Rs m	3	10	266.5%

Current Valuations for HI-TECH PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 32.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 80.4, stands at 25.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 131.5 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	1,531.3	186.7
TTM Earnings per share	Rs	32.9	2.9
Diluted earnings per share	Rs	3.1	2.9
Price to Cash Flow	x	0.0	131.5
TTM P/E ratio	x	0.0	25.5
Price / Book Value ratio	x	2.6	20.4
Market Cap	Rs m	6,718	67,673
Dividends per share (Unadj.)	Rs	0.1	0.0

Ratio Analysis for HI-TECH PIPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.4x 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 deteriorated and stood at 2.4x during FY23, from 2.5x 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 11.4% during FY23, from 15.6% 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 20.0% during FY23, from 22.6% 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 7.9% during FY23, from 10.0% 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	1.4	1.5
Debtors’ Days	Days	325	284
Interest coverage	x	2.5	2.4
Debt to equity ratio	x	0.6	0.3
Return on assets	%	10.0	7.9
Return on equity	%	15.6	11.4
Return on capital employed	%	22.6	20.0

To see how HI-TECH PIPES has performed over the last 5 years, please visit here.

HI-TECH PIPES Share Price Performance

Over the last one year, HI-TECH PIPES share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 22,585.9 (down 1.9%). Over the last one year it has moved up from 18,460.5 to 22,585.9, a gain of 4,125 points (up 22.3%).

Overall, the NIFTY 50 is down 0.4% over the year.

(To know more, check out historical annual results for HI-TECH PIPES and quarterly results for HI-TECH PIPES)