HIMATSINGKA SEIDE 2020-21 Annual Report Analysis

Wed, 31 Mar

HIMATSINGKA SEIDE has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HIMATSINGKA SEIDE Income Statement Analysis

• Operating income during the year fell 4.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.8% in FY21 as against 14.6% in FY20.
• Depreciation charges increased by 20.8% and finance costs decreased by 9.0% YoY, respectively.
• Other income declined by 77.0% YoY.
• Net profit for the year declined by 502.6% YoY.
• Net profit margins during the year declined from 0.6% in FY20 to 2.4% in FY21.

HIMATSINGKA SEIDE Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	23,579	22,583	-4.2%
Other income	Rs m	617	142	-77.0%
Total Revenues	Rs m	24,197	22,725	-6.1%
Gross profit	Rs m	3,444	2,890	-16.1%
Depreciation	Rs m	1,262	1,525	20.8%
Interest	Rs m	1,947	1,772	-9.0%
Profit before tax	Rs m	852	-265	-131.1%
Tax	Rs m	719	269	-62.6%
Profit after tax	Rs m	133	-533	-502.6%
Gross profit margin	%	14.6	12.8
Effective tax rate	%	84.4	-101.4
Net profit margin	%	0.6	-2.4

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HIMATSINGKA SEIDE Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 21 billion as compared to Rs 19 billion in FY20, thereby witnessing an increase of 6.4%.
• Long-term debt down at Rs 14 billion as compared to Rs 16 billion during FY20, a fall of 13.6%.
• Current assets fell 6% and stood at Rs 18 billion, while fixed assets fell 1% and stood at Rs 36 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 54 billion as against Rs 56 billion during FY20, thereby witnessing a fall of 3%.

HIMATSINGKA SEIDE Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	13,600	13,152	-3.3
Current Liabilities	Rs m	19,280	20,512	6.4
Long-term Debt	Rs m	15,897	13,740	-13.6
Total Liabilities	Rs m	55,505	54,096	-2.5
Current assets	Rs m	18,899	17,820	-5.7
Fixed Assets	Rs m	36,607	36,276	-0.9
Total Assets	Rs m	55,505	54,096	-2.5

HIMATSINGKA SEIDE Cash Flow Statement Analysis

• HIMATSINGKA SEIDE's cash flow from operating activities (CFO) during FY21 stood at Rs 6 billion, an improvement of 32.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -155 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 201 million from the Rs -1 billion net cash flows seen during FY20.

HIMATSINGKA SEIDE Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	4,340	5,764	32.8%
Cash Flow from Investing Activities	Rs m	-2,045	-155	-
Cash Flow from Financing Activities	Rs m	-3,477	-5,440	-
Net Cash Flow	Rs m	-1,200	201	-

Current Valuations for HIMATSINGKA SEIDE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.4, an decline from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 144.9, stands at -26.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 11.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	239.5	229.4
TTM Earnings per share	Rs	1.3	-5.4
Diluted earnings per share	Rs	1.3	-5.4
Price to Cash Flow	x	4.2	11.1
TTM P/E ratio	x	44.1	-26.7
Price / Book Value ratio	x	1.0	0.8
Market Cap	Rs m	13,981	11,025
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for HIMATSINGKA SEIDE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY21, from 1.0x during FY20. 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 0.9x during FY21, from 1.4x during FY20. 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 -4.1% during FY21, from 1.0% during FY21. 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 5.6% during FY21, from 9.5% during FY20. 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 2.3% during FY21, from 3.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.0	0.9
Debtors’ Days	Days	182	536
Interest coverage	x	1.4	0.9
Debt to equity ratio	x	1.2	1.0
Return on assets	%	3.7	2.3
Return on equity	%	1.0	-4.1
Return on capital employed	%	9.5	5.6

To see how HIMATSINGKA SEIDE has performed over the last 5 years, please visit here.

HIMATSINGKA SEIDE Share Price Performance

Over the last one year, HIMATSINGKA SEIDE share price has moved up from Rs 59.5 to Rs 144.9, registering a gain of Rs 85.5 or around 143.7%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for HIMATSINGKA SEIDE and quarterly results for HIMATSINGKA SEIDE)

Read: Latest Annual Report Analysis of HIMATSINGKA SEIDE