HIMATSINGKA SEIDE 2021-22 Annual Report Analysis

Mon, 12 Sep

HIMATSINGKA SEIDE 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.

HIMATSINGKA SEIDE Income Statement Analysis

• Operating income during the year rose 41.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 83.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.7% in FY22 as against 12.8% in FY21.
• Depreciation charges increased by 3.9% and finance costs increased by 2.2% YoY, respectively.
• Other income grew by 38.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.4% in FY21 to 4.4% in FY22.

HIMATSINGKA SEIDE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	22,583	31,840	41.0%
Other income	Rs m	142	196	38.1%
Total Revenues	Rs m	22,725	32,036	41.0%
Gross profit	Rs m	2,890	5,303	83.5%
Depreciation	Rs m	1,525	1,584	3.9%
Interest	Rs m	1,772	1,812	2.2%
Profit before tax	Rs m	-265	2,103	NA
Tax	Rs m	269	695	158.7%
Profit after tax	Rs m	-533	1,408	NA
Gross profit margin	%	12.8	16.7
Effective tax rate	%	-101.4	33.0
Net profit margin	%	-2.4	4.4

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HIMATSINGKA SEIDE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 22 billion as compared to Rs 21 billion in FY21, thereby witnessing an increase of 8.5%.
• Long-term debt stood at Rs 16 billion as compared to Rs 14 billion during FY21, a growth of 15.7%.
• Current assets rose 36% and stood at Rs 24 billion, while fixed assets fell 3% and stood at Rs 35 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 60 billion as against Rs 54 billion during FY21, thereby witnessing a growth of 10%.

HIMATSINGKA SEIDE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	13,152	14,697	11.7
Current Liabilities	Rs m	20,512	22,254	8.5
Long-term Debt	Rs m	13,740	15,892	15.7
Total Liabilities	Rs m	54,096	59,642	10.3
Current assets	Rs m	17,820	24,321	36.5
Fixed Assets	Rs m	36,276	35,321	-2.6
Total Assets	Rs m	54,096	59,642	10.3

HIMATSINGKA SEIDE Cash Flow Statement Analysis

• HIMATSINGKA SEIDE's cash flow from operating activities (CFO) during FY22 stood at Rs 679 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -1 billion, an improvement of 777.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 1 billion, an improvement of 122% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 483 million from the Rs 201 million net cash flows seen during FY21.

HIMATSINGKA SEIDE 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	5,764	679	-88.2%
Cash Flow from Investing Activities	Rs m	-155	-1,363	-
Cash Flow from Financing Activities	Rs m	-5,440	1,213	-
Net Cash Flow	Rs m	201	483	140.1%

Current Valuations for HIMATSINGKA SEIDE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.3, an improvement from the EPS of Rs -5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.5, stands at 37.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	229.4	323.4
TTM Earnings per share	Rs	-5.4	14.3
Diluted earnings per share	Rs	-5.4	14.3
Price to Cash Flow	x	14.4	7.3
TTM P/E ratio	x	-26.7	37.6
Price / Book Value ratio	x	0.8	1.5
Market Cap	Rs m	11,025	21,855
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for HIMATSINGKA SEIDE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY22, from 0.9x 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 2.2x during FY22, from 0.9x 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 9.6% during FY22, from -4.1% 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 12.8% during FY22, from 5.6% 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 5.4% during FY22, from 2.3% 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	0.9	1.1
Debtors’ Days	Days	536	458
Interest coverage	x	0.9	2.2
Debt to equity ratio	x	1.0	1.1
Return on assets	%	2.3	5.4
Return on equity	%	-4.1	9.6
Return on capital employed	%	5.6	12.8

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 down from Rs 242.6 to Rs 108.5, registering a loss of Rs 134.1 or around 55.3%.

Overall, the S&P BSE SENSEX is up 3.4% 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