HIMATSINGKA SEIDE 2022-23 Annual Report Analysis

Thu, 5 Oct

HIMATSINGKA SEIDE 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.

HIMATSINGKA SEIDE Income Statement Analysis

• Operating income during the year fell 15.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 48.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY23 as against 16.7% in FY22.
• Depreciation charges increased by 3.5% and finance costs increased by 42.0% YoY, respectively.
• Other income grew by 282.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 4.4% in FY22 to 2.4% in FY23.

HIMATSINGKA SEIDE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	31,840	26,777	-15.9%
Other income	Rs m	196	750	282.4%
Total Revenues	Rs m	32,036	27,528	-14.1%
Gross profit	Rs m	5,303	2,710	-48.9%
Depreciation	Rs m	1,584	1,640	3.5%
Interest	Rs m	1,812	2,572	42.0%
Profit before tax	Rs m	2,103	-752	NA
Tax	Rs m	695	-111	NA
Profit after tax	Rs m	1,408	-641	NA
Gross profit margin	%	16.7	10.1
Effective tax rate	%	33.0	14.8
Net profit margin	%	4.4	-2.4

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HIMATSINGKA SEIDE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 23 billion as compared to Rs 22 billion in FY22, thereby witnessing an increase of 2.8%.
• Long-term debt down at Rs 15 billion as compared to Rs 16 billion during FY22, a fall of 7.1%.
• Current assets fell 0% and stood at Rs 24 billion, while fixed assets fell 3% and stood at Rs 34 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 59 billion as against Rs 60 billion during FY22, thereby witnessing a fall of 2%.

HIMATSINGKA SEIDE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	14,697	14,490	-1.4
Current Liabilities	Rs m	22,254	22,879	2.8
Long-term Debt	Rs m	15,892	14,770	-7.1
Total Liabilities	Rs m	59,642	58,545	-1.8
Current assets	Rs m	23,532	23,529	0.0
Fixed Assets	Rs m	35,321	34,173	-3.2
Total Assets	Rs m	59,642	58,545	-1.8

HIMATSINGKA SEIDE Cash Flow Statement Analysis

• HIMATSINGKA SEIDE's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 421.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 22 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -567 million from the Rs 483 million net cash flows seen during FY22.

HIMATSINGKA SEIDE 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	679	3,541	421.9%
Cash Flow from Investing Activities	Rs m	-1,363	22	-
Cash Flow from Financing Activities	Rs m	1,213	-4,009	-
Net Cash Flow	Rs m	483	-567	-

Current Valuations for HIMATSINGKA SEIDE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -6.5, an decline from the EPS of Rs 14.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 132.6, stands at 65.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.9 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	323.4	272.0
TTM Earnings per share	Rs	14.3	-6.5
Diluted earnings per share	Rs	14.3	-6.5
Price to Cash Flow	x	5.0	11.9
TTM P/E ratio	x	10.5	65.9
Price / Book Value ratio	x	1.5	0.8
Market Cap	Rs m	21,855	11,886
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for HIMATSINGKA SEIDE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY23, from 1.1x 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 0.7x during FY23, from 2.2x 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 -4.4% during FY23, from 9.6% 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 6.2% during FY23, from 12.8% 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 3.3% during FY23, from 5.4% 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	1.1	1.0
Debtors’ Days	Days	458	913
Interest coverage	x	2.2	0.7
Debt to equity ratio	x	1.1	1.0
Return on assets	%	5.4	3.3
Return on equity	%	9.6	-4.4
Return on capital employed	%	12.8	6.2

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 94.2 to Rs 132.6, registering a gain of Rs 38.5 or around 40.8%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

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