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HIND.COMPOSI 2021-22 Annual Report Analysis
Fri, 7 Oct

HIND.COMPOSI 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.

HIND.COMPOSI Income Statement Analysis

  • Operating income during the year rose 25.0% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 24.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY22 as against 14.2% in FY21.
  • Depreciation charges decreased by 3.4% and finance costs decreased by 60.2% YoY, respectively.
  • Other income declined by 93.9% YoY.
  • Net profit for the year grew by 9.5% YoY.
  • Net profit margins during the year declined from 10.6% in FY21 to 9.3% in FY22.

HIND.COMPOSI Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 1,860 2,326 25.0%
Other income Rs m 62 4 -93.9%
Total Revenues Rs m 1,922 2,330 21.2%
Gross profit Rs m 264 330 24.9%
Depreciation Rs m 89 86 -3.4%
Interest Rs m 2 1 -60.2%
Profit before tax Rs m 235 247 5.0%
Tax Rs m 38 31 -18.1%
Profit after tax Rs m 197 216 9.5%
Gross profit margin % 14.2 14.2
Effective tax rate % 16.2 12.6
Net profit margin % 10.6 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

HIND.COMPOSI Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 493 million as compared to Rs 474 million in FY21, thereby witnessing an increase of 4.1%.
  • Long-term debt stood at Rs 2 million as compared to Rs 0 million during FY21, a growth of 375.6%.
  • Current assets fell 27% and stood at Rs 1 billion, while fixed assets rose 16% and stood at Rs 9 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 10 billion as against Rs 9 billion during FY21, thereby witnessing a growth of 9%.

HIND.COMPOSI Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 8,170 9,173 12.3
 
Current Liabilities Rs m 474 493 4.1
Long-term Debt Rs m 0 2 375.6
Total Liabilities Rs m 9,234 10,039 8.7
 
Current assets Rs m 1,526 1,109 -27.3
Fixed Assets Rs m 7,708 8,919 15.7
Total Assets Rs m 9,234 10,039 8.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HIND.COMPOSI Cash Flow Statement Analysis

  • HIND.COMPOSI's cash flow from operating activities (CFO) during FY22 stood at Rs 49 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs 48 million, an improvement of 2,537.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -31 million, an improvement of 64% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 66 million from the Rs 8 million net cash flows seen during FY21.

HIND.COMPOSI 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 92 49 -46.5%
Cash Flow from Investing Activities Rs m 2 48 2,537.4%
Cash Flow from Financing Activities Rs m -86 -31 -
Net Cash Flow Rs m 8 66 761.3%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HIND.COMPOSI

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.6, an improvement from the EPS of Rs 13.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 344.8, stands at 18.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 2.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.0 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 126.0 157.5
TTM Earnings per share Rs 13.4 14.6
Diluted earnings per share Rs 13.4 14.6
Price to Cash Flow x 13.7 15.0
TTM P/E ratio x 18.6 18.2
Price / Book Value ratio x 0.4 0.5
Market Cap Rs m 3,604 4,533
Dividends per share (Unadj.) Rs 2.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HIND.COMPOSI

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY22, from 3.2x 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 317.8x during FY22, from 121.0x 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 declined and down at 2.4% during FY22, from 2.4% 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 declined and down at 2.7% during FY22, from 2.9% 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 2.2% during FY22, from 2.2% 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 3.2 2.2
Debtors’ Days Days 812 581
Interest coverage x 121.0 317.8
Debt to equity ratio x 0.0 0.0
Return on assets % 2.2 2.2
Return on equity % 2.4 2.4
Return on capital employed % 2.9 2.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how HIND.COMPOSI has performed over the last 5 years, please visit here.

HIND.COMPOSI Share Price Performance

Over the last one year, HIND.COMPOSI share price has moved up from Rs 330.0 to Rs 344.8, registering a gain of Rs 14.9 or around 4.5%.

Overall, the S&P BSE SENSEX is down 2.1% over the year.

(To know more, check out historical annual results for HIND.COMPOSI and quarterly results for HIND.COMPOSI)

Annual Report FAQs

What is the current share price of HIND.COMPOSI?

HIND.COMPOSI currently trades at Rs 388.3 per share. You can check out the latest share price performance of HIND.COMPOSI here...

What was the revenue of HIND.COMPOSI in FY22? How does it compare to earlier years?

The revenues of HIND.COMPOSI stood at Rs 2,330 m in FY22, which was up 21.2% compared to Rs 1,922 m reported in FY21.

HIND.COMPOSI's revenue has grown from Rs 1,954 m in FY18 to Rs 2,330 m in FY22.

Over the past 5 years, the revenue of HIND.COMPOSI has grown at a CAGR of 4.5%.

What was the net profit of HIND.COMPOSI in FY22? How does it compare to earlier years?

The net profit of HIND.COMPOSI stood at Rs 216 m in FY22, which was up 9.5% compared to Rs 197 m reported in FY21.

This compares to a net profit of Rs 120 m in FY20 and a net profit of Rs 190 m in FY19.

Over the past 5 years, HIND.COMPOSI net profit has grown at a CAGR of -3.9%.

What does the cash flow statement of HIND.COMPOSI reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of HIND.COMPOSI reveals:

  • Cash flow from operations decreased in FY22 and stood at Rs 49 m as compared to Rs 92 m in FY21.
  • Cash flow from investments increased in FY22 and stood at Rs 48 m as compared to Rs 2 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs -31 m as compared to Rs -86 m in FY21.

Here's the cash flow statement of HIND.COMPOSI for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations50434269249
From Investments-517-1747248
From Financial Activity-9-25-15-86-31
Net Cashflow-23-758866

What does the Key Ratio analysis of HIND.COMPOSI reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of HIND.COMPOSI reveals:

  • Operating profit margins witnessed a fall and stood at 14.2% in FY22 as against 14.2% in FY21.
  • Net profit margins declined from 10.6% in FY21 to 9.3% in FY22.
  • Debt to Equity ratio for FY22 stood at 0.0 as compared to 0.0 in FY21.

Here's the ratio/financial analysis of HIND.COMPOSI for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)18.912.710.914.214.2
Net Profit Margin (%)13.09.76.710.69.3
Debt to Equity Ratio (x)0.00.00.00.00.0

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