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HINDUSTAN COPPER 2017-18 Annual Report Analysis

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HINDUSTAN COPPER 2017-18 Annual Report Analysis
Thu, 20 Dec

HINDUSTAN COPPER has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

HINDUSTAN COPPER Income Statement Analysis

  • Operating income during the year rose 31.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 28.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.3% in FY18 as against 16.6% in FY17.
  • Depreciation charges increased by 16.0% and finance costs increased by 136.3% YoY, respectively.
  • Other income declined by 0.5% YoY.
  • Net profit for the year grew by 28.4% YoY.
  • Net profit margins during the year declined from 4.6% in FY17 to 4.6% in FY18.

HINDUSTAN COPPER Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 13,108 17,197 31.2%
Other income Rs m 275 273 -0.5%
Total Revenues Rs m 13,382 17,470 30.5%
Gross profit Rs m 2,180 2,807 28.7%
Depreciation Rs m 1,419 1,647 16.0%
Interest Rs m 90 213 136.3%
Profit before tax Rs m 945 1,220 29.1%
Tax Rs m 324 422 30.3%
Profit after tax Rs m 622 798 28.4%
Gross profit margin % 16.6 16.3
Effective tax rate % 34.2 34.6
Net profit margin % 4.6 4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HINDUSTAN COPPER Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 11 billion as compared to Rs 14 billion in FY17, thereby witnessing an decrease of -21.8%.
  • Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY17, a fall of 25.4%.
  • Current assets fell 36% and stood at Rs 13 billion, while fixed assets rose 57% and stood at Rs 10 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 29 billion as against Rs 25 billion during FY17, thereby witnessing a growth of 15%.

HINDUSTAN COPPER Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 14,670 15,273 4.1
 
Current Liabilities Rs m 14,111 11,040 -21.8
Long-term Debt Rs m 2,050 1,529 -25.4
Total Liabilities Rs m 25,097 28,753 14.6
 
Current assets Rs m 19,742 12,550 -36.4
Fixed Assets Rs m 6,329 9,915 56.7
Total Assets Rs m 25,097 28,753 14.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HINDUSTAN COPPER Cash Flow Statement Analysis

  • HINDUSTAN COPPER's cash flow from operating activities (CFO) during FY18 stood at Rs 4 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -6 billion, an improvement of 116.3% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -961 million on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -3 billion from the Rs -5 billion net cash flows seen during FY17.

HINDUSTAN COPPER Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m -2,596 3,718 -
Cash Flow from Investing Activities Rs m -2,578 -5,575 -
Cash Flow from Financing Activities Rs m -84 -961 -
Net Cash Flow Rs m -5,257 -2,818 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HINDUSTAN COPPER

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.9, an improvement from the EPS of Rs 0.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 50.5, stands at 41.9 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 4.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 19.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 14.2 18.6
TTM Earnings per share Rs 0.7 0.9
Diluted earnings per share Rs 0.7 0.9
Price to Cash Flow x 22.9 19.1
TTM P/E ratio x 41.9 41.9
Price / Book Value ratio x 3.6 5.0
Market Cap Rs m 46,724 46,724
Dividends per share (Unadj.) Rs 0.2 0.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HINDUSTAN COPPER

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY18, from 1.4x during FY17. 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 6.7x during FY18, from 11.5x during FY17. 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 5.2% during FY18, from 4.2% during FY18. 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 8.5% during FY18, from 6.2% during FY17. 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 3.5% during FY18, from 2.8% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 1.4 1.1
Debtors’ Days Days 46 17
Interest coverage x 11.5 6.7
Debt to equity ratio x 0.1 0.1
Return on assets % 2.8 3.5
Return on equity % 4.2 5.2
Return on capital employed % 6.2 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how HINDUSTAN COPPER has performed over the last 5 years, please visit here.

HINDUSTAN COPPER Share Price Performance

Over the last one year, HINDUSTAN COPPER share price has moved up from Rs 91.4 to Rs 50.5, registering a loss of Rs 40.9 or around 44.7%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 11,868.1 (down 1.3%). Over the last one year it has moved down from 14,440.6 to 11,868.1, a loss of 2,572 points (down 17.8%).

Overall, the S&P BSE SENSEX is up 7.4% over the year.

(To know more, check out historical annual results for HINDUSTAN COPPER and quarterly results for HINDUSTAN COPPER)

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Related Views on News

HINDUSTAN COPPER Announces Quarterly Results (3QFY19); Net Profit Up 82.4% (Quarterly Result Update)

Feb 15, 2019 | Updated on Feb 15, 2019

For the quarter ended December 2018, HINDUSTAN COPPER has posted a net profit of Rs 346 m (up 82.4% YoY). Sales on the other hand came in at Rs 5 bn (down 3.4% YoY). Read on for a complete analysis of HINDUSTAN COPPER's quarterly results.

HINDUSTAN COPPER Announces Quarterly Results (2QFY19); Net Profit Up 23.4% (Quarterly Result Update)

Nov 14, 2018 | Updated on Nov 14, 2018

For the quarter ended September 2018, HINDUSTAN COPPER has posted a net profit of Rs 353 m (up 23.4% YoY). Sales on the other hand came in at Rs 5 bn (down 9.6% YoY). Read on for a complete analysis of HINDUSTAN COPPER's quarterly results.

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