HINDUSTAN COPPER 2020-21 Annual Report Analysis

Wed, 31 Mar

HINDUSTAN COPPER 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.

HINDUSTAN COPPER Income Statement Analysis

• Operating income during the year rose 114.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 132.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.9% in FY21 as against 59.5% in FY20.
• Depreciation charges increased by 14.3% and finance costs increased by 2.8% YoY, respectively.
• Other income declined by 38.8% YoY.
• Net profit for the year declined by 119.4% YoY.
• Net profit margins during the year grew from 68.4% in FY20 to 6.2% in FY21.

HINDUSTAN COPPER Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	8,319	17,868	114.8%
Other income	Rs m	572	350	-38.8%
Total Revenues	Rs m	8,890	18,218	104.9%
Gross profit	Rs m	-4,949	1,594	-132.2%
Depreciation	Rs m	380	434	14.3%
Interest	Rs m	622	639	2.8%
Profit before tax	Rs m	-5,379	871	-116.2%
Tax	Rs m	313	-231	-173.7%
Profit after tax	Rs m	-5,692	1,102	-119.4%
Gross profit margin	%	-59.5	8.9
Effective tax rate	%	-5.8	-26.5
Net profit margin	%	-68.4	6.2

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HINDUSTAN COPPER Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 9 billion as compared to Rs 14 billion in FY20, thereby witnessing an decrease of -36.5%.
• Long-term debt stood at Rs 8 billion as compared to Rs 6 billion during FY20, a growth of 21.0%.
• Current assets fell 22% and stood at Rs 8 billion, while fixed assets fell 4% and stood at Rs 15 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 27 billion as against Rs 31 billion during FY20, thereby witnessing a fall of 12%.

HINDUSTAN COPPER Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	9,600	10,892	13.5
Current Liabilities	Rs m	14,475	9,195	-36.5
Long-term Debt	Rs m	6,362	7,699	21.0
Total Liabilities	Rs m	30,649	26,843	-12.4
Current assets	Rs m	10,369	8,098	-21.9
Fixed Assets	Rs m	15,926	15,249	-4.3
Total Assets	Rs m	30,649	26,843	-12.4

HINDUSTAN COPPER Cash Flow Statement Analysis

• HINDUSTAN COPPER's cash flow from operating activities (CFO) during FY21 stood at Rs 8 billion, an improvement of 867.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 1 billion, an improvement of 217% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 6 billion from the Rs -3 billion net cash flows seen during FY20.

HINDUSTAN COPPER 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	860	8,317	867.3%
Cash Flow from Investing Activities	Rs m	-4,298	-3,636	-
Cash Flow from Financing Activities	Rs m	420	1,331	216.9%
Net Cash Flow	Rs m	-3,019	6,011	-

Current Valuations for HINDUSTAN COPPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an improvement from the EPS of Rs -6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 119.5, stands at 104.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.6 times, while the price to sales ratio stands at 6.2 times.
• The company's price to cash flow (P/CF) ratio stood at 56.0 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	9.0	19.3
TTM Earnings per share	Rs	-6.2	1.2
Diluted earnings per share	Rs	-5.9	1.1
Price to Cash Flow	x	-3.9	56.0
TTM P/E ratio	x	-3.6	104.6
Price / Book Value ratio	x	3.4	7.9
Market Cap	Rs m	32,313	85,999
Dividends per share (Unadj.)	Rs	0.0	0.4

Ratio Analysis for HINDUSTAN COPPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY21, from 0.7x 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 improved and stood at 2.4x during FY21, from -7.6x 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 improved and stood at 10.1% during FY21, from -59.3% 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 improved and stood at 8.1% during FY21, from -29.8% 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 improved and stood at 6.5% during FY21, from -16.5% 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	0.7	0.9
Debtors’ Days	Days	364	343
Interest coverage	x	-7.6	2.4
Debt to equity ratio	x	0.7	0.7
Return on assets	%	-16.5	6.5
Return on equity	%	-59.3	10.1
Return on capital employed	%	-29.8	8.1

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 21.3 to Rs 119.5, registering a gain of Rs 98.2 or around 461.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 14,350.6 (up 0.4%). Over the last one year it has moved up from 5,713.3 to 14,350.6, a gain of 8,637 points (up 151.2%).

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

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

Read: Latest Annual Report Analysis of HINDUSTAN COPPER