HINDUSTAN MOTORS 2018-19 Annual Report Analysis

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HINDUSTAN MOTORS 2018-19 Annual Report Analysis
Mon, 16 Sep

HINDUSTAN MOTORS has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

HINDUSTAN MOTORS Income Statement Analysis

  • Operating income during the year rose 0.0% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 61.9% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1124.1% in FY19 as against 0.0% in FY18.
  • Depreciation charges decreased by 16.1% and finance costs decreased by 81.1% YoY, respectively.
  • Other income grew by 278.3% YoY.
  • Net profit for the year declined by 52.8% YoY.
  • Net profit margins during the year declined from 602.5% in FY18 to 0.0% in FY19.

HINDUSTAN MOTORS Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 0 5 0.0%
Other income Rs m 94 355 278.3%
Total Revenues Rs m 94 361 284.0%
Gross profit Rs m -160 -61 -61.9%
Depreciation Rs m 14 12 -16.1%
Interest Rs m 87 17 -81.1%
Profit before tax Rs m -167 266 -259.3%
Tax Rs m 57 -1 -102.0%
Profit after tax Rs m 566 267 -52.8%
Gross profit margin % 0.0 -1,124.1
Effective tax rate % -34.1 -0.4
Net profit margin % 602.5 74.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HINDUSTAN MOTORS Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 579 million as compared to Rs 1 billion in FY18, thereby witnessing an decrease of -44.4%.
  • Current assets fell 68% and stood at Rs 81 million, while fixed assets fell 11% and stood at Rs 214 million in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 304 million as against Rs 504 million during FY18, thereby witnessing a fall of 40%.

HINDUSTAN MOTORS Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m -567 -303 -46.6
 
Current Liabilities Rs m 1,041 579 -44.4
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 504 304 -39.7
 
Current assets Rs m 254 81 -68.3
Fixed Assets Rs m 240 214 -11.0
Total Assets Rs m 504 304 -39.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HINDUSTAN MOTORS Cash Flow Statement Analysis

  • HINDUSTAN MOTORS's cash flow from operating activities (CFO) during FY19 stood at Rs -140 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 23 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -22 million, an improvement of 93% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -139 million from the Rs 165 million net cash flows seen during FY18.

HINDUSTAN MOTORS Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m -335 -140 -
Cash Flow from Investing Activities Rs m 792 23 -97.1%
Cash Flow from Financing Activities Rs m -292 -22 -
Net Cash Flow Rs m 165 -139 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HINDUSTAN MOTORS

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 2.7 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 7.2, stands at 5.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at -5.7 times, while the price to sales ratio stands at 318.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 0.0 0.0
TTM Earnings per share Rs 2.7 1.3
Diluted earnings per share Rs 2.7 1.3
Price to Cash Flow x 2.6 5.4
TTM P/E ratio x 5.8 5.8
Price / Book Value ratio x -4.0 -5.7
Market Cap Rs m 1,500 1,501
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HINDUSTAN MOTORS

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.1x during FY19, from 0.2x during FY18. 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 17.1x during FY19, from -0.9x during FY18. 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 -88.2% during FY19, from -99.8% during FY19. 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 -93.3% during FY19, from -125.2% during FY18. 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 93.3% during FY19, from 129.5% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.2 0.1
Debtors’ Days Days 0 34
Interest coverage x -0.9 17.1
Debt to equity ratio x 0.0 0.0
Return on assets % 129.5 93.3
Return on equity % -99.8 -88.2
Return on capital employed % -125.2 -93.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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

HINDUSTAN MOTORS Share Price Performance

Over the last one year, HINDUSTAN MOTORS share price has moved down from Rs 9.0 to Rs 7.2, registering a loss of Rs 1.8 or around 20.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 16,463.2 (down 0.5%). Over the last one year it has moved down from 24,246.9 to 16,463.2, a loss of 7,784 points (down 32.1%).

Overall, the S&P BSE SENSEX is down 2.4% over the year.

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

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