Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  


HSIL 2017-18 Annual Report Analysis
Sat, 31 Mar

HSIL 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.

HSIL Income Statement Analysis

  • Operating income during the year rose 15.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 7.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.0% in FY18 as against 14.9% in FY17.
  • Depreciation charges increased by 2.9% and finance costs increased by 66.5% YoY, respectively.
  • Other income grew by 112.4% YoY.
  • Net profit for the year declined by 26.1% YoY.
  • Net profit margins during the year declined from 5.2% in FY17 to 3.3% in FY18.

HSIL Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 19,199 22,178 15.5%
Other income Rs m 46 97 112.4%
Total Revenues Rs m 19,244 22,275 15.7%
Gross profit Rs m 2,867 2,653 -7.5%
Depreciation Rs m 1,109 1,141 2.9%
Interest Rs m 335 558 66.5%
Profit before tax Rs m 1,469 1,051 -28.5%
Tax Rs m 466 310 -33.5%
Profit after tax Rs m 1,003 741 -26.1%
Gross profit margin % 14.9 12.0
Effective tax rate % 31.7 29.5
Net profit margin % 5.2 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

HSIL Balance Sheet Analysis

  • The company's current liabilities during FY18 stood at Rs 12 billion as compared to Rs 10 billion in FY17, thereby witnessing an increase of 13.4%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 3 billion during FY17, a growth of 64.8%.
  • Current assets rose 18% and stood at Rs 14 billion, while fixed assets rose 9% and stood at Rs 20 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 35 billion as against Rs 31 billion during FY17, thereby witnessing a growth of 13%.

HSIL Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 14,465 14,875 2.8
 
Current Liabilities Rs m 10,462 11,869 13.4
Long-term Debt Rs m 3,173 5,230 64.8
Total Liabilities Rs m 30,848 34,737 12.6
 
Current assets Rs m 12,069 14,291 18.4
Fixed Assets Rs m 18,779 20,445 8.9
Total Assets Rs m 30,848 34,737 12.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HSIL Cash Flow Statement Analysis

  • HSIL's cash flow from operating activities (CFO) during FY18 stood at Rs 548 million on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs -2 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs 2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs 957 million from the Rs 1 billion net cash flows seen during FY17.

HSIL 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 2,042 548 -73.2%
Cash Flow from Investing Activities Rs m -3,286 -1,831 -
Cash Flow from Financing Activities Rs m 2,476 2,240 -9.5%
Net Cash Flow Rs m 1,232 957 -22.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HSIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 13.9 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 371.2, stands at 32.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.2 times.
  • The company's price to cash flow (P/CF) ratio stood at 17.1 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 265.5 306.7
TTM Earnings per share Rs 13.9 10.2
Diluted earnings per share Rs 15.5 11.5
Price to Cash Flow x 10.7 17.1
TTM P/E ratio x 19.7 32.1
Price / Book Value ratio x 1.6 2.2
Market Cap Rs m 22,770 32,185
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HSIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.2x during FY18, from 1.2x 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 2.9x during FY18, from 5.4x 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 declined and down at 5.0% during FY18, from 6.9% 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 declined and down at 8.0% during FY18, from 10.2% 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 declined and down at 3.7% during FY18, from 4.3% 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 1.2 1.2
Debtors’ Days Days 756 846
Interest coverage x 5.4 2.9
Debt to equity ratio x 0.2 0.4
Return on assets % 4.3 3.7
Return on equity % 6.9 5.0
Return on capital employed % 10.2 8.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HSIL Share Price Performance

Over the last one year, HSIL share price has moved up from Rs 350.5 to Rs 371.2, registering a gain of Rs 20.8 or around 5.9%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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

Annual Report FAQs

What is the current share price of HSIL?

HSIL currently trades at Rs 727.0 per share. You can check out the latest share price performance of HSIL here...

What was the revenue of HSIL in FY18? How does it compare to earlier years?

The revenues of HSIL stood at Rs 22,275 m in FY18, which was up 15.7% compared to Rs 19,244 m reported in FY17.

HSIL's revenue has grown from Rs 18,401 m in FY15 to Rs 22,275 m in FY18.

Over the past 4 years, the revenue of HSIL has grown at a CAGR of 6.6%.

What was the net profit of HSIL in FY18? How does it compare to earlier years?

The net profit of HSIL stood at Rs 741 m in FY18, which was down -26.1% compared to Rs 1,003 m reported in FY17.

This compares to a net profit of Rs 1,085 m in FY16 and a net profit of Rs 854 m in FY15.

Over the past 4 years, HSIL net profit has grown at a CAGR of -4.6%.

What does the cash flow statement of HSIL 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 HSIL reveals:

  • Cash flow from operations decreased in FY18 and stood at Rs 548 m as compared to Rs 2,042 m in FY17.
  • Cash flow from investments increased in FY18 and stood at Rs -1,831 m as compared to Rs -3,286 m in FY17.
  • Cash flow from financial activity decreased in FY18 and stood at Rs 2,240 m as compared to Rs 2,476 m in FY17.

Here's the cash flow statement of HSIL for the past 4 years.

(Rs m)FY15FY16FY17FY18
From Operations2,6443,1062,042548
From Investments-924-664-3,286-1,831
From Financial Activity-2,075-2,4702,4762,240
Net Cashflow-354-281,232957

What does the Key Ratio analysis of HSIL 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 HSIL reveals:

  • Operating profit margins witnessed a fall and stood at 12.0% in FY18 as against 14.9% in FY17.
  • Net profit margins declined from 5.2% in FY17 to 3.3% in FY18.
  • Debt to Equity ratio for FY18 stood at 0.4 as compared to 0.2 in FY17.

Here's the ratio/financial analysis of HSIL for the past 4 years.

 FY15FY16FY17FY18
Operating Profit Margin (%)18.117.214.912.0
Net Profit Margin (%)4.75.95.23.3
Debt to Equity Ratio (x)0.30.20.20.4

Read: Latest Annual Report Analysis of AGI GREENPAC

Equitymaster requests your view! Post a comment on "HSIL 2017-18 Annual Report Analysis". Click here!