HSIL LTD 2017-18 Annual Report Analysis

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HSIL LTD 2017-18 Annual Report Analysis
Thu, 20 Dec

HSIL LTD 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 LTD Income Statement Analysis

  • Operating income during the year rose 8.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.1% in FY18 as against 13.8% in FY17.
  • Depreciation charges increased by 2.9% and finance costs increased by 66.5% YoY, respectively.
  • Other income grew by 112.3% YoY.
  • Net profit for the year declined by 26.1% YoY.
  • Net profit margins during the year declined from 4.8% in FY17 to 3.3% in FY18.

HSIL LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 20,748 22,528 8.6%
Other income Rs m 46 97 112.3%
Total Revenues Rs m 20,794 22,625 8.8%
Gross profit Rs m 2,867 2,718 -5.2%
Depreciation Rs m 1,109 1,141 2.9%
Interest Rs m 335 558 66.5%
Profit before tax Rs m 1,469 1,117 -24.0%
Tax Rs m 466 310 -33.5%
Profit after tax Rs m 1,003 741 -26.1%
Gross profit margin % 13.8 12.1
Effective tax rate % 31.7 27.8
Net profit margin % 4.8 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HSIL LTD 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 14% and stood at Rs 19 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 LTD 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 16,548 18,855 13.9
Total Assets Rs m 30,848 34,737 12.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



HSIL LTD Cash Flow Statement Analysis

  • HSIL LTD'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 LTD 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 -9.6%
Net Cash Flow Rs m 1,233 957 -22.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HSIL LTD

  • 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 224.1, stands at 32.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 7.9 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 287.0 311.6
TTM Earnings per share Rs 13.9 10.2
Diluted earnings per share Rs 15.2 11.2
Price to Cash Flow x 7.7 7.9
TTM P/E ratio x 35.0 32.0
Price / Book Value ratio x 1.6 2.2
Market Cap Rs m 16,202 14,802
Dividends per share (Unadj.) Rs 4.0 4.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for HSIL LTD

  • 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 3.0x 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 70 83
Interest coverage x 5.4 3.0
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: Company Reports, Regulatory Filings, Equitymaster



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

HSIL LTD Share Price Performance

Over the last one year, HSIL LTD share price has moved up from Rs 524.8 to Rs 224.1, registering a loss of Rs 300.7 or around 57.3%.

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

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

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