HSIL LTD 2018-19 Annual Report Analysis

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HSIL LTD 2018-19 Annual Report Analysis
Mon, 23 Sep

HSIL LTD 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.

HSIL LTD Income Statement Analysis

  • Operating income during the year rose 20.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 16.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.6% in FY19 as against 12.1% in FY18.
  • Depreciation charges increased by 32.4% and finance costs increased by 56.9% YoY, respectively.
  • Other income grew by 208.7% YoY.
  • Net profit for the year declined by 5.5% YoY.
  • Net profit margins during the year declined from 3.3% in FY18 to 2.6% in FY19.

HSIL LTD Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 22,528 27,124 20.4%
Other income Rs m 97 299 208.7%
Total Revenues Rs m 22,625 27,423 21.2%
Gross profit Rs m 2,718 3,160 16.2%
Depreciation Rs m 1,141 1,510 32.4%
Interest Rs m 558 875 56.9%
Profit before tax Rs m 1,117 1,074 -3.9%
Tax Rs m 310 372 19.8%
Profit after tax Rs m 741 700 -5.5%
Gross profit margin % 12.1 11.6
Effective tax rate % 27.8 34.6
Net profit margin % 3.3 2.6
* 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 FY19 down at Rs 10 billion as compared to Rs 12 billion in FY18, thereby witnessing an decrease of -14.3%.
  • Long-term debt stood at Rs 8 billion as compared to Rs 5 billion during FY18, a growth of 44.0%.
  • Current assets fell 5% and stood at Rs 14 billion, while fixed assets rose 10% and stood at Rs 21 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 36 billion as against Rs 35 billion during FY18, thereby witnessing a growth of 2%.

HSIL LTD Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 14,875 15,128 1.7
 
Current Liabilities Rs m 11,869 10,171 -14.3
Long-term Debt Rs m 5,230 7,532 44.0
Total Liabilities Rs m 34,737 35,604 2.5
 
Current assets Rs m 14,291 13,537 -5.3
Fixed Assets Rs m 18,907 20,711 9.5
Total Assets Rs m 34,737 35,604 2.5
* 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 FY19 stood at Rs 3 billion, an improvement of 500.3% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an improvement of 76.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -2 billion from the Rs 957 million net cash flows seen during FY18.

HSIL LTD 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 548 3,290 500.3%
Cash Flow from Investing Activities Rs m -1,831 -3,222 -
Cash Flow from Financing Activities Rs m 2,240 -1,852 -
Net Cash Flow Rs m 957 -1,784 -
* 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 9.7, an decline from the EPS of Rs 10.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 47.9, stands at 3.8 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 0.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 1.4 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 311.6 375.2
TTM Earnings per share Rs 10.2 9.7
Diluted earnings per share Rs 11.2 10.6
Price to Cash Flow x 1.8 1.4
TTM P/E ratio x 4.2 3.8
Price / Book Value ratio x 2.2 1.4
Market Cap Rs m 3,463 3,164
Dividends per share (Unadj.) Rs 4.0 3.0
* 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 1.3x during FY19, from 1.2x 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 deteriorated and stood at 2.2x during FY19, from 3.0x 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 declined and down at 4.6% during FY19, from 5.0% 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 8.6% during FY19, from 8.0% 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 improved and stood at 4.4% during FY19, from 3.7% 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 1.2 1.3
Debtors’ Days Days 83 79
Interest coverage x 3.0 2.2
Debt to equity ratio x 0.4 0.5
Return on assets % 3.7 4.4
Return on equity % 5.0 4.6
Return on capital employed % 8.0 8.6
* 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 down from Rs 82.9 to Rs 47.9, registering a loss of Rs 35.0 or around 42.2%.

Overall, the S&P BSE SENSEX is up 5.3% over the year.

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

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For the quarter ended March 2020, HSIL LTD has posted a net profit of Rs 34 m (down 91.1% YoY). Sales on the other hand came in at Rs 5 bn (down 43.0% YoY). Read on for a complete analysis of HSIL LTD's quarterly results.

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