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HITECH PLAST 2022-23 Annual Report Analysis

Tue, 20 Jun

HITECH PLAST has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

HITECH PLAST Income Statement Analysis

• Operating income during the year fell 5.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 21.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.4% in FY23 as against 16.2% in FY22.
• Depreciation charges decreased by 4.7% and finance costs decreased by 14.7% YoY, respectively.
• Other income grew by 441.1% YoY.
• Net profit for the year declined by 24.2% YoY.
• Net profit margins during the year declined from 6.4% in FY22 to 5.1% in FY23.

HITECH PLAST Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,885	5,587	-5.1%
Other income	Rs m	9	49	441.1%
Total Revenues	Rs m	5,894	5,636	-4.4%
Gross profit	Rs m	956	748	-21.8%
Depreciation	Rs m	300	286	-4.7%
Interest	Rs m	161	138	-14.7%
Profit before tax	Rs m	504	374	-25.9%
Tax	Rs m	130	90	-30.5%
Profit after tax	Rs m	374	283	-24.2%
Gross profit margin	%	16.2	13.4
Effective tax rate	%	25.8	24.2
Net profit margin	%	6.4	5.1

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HITECH PLAST Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 927 million as compared to Rs 1 billion in FY22, thereby witnessing an decrease of -15.4%.
• Long-term debt down at Rs 150 million as compared to Rs 378 million during FY22, a fall of 60.2%.
• Current assets fell 4% and stood at Rs 1 billion, while fixed assets rose 0% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a fall of 1%.

HITECH PLAST Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,170	2,432	12.1
Current Liabilities	Rs m	1,095	927	-15.4
Long-term Debt	Rs m	378	150	-60.2
Total Liabilities	Rs m	4,292	4,250	-1.0
Current assets	Rs m	1,108	1,058	-4.5
Fixed Assets	Rs m	3,171	3,187	0.5
Total Assets	Rs m	4,292	4,250	-1.0

HITECH PLAST Cash Flow Statement Analysis

• HITECH PLAST's cash flow from operating activities (CFO) during FY23 stood at Rs 693 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -159 million, an improvement of 169.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -543 million, an improvement of 16% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -9 million from the Rs 17 million net cash flows seen during FY22.

HITECH PLAST Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	727	693	-4.6%
Cash Flow from Investing Activities	Rs m	-59	-159	-
Cash Flow from Financing Activities	Rs m	-651	-543	-
Net Cash Flow	Rs m	17	-9	-

Current Valuations for HITECH PLAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.5, an decline from the EPS of Rs 21.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 225.5, stands at 13.7 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	342.5	325.2
TTM Earnings per share	Rs	21.8	16.5
Diluted earnings per share	Rs	21.8	16.5
Price to Cash Flow	x	5.8	7.4
TTM P/E ratio	x	10.5	13.7
Price / Book Value ratio	x	1.8	1.7
Market Cap	Rs m	3,883	4,220
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for HITECH PLAST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x during FY22. 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 3.7x during FY23, from 4.1x during FY22. 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 11.6% during FY23, from 17.2% during FY23. 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 19.8% during FY23, from 26.1% during FY22. 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 9.9% during FY23, from 12.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.1
Debtors’ Days	Days	267	239
Interest coverage	x	4.1	3.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	12.5	9.9
Return on equity	%	17.2	11.6
Return on capital employed	%	26.1	19.8

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

HITECH PLAST Share Price Performance

Over the last one year, HITECH PLAST share price has moved up from Rs 215.5 to Rs 225.5, registering a gain of Rs 10.1 or around 4.7%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

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