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HIL 2018-19 Annual Report Analysis
Sun, 31 Mar

HIL 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.

HIL Income Statement Analysis

  • Operating income during the year rose 79.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 60.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.5% in FY19 as against 11.8% in FY18.
  • Depreciation charges increased by 43.9% and finance costs increased by 550.5% YoY, respectively.
  • Other income grew by 6.5% YoY.
  • Net profit for the year grew by 25.9% YoY.
  • Net profit margins during the year declined from 6.6% in FY18 to 4.6% in FY19.

HIL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 12,322 22,081 79.2%
Other income Rs m 255 272 6.5%
Total Revenues Rs m 12,577 22,352 77.7%
Gross profit Rs m 1,452 2,323 60.0%
Depreciation Rs m 469 675 43.9%
Interest Rs m 39 252 550.5%
Profit before tax Rs m 1,199 1,668 39.1%
Tax Rs m 392 651 66.4%
Profit after tax Rs m 808 1,017 25.9%
Gross profit margin % 11.8 10.5
Effective tax rate % 32.7 39.0
Net profit margin % 6.6 4.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

HIL Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 7 billion as compared to Rs 3 billion in FY18, thereby witnessing an increase of 97.7%.
  • Long-term debt stood at Rs 5 billion as compared to Rs 665 million during FY18, a growth of 681.0%.
  • Current assets rose 81% and stood at Rs 8 billion, while fixed assets rose 104% and stood at Rs 12 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 20 billion as against Rs 10 billion during FY18, thereby witnessing a growth of 94%.

HIL Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 5,652 6,360 12.5
 
Current Liabilities Rs m 3,362 6,646 97.7
Long-term Debt Rs m 665 5,191 681.0
Total Liabilities Rs m 10,187 19,747 93.8
 
Current assets Rs m 4,460 8,070 80.9
Fixed Assets Rs m 5,727 11,677 103.9
Total Assets Rs m 10,187 19,747 93.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HIL Cash Flow Statement Analysis

  • HIL's cash flow from operating activities (CFO) during FY19 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -3 billion, an improvement of 108.7% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 3 billion, an improvement of 1,412% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 532 million from the Rs 19 million net cash flows seen during FY18.

HIL 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 1,874 1,346 -28.1%
Cash Flow from Investing Activities Rs m -1,652 -3,448 -
Cash Flow from Financing Activities Rs m -203 2,660 -
Net Cash Flow Rs m 19 532 2,741.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 136.1, an improvement from the EPS of Rs 108.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 1,848.9, stands at 13.7 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 0.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.2 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 1,651.7 2,955.9
TTM Earnings per share Rs 108.3 136.1
Diluted earnings per share Rs 107.5 135.3
Price to Cash Flow x 9.5 9.2
TTM P/E ratio x 15.1 13.7
Price / Book Value ratio x 1.7 2.4
Market Cap Rs m 9,843 15,543
Dividends per share (Unadj.) Rs 22.5 25.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HIL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY19, from 1.3x 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 7.6x during FY19, from 32.0x 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 improved and stood at 16.0% during FY19, from 14.3% 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 declined and down at 16.6% during FY19, from 19.6% 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 6.4% during FY19, from 8.3% 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 1.3 1.2
Debtors’ Days Days 295 230
Interest coverage x 32.0 7.6
Debt to equity ratio x 0.1 0.8
Return on assets % 8.3 6.4
Return on equity % 14.3 16.0
Return on capital employed % 19.6 16.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

HIL Share Price Performance

Over the last one year, HIL share price has moved up from Rs 1,618.0 to Rs 1,848.9, registering a gain of Rs 230.9 or around 14.3%.

Overall, the S&P BSE SENSEX is up 16.3% over the year.

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

Annual Report FAQs

What is the current share price of HIL?

HIL currently trades at Rs 2,603.0 per share. You can check out the latest share price performance of HIL here...

What was the revenue of HIL in FY19? How does it compare to earlier years?

The revenues of HIL stood at Rs 22,352 m in FY19, which was up 77.7% compared to Rs 12,577 m reported in FY18.

HIL's revenue has grown from Rs 9,810 m in FY16 to Rs 22,352 m in FY19.

Over the past 4 years, the revenue of HIL has grown at a CAGR of 31.6%.

What was the net profit of HIL in FY19? How does it compare to earlier years?

The net profit of HIL stood at Rs 1,017 m in FY19, which was up 25.9% compared to Rs 808 m reported in FY18.

This compares to a net profit of Rs 546 m in FY17 and a net profit of Rs 399 m in FY16.

Over the past 4 years, HIL net profit has grown at a CAGR of 36.5%.

What does the cash flow statement of HIL 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 HIL reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 1,346 m as compared to Rs 1,874 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -3,448 m as compared to Rs -1,652 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 2,660 m as compared to Rs -203 m in FY18.

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

(Rs m)FY16FY17FY18FY19
From Operations3861,5061,8741,346
From Investments-523-355-1,652-3,448
From Financial Activity119-1,090-2032,660
Net Cashflow-196119532

What does the Key Ratio analysis of HIL 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 HIL reveals:

  • Operating profit margins witnessed a fall and stood at 10.5% in FY19 as against 11.8% in FY18.
  • Net profit margins declined from 6.6% in FY18 to 4.6% in FY19.
  • Debt to Equity ratio for FY19 stood at 0.8 as compared to 0.1 in FY18.

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

 FY16FY17FY18FY19
Operating Profit Margin (%)9.89.811.810.5
Net Profit Margin (%)4.15.56.64.6
Debt to Equity Ratio (x)0.20.10.10.8

Read: Latest Annual Report Analysis of HIL

 

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