HIL 2018-19 Annual Report Analysis

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HIL 2018-19 Annual Report Analysis
Mon, 23 Sep

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 72.7% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 57.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY19 as against 11.6% in FY18.
  • Depreciation charges increased by 46.2% and finance costs increased by 550.1% YoY, respectively.
  • Other income grew by 18.8% YoY.
  • Net profit for the year grew by 25.6% YoY.
  • Net profit margins during the year declined from 6.2% in FY18 to 4.5% in FY19.

HIL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 12,786 22,080 72.7%
Other income Rs m 225 268 18.8%
Total Revenues Rs m 13,011 22,348 71.8%
Gross profit Rs m 1,482 2,335 57.6%
Depreciation Rs m 469 686 46.2%
Interest Rs m 39 252 550.1%
Profit before tax Rs m 1,199 1,665 38.9%
Tax Rs m 392 651 66.4%
Profit after tax Rs m 808 1,014 25.6%
Gross profit margin % 11.6 10.6
Effective tax rate % 32.7 39.1
Net profit margin % 6.2 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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 106% and stood at Rs 11 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 5,661 6,372 12.6
 
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 81.0
Fixed Assets Rs m 5,410 11,135 105.8
Total Assets Rs m 10,187 19,747 93.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 2,746.0%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for HIL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 135.7, 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 1,280.0, stands at 11.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.6 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 1,714.0 2,955.9
TTM Earnings per share Rs 108.3 135.7
Diluted earnings per share Rs 108.1 135.7
Price to Cash Flow x 7.5 5.6
TTM P/E ratio x 11.6 11.6
Price / Book Value ratio x 1.7 2.4
Market Cap Rs m 9,549 9,562
Dividends per share (Unadj.) Rs 22.5 25.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 15.9% 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 28 23
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 15.9
Return on capital employed % 19.6 16.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 down from Rs 2,348.1 to Rs 1,280.0, registering a loss of Rs 1,068.1 or around 45.5%.

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

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

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Aug 10, 2020 | Updated on Aug 10, 2020

For the quarter ended June 2020, HIL has posted a net profit of Rs 380 m (up 14.8% YoY). Sales on the other hand came in at Rs 4 bn (down 17.8% YoY). Read on for a complete analysis of HIL's quarterly results.

HIL Announces Quarterly Results (3QFY20); Net Profit Down 30.2% (Quarterly Result Update)

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For the quarter ended December 2019, HIL has posted a net profit of Rs 49 m (down 30.2% YoY). Sales on the other hand came in at Rs 3 bn (down 9.3% YoY). Read on for a complete analysis of HIL's quarterly results.

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