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HIL 2020-21 Annual Report Analysis
Wed, 31 Mar

HIL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HIL Income Statement Analysis

  • Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 65.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.4% in FY21 as against 9.5% in FY20.
  • Depreciation charges increased by 12.2% and finance costs decreased by 27.7% YoY, respectively.
  • Other income grew by 228.9% YoY.
  • Net profit for the year grew by 145.6% YoY.
  • Net profit margins during the year grew from 4.1% in FY20 to 8.5% in FY21.

HIL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 25,942 30,481 17.5%
Other income Rs m 246 810 228.9%
Total Revenues Rs m 26,188 31,291 19.5%
Gross profit Rs m 2,459 4,076 65.8%
Depreciation Rs m 971 1,090 12.2%
Interest Rs m 385 278 -27.7%
Profit before tax Rs m 1,349 3,518 160.7%
Tax Rs m 296 932 214.7%
Profit after tax Rs m 1,053 2,586 145.6%
Gross profit margin % 9.5 13.4
Effective tax rate % 22.0 26.5
Net profit margin % 4.1 8.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

HIL Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 7 billion as compared to Rs 8 billion in FY20, thereby witnessing an decrease of -13.6%.
  • Long-term debt down at Rs 3 billion as compared to Rs 4 billion during FY20, a fall of 41.3%.
  • Current assets fell 6% and stood at Rs 9 billion, while fixed assets rose 1% and stood at Rs 12 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 21 billion as against Rs 22 billion during FY20, thereby witnessing a fall of 2%.

HIL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 7,406 9,925 34.0
 
Current Liabilities Rs m 8,052 6,959 -13.6
Long-term Debt Rs m 4,420 2,594 -41.3
Total Liabilities Rs m 21,544 21,135 -1.9
 
Current assets Rs m 9,405 8,875 -5.6
Fixed Assets Rs m 12,139 12,260 1.0
Total Assets Rs m 21,544 21,135 -1.9
* 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 FY21 stood at Rs 5 billion, an improvement of 257.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -344 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 407 million from the Rs 221 million net cash flows seen during FY20.

HIL Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 1,302 4,660 257.9%
Cash Flow from Investing Activities Rs m -1,196 -344 -
Cash Flow from Financing Activities Rs m 75 -3,898 -
Net Cash Flow Rs m 221 407 84.6%
* 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 345.3, an improvement from the EPS of Rs 140.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 3,046.3, stands at 10.7 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 3,468.1 4,069.5
TTM Earnings per share Rs 140.8 345.3
Diluted earnings per share Rs 140.2 344.2
Price to Cash Flow x 2.4 3.9
TTM P/E ratio x 4.6 10.7
Price / Book Value ratio x 1.3 1.4
Market Cap Rs m 9,449 14,378
Dividends per share (Unadj.) Rs 20.0 40.0
* 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 improved and stood at 1.3x during FY21, from 1.2x during FY20. 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 improved and stood at 13.6x during FY21, from 4.5x during FY20. 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 26.1% during FY21, from 14.2% during FY21. 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 30.3% during FY21, from 14.7% during FY20. 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 13.6% during FY21, from 6.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 1.2 1.3
Debtors’ Days Days 167 116
Interest coverage x 4.5 13.6
Debt to equity ratio x 0.6 0.3
Return on assets % 6.7 13.6
Return on equity % 14.2 26.1
Return on capital employed % 14.7 30.3
* 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 634.9 to Rs 3,046.3, registering a gain of Rs 2,411.5 or around 379.8%.

Overall, the S&P BSE SENSEX is up 74.1% 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 FY21? How does it compare to earlier years?

The revenues of HIL stood at Rs 31,291 m in FY21, which was up 19.5% compared to Rs 26,188 m reported in FY20.

HIL's revenue has grown from Rs 10,154 m in FY17 to Rs 31,291 m in FY21.

Over the past 5 years, the revenue of HIL has grown at a CAGR of 32.5%.

What was the net profit of HIL in FY21? How does it compare to earlier years?

The net profit of HIL stood at Rs 2,586 m in FY21, which was up 145.6% compared to Rs 1,053 m reported in FY20.

This compares to a net profit of Rs 1,017 m in FY19 and a net profit of Rs 808 m in FY18.

Over the past 5 years, HIL net profit has grown at a CAGR of 47.5%.

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 increased in FY21 and stood at Rs 4,660 m as compared to Rs 1,302 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -344 m as compared to Rs -1,196 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -3,898 m as compared to Rs 75 m in FY20.

Here's the cash flow statement of HIL for the past 5 years.

(Rs m)FY17FY18FY19FY20FY21
From Operations1,5061,8741,3461,3024,660
From Investments-355-1,652-3,448-1,196-344
From Financial Activity-1,090-2032,66075-3,898
Net Cashflow6119532221407

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 down at 13.4% in FY21 as against 9.5% in FY20.
  • Net profit margins grew from 4.1% in FY20 to 8.5% in FY21.
  • Debt to Equity ratio for FY21 stood at 0.3 as compared to 0.6 in FY20.

Here's the ratio/financial analysis of HIL for the past 5 years.

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)9.811.810.59.513.4
Net Profit Margin (%)5.56.64.64.18.5
Debt to Equity Ratio (x)0.10.10.80.60.3

Read: Latest Annual Report Analysis of HIL

 

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