INDIAN HUME PIPE 2020-21 Annual Report Analysis

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INDIAN HUME PIPE 2020-21 Annual Report Analysis
Mon, 8 Nov

INDIAN HUME PIPE 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.

INDIAN HUME PIPE Income Statement Analysis

  • Operating income during the year fell 23.5% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 34.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.1% in FY21 as against 11.7% in FY20.
  • Depreciation charges increased by 7.8% and finance costs decreased by 1.1% YoY, respectively.
  • Other income grew by 439.7% YoY.
  • Net profit for the year declined by 42.8% YoY.
  • Net profit margins during the year declined from 4.5% in FY20 to 3.3% in FY21.

INDIAN HUME PIPE Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 16,236 12,414 -23.5%
Other income Rs m 51 273 439.7%
Total Revenues Rs m 16,287 12,687 -22.1%
Gross profit Rs m 1,903 1,253 -34.2%
Depreciation Rs m 185 199 7.8%
Interest Rs m 766 757 -1.1%
Profit before tax Rs m 1,004 570 -43.2%
Tax Rs m 270 150 -44.4%
Profit after tax Rs m 734 420 -42.8%
Gross profit margin % 11.7 10.1
Effective tax rate % 26.9 26.3
Net profit margin % 4.5 3.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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INDIAN HUME PIPE Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 12 billion as compared to Rs 13 billion in FY20, thereby witnessing an decrease of -9.9%.
  • Long-term debt down at Rs 353 million as compared to Rs 437 million during FY20, a fall of 19.2%.
  • Current assets fell 5% and stood at Rs 16 billion, while fixed assets fell 16% and stood at Rs 4 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 20 billion as against Rs 21 billion during FY20, thereby witnessing a fall of 7%.

INDIAN HUME PIPE Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 5,686 6,026 6.0
 
Current Liabilities Rs m 13,394 12,070 -9.9
Long-term Debt Rs m 437 353 -19.2
Total Liabilities Rs m 21,319 19,825 -7.0
 
Current assets Rs m 16,738 15,969 -4.6
Fixed Assets Rs m 4,582 3,857 -15.8
Total Assets Rs m 21,319 19,825 -7.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



INDIAN HUME PIPE Cash Flow Statement Analysis

  • INDIAN HUME PIPE's cash flow from operating activities (CFO) during FY21 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -94 million on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs 39 million from the Rs -365 million net cash flows seen during FY20.

INDIAN HUME PIPE 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 -320 1,848 -
Cash Flow from Investing Activities Rs m -597 -94 -
Cash Flow from Financing Activities Rs m 553 -1,715 -
Net Cash Flow Rs m -365 39 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for INDIAN HUME PIPE

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.7, an decline from the EPS of Rs 15.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 194.0, stands at 18.0 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 0.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 15.2 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 335.1 256.2
TTM Earnings per share Rs 15.2 8.7
Diluted earnings per share Rs 15.2 8.7
Price to Cash Flow x 10.2 15.2
TTM P/E ratio x 18.0 18.0
Price / Book Value ratio x 1.9 1.4
Market Cap Rs m 9,399 9,399
Dividends per share (Unadj.) Rs 2.0 2.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for INDIAN HUME PIPE

  • 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 deteriorated and stood at 1.8x during FY21, from 2.3x 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 declined and down at 7.0% during FY21, from 12.9% 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 declined and down at 20.8% during FY21, from 28.9% 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 declined and down at 5.9% during FY21, from 7.0% 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 1,409 1,627
Interest coverage x 2.3 1.8
Debt to equity ratio x 0.1 0.1
Return on assets % 7.0 5.9
Return on equity % 12.9 7.0
Return on capital employed % 28.9 20.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how INDIAN HUME PIPE has performed over the last 5 years, please visit here.

INDIAN HUME PIPE Share Price Performance

Over the last one year, INDIAN HUME PIPE share price has moved up from Rs 159.2 to Rs 194.0, registering a gain of Rs 34.8 or around 21.9%.

Overall, the S&P BSE SENSEX is up 49.1% over the year.

(To know more, check out historical annual results for INDIAN HUME PIPE and quarterly results for INDIAN HUME PIPE)

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