INDIAN HUME PIPE 2021-22 Annual Report Analysis

Tue, 12 Jul

INDIAN HUME PIPE has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

INDIAN HUME PIPE Income Statement Analysis

• Operating income during the year rose 22.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.3% in FY22 as against 10.1% in FY21.
• Depreciation charges decreased by 12.4% and finance costs decreased by 12.6% YoY, respectively.
• Other income declined by 83.0% YoY.
• Net profit for the year grew by 37.6% YoY.
• Net profit margins during the year grew from 3.4% in FY21 to 3.8% in FY22.

INDIAN HUME PIPE Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	12,414	15,204	22.5%
Other income	Rs m	277	47	-83.0%
Total Revenues	Rs m	12,691	15,251	20.2%
Gross profit	Rs m	1,249	1,568	25.6%
Depreciation	Rs m	199	174	-12.4%
Interest	Rs m	757	661	-12.6%
Profit before tax	Rs m	570	780	36.9%
Tax	Rs m	150	202	34.8%
Profit after tax	Rs m	420	578	37.6%
Gross profit margin	%	10.1	10.3
Effective tax rate	%	26.3	25.9
Net profit margin	%	3.4	3.8

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INDIAN HUME PIPE Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 12 billion as compared to Rs 12 billion in FY21, thereby witnessing an increase of 3.8%.
• Long-term debt down at Rs 232 million as compared to Rs 353 million during FY21, a fall of 34.3%.
• Current assets rose 4% and stood at Rs 17 billion, while fixed assets rose 8% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 21 billion as against Rs 20 billion during FY21, thereby witnessing a growth of 5%.

INDIAN HUME PIPE Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,026	6,502	7.9
Current Liabilities	Rs m	11,982	12,432	3.8
Long-term Debt	Rs m	353	232	-34.3
Total Liabilities	Rs m	19,738	20,730	5.0
Current assets	Rs m	15,881	16,554	4.2
Fixed Assets	Rs m	3,857	4,176	8.3
Total Assets	Rs m	19,738	20,730	5.0

INDIAN HUME PIPE Cash Flow Statement Analysis

• INDIAN HUME PIPE's cash flow from operating activities (CFO) during FY22 stood at Rs 560 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -148 million, an improvement of 58.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -926 million, an improvement of 46% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -514 million from the Rs 39 million net cash flows seen during FY21.

INDIAN HUME PIPE Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,848	560	-69.7%
Cash Flow from Investing Activities	Rs m	-94	-148	-
Cash Flow from Financing Activities	Rs m	-1,715	-926	-
Net Cash Flow	Rs m	39	-514	-

Current Valuations for INDIAN HUME PIPE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.9, an improvement from the EPS of Rs 8.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 149.3, stands at 12.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	256.2	313.8
TTM Earnings per share	Rs	8.7	11.9
Diluted earnings per share	Rs	8.7	11.9
Price to Cash Flow	x	13.5	13.5
TTM P/E ratio	x	20.0	12.5
Price / Book Value ratio	x	1.4	1.6
Market Cap	Rs m	8,185	10,142
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for INDIAN HUME PIPE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY22, from 1.3x during FY21. 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 2.2x during FY22, from 1.8x during FY21. 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 8.9% during FY22, from 7.0% during FY22. 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 21.4% during FY22, from 20.8% during FY21. 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 6.0% during FY22, from 6.0% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	1,627	1,691
Interest coverage	x	1.8	2.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	6.0	6.0
Return on equity	%	7.0	8.9
Return on capital employed	%	20.8	21.4

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 down from Rs 225.8 to Rs 149.3, registering a loss of Rs 76.5 or around 33.9%.

Overall, the S&P BSE SENSEX is up 2.5% over the year.

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

Read: Latest Annual Report Analysis of INDIAN HUME PIPE