Markets will remain closed on May 01, 2024 on account of Maharashtra Day.

INDIAN HUME PIPE 2022-23 Annual Report Analysis

Mon, 17 Jul

INDIAN HUME PIPE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

INDIAN HUME PIPE Income Statement Analysis

• Operating income during the year rose 1.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY23 as against 10.3% in FY22.
• Depreciation charges decreased by 10.8% and finance costs increased by 16.4% YoY, respectively.
• Other income grew by 361.1% YoY.
• Net profit for the year declined by 3.6% YoY.
• Net profit margins during the year declined from 3.8% in FY22 to 3.6% in FY23.

INDIAN HUME PIPE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,204	15,429	1.5%
Other income	Rs m	47	217	361.1%
Total Revenues	Rs m	15,251	15,646	2.6%
Gross profit	Rs m	1,568	1,432	-8.7%
Depreciation	Rs m	174	155	-10.8%
Interest	Rs m	661	770	16.4%
Profit before tax	Rs m	780	724	-7.2%
Tax	Rs m	202	167	-17.4%
Profit after tax	Rs m	578	557	-3.6%
Gross profit margin	%	10.3	9.3
Effective tax rate	%	25.9	23.0
Net profit margin	%	3.8	3.6

WATCH NOW: Top-5 Stocks in India's $10 Trillion Rally

INDIAN HUME PIPE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 14 billion as compared to Rs 12 billion in FY22, thereby witnessing an increase of 14.1%.
• Long-term debt down at Rs 134 million as compared to Rs 232 million during FY22, a fall of 42.1%.
• Current assets rose 15% and stood at Rs 19 billion, while fixed assets fell 25% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 7%.

INDIAN HUME PIPE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,502	6,953	6.9
Current Liabilities	Rs m	12,459	14,210	14.1
Long-term Debt	Rs m	232	134	-42.1
Total Liabilities	Rs m	20,730	22,157	6.9
Current assets	Rs m	16,554	19,023	14.9
Fixed Assets	Rs m	4,176	3,134	-25.0
Total Assets	Rs m	20,730	22,157	6.9

INDIAN HUME PIPE Cash Flow Statement Analysis

• INDIAN HUME PIPE's cash flow from operating activities (CFO) during FY23 stood at Rs 194 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 114 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -623 million, an improvement of 33% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -314 million from the Rs -514 million net cash flows seen during FY22.

INDIAN HUME PIPE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	559	194	-65.2%
Cash Flow from Investing Activities	Rs m	-147	114	-
Cash Flow from Financing Activities	Rs m	-926	-623	-
Net Cash Flow	Rs m	-514	-314	-

Current Valuations for INDIAN HUME PIPE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an decline from the EPS of Rs 11.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 232.4, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 10.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	313.8	318.4
TTM Earnings per share	Rs	11.9	11.5
Diluted earnings per share	Rs	11.0	10.6
Price to Cash Flow	x	12.5	10.9
TTM P/E ratio	x	16.2	22.0
Price / Book Value ratio	x	1.6	1.1
Market Cap	Rs m	10,142	7,792
Dividends per share (Unadj.)	Rs	2.0	1.0

Ratio Analysis for INDIAN HUME PIPE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x during FY22. 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 1.9x during FY23, from 2.2x during FY22. 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 8.0% during FY23, from 8.9% during FY23. 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 21.1% during FY23, from 21.4% during FY22. 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 FY23, from 6.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.3	1.3
Debtors’ Days	Days	1,691	1,756
Interest coverage	x	2.2	1.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	6.0
Return on equity	%	8.9	8.0
Return on capital employed	%	21.4	21.1

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 145.0 to Rs 232.4, registering a gain of Rs 87.4 or around 60.2%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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