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HUHTAMAKI INDIA 2019-20 Annual Report Analysis
Thu, 31 Dec

HUHTAMAKI INDIA has announced its results for the year ended December 2020. Let us have a look at the detailed performance review of the company during FY19-20.

HUHTAMAKI INDIA Income Statement Analysis

  • Operating income during the year fell 5.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.5% in CY20 as against 11.3% in CY19.
  • Depreciation charges increased by 12.7% and finance costs increased by 19.8% YoY, respectively.
  • Other income declined by 52.0% YoY.
  • Net profit for the year declined by 43.5% YoY.
  • Net profit margins during the year declined from 6.5% in CY19 to 3.9% in CY20.

HUHTAMAKI INDIA Income Statement 2019-20

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Net Sales Rs m 25,990 24,627 -5.2%
Other income Rs m 168 81 -52.0%
Total Revenues Rs m 26,158 24,708 -5.5%
Gross profit Rs m 2,943 2,345 -20.3%
Depreciation Rs m 869 979 12.7%
Interest Rs m 226 270 19.8%
Profit before tax Rs m 2,016 1,176 -41.7%
Tax Rs m 315 216 -31.5%
Profit after tax Rs m 1,700 960 -43.5%
Gross profit margin % 11.3 9.5
Effective tax rate % 15.6 18.4
Net profit margin % 6.5 3.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

HUHTAMAKI INDIA Balance Sheet Analysis

  • The company's current liabilities during CY20 down at Rs 6 billion as compared to Rs 7 billion in CY19, thereby witnessing an decrease of -9.9%.
  • Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during CY19, a growth of 22.8%.
  • Current assets fell 3% and stood at Rs 9 billion, while fixed assets rose 17% and stood at Rs 7 billion in CY20.
  • Overall, the total assets and liabilities for CY20 stood at Rs 16 billion as against Rs 15 billion during CY19, thereby witnessing a growth of 4%.

HUHTAMAKI INDIA Balance Sheet as on December 2020

No. of Mths Year Ending 12 Dec-19* 12 Dec-20* % Change
Networth Rs m 6,911 7,587 9.8
 
Current Liabilities Rs m 7,016 6,323 -9.9
Long-term Debt Rs m 1,018 1,250 22.8
Total Liabilities Rs m 15,078 15,751 4.5
 
Current assets Rs m 9,425 9,138 -3.1
Fixed Assets Rs m 5,653 6,613 17.0
Total Assets Rs m 15,078 15,751 4.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



HUHTAMAKI INDIA Cash Flow Statement Analysis

  • HUHTAMAKI INDIA's cash flow from operating activities (CFO) during CY20 stood at Rs 2 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during CY20 stood at Rs -727 million on a YoY basis.
  • Cash flow from financial activities (CFF) during CY20 stood at Rs -742 million, an improvement of 63% on a YoY basis.
  • Overall, net cash flows for the company during CY20 stood at Rs 225 million from the Rs -32 million net cash flows seen during CY19.

HUHTAMAKI INDIA Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Dec-19 Dec-20
Cash Flow from Operating Activities Rs m 2,845 1,693 -40.5%
Cash Flow from Investing Activities Rs m -875 -727 -
Cash Flow from Financing Activities Rs m -2,001 -742 -
Net Cash Flow Rs m -32 225 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for HUHTAMAKI INDIA

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an decline from the EPS of Rs 22.5 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 312.6, stands at 24.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.0 times.
  • The company's price to cash flow (P/CF) ratio stood at 9.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Sales per share (Unadj.) Rs 344.1 326.1
TTM Earnings per share Rs 22.5 12.7
Diluted earnings per share Rs 22.5 12.7
Price to Cash Flow x 7.2 9.8
TTM P/E ratio x 12.9 24.6
Price / Book Value ratio x 2.4 2.5
Market Cap Rs m 16,796 18,918
Dividends per share (Unadj.) Rs 5.0 3.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for HUHTAMAKI INDIA

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.4x during CY20, from 1.3x during CY19. 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 5.4x during CY20, from 9.9x during CY19. 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 12.7% during CY20, from 24.6% during CY20. 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 16.4% during CY20, from 28.3% during CY19. 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 7.8% during CY20, from 12.8% during CY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Dec-19* 12 Dec-20*
Current ratio x 1.3 1.4
Debtors’ Days Days 87 79
Interest coverage x 9.9 5.4
Debt to equity ratio x 0.1 0.2
Return on assets % 12.8 7.8
Return on equity % 24.6 12.7
Return on capital employed % 28.3 16.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how HUHTAMAKI INDIA has performed over the last 5 years, please visit here.

HUHTAMAKI INDIA Share Price Performance

Over the last one year, HUHTAMAKI INDIA share price has moved down from Rs 196.8 to Rs 195.8, registering a loss of Rs 1.0 or around 0.5%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 10,254.9 (up 5.8%). Over the last one year it has moved down from 11,741.5 to 10,254.9, a loss of 1,487 points (down 12.7%).

Overall, the S&P BSE SENSEX is down 24.2% over the year.

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

Annual Report FAQs

What is the current share price of HUHTAMAKI INDIA?

HUHTAMAKI INDIA currently trades at Rs 299.5 per share. You can check out the latest share price performance of HUHTAMAKI INDIA here...

What was the revenue of HUHTAMAKI INDIA in CY20? How does it compare to earlier years?

The revenues of HUHTAMAKI INDIA stood at Rs 24,708 m in CY20, which was down -5.5% compared to Rs 26,158 m reported in CY19.

HUHTAMAKI INDIA's revenue has grown from Rs 20,196 m in CY16 to Rs 24,708 m in CY20.

Over the past 5 years, the revenue of HUHTAMAKI INDIA has grown at a CAGR of 5.2%.

What was the net profit of HUHTAMAKI INDIA in CY20? How does it compare to earlier years?

The net profit of HUHTAMAKI INDIA stood at Rs 960 m in CY20, which was down -43.5% compared to Rs 1,700 m reported in CY19.

This compares to a net profit of Rs 349 m in CY18 and a net profit of Rs 636 m in CY17.

Over the past 5 years, HUHTAMAKI INDIA net profit has grown at a CAGR of 4.2%.

What does the cash flow statement of HUHTAMAKI INDIA 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 HUHTAMAKI INDIA reveals:

  • Cash flow from operations decreased in CY20 and stood at Rs 1,693 m as compared to Rs 2,845 m in CY19.
  • Cash flow from investments increased in CY20 and stood at Rs -727 m as compared to Rs -875 m in CY19.
  • Cash flow from financial activity increased in CY20 and stood at Rs -742 m as compared to Rs -2,001 m in CY19.

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

(Rs m)CY16CY17CY18CY19CY20
From Operations1,6659601,0122,8451,693
From Investments-446-296-875-727
From Financial Activity-1,504-873-685-2,001-742
Net Cashflow15713333-32225

What does the Key Ratio analysis of HUHTAMAKI INDIA 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 HUHTAMAKI INDIA reveals:

  • Operating profit margins witnessed a fall and stood at 9.5% in CY20 as against 11.3% in CY19.
  • Net profit margins declined from 6.5% in CY19 to 3.9% in CY20.
  • Debt to Equity ratio for CY20 stood at 0.2 as compared to 0.1 in CY19.

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

 CY16CY17CY18CY19CY20
Operating Profit Margin (%)12.410.89.411.39.5
Net Profit Margin (%)4.13.11.56.53.9
Debt to Equity Ratio (x)0.80.70.70.10.2

Read: Latest Annual Report Analysis of HUHTAMAKI INDIA

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