HUHTAMAKI INDIA 2021-22 Annual Report Analysis

Sat, 31 Dec

HUHTAMAKI INDIA has announced its results for the year ended December 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HUHTAMAKI INDIA Income Statement Analysis

• Operating income during the year rose 13.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.3% in CY22 as against 3.0% in CY21.
• Depreciation charges decreased by 6.6% and finance costs increased by 19.3% YoY, respectively.
• Other income grew by 83.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.9% in CY21 to 1.7% in CY22.

HUHTAMAKI INDIA Income Statement 2021-22

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Net Sales	Rs m	26,253	29,829	13.6%
Other income	Rs m	94	172	83.9%
Total Revenues	Rs m	26,347	30,002	13.9%
Gross profit	Rs m	789	1,577	100.0%
Depreciation	Rs m	922	861	-6.6%
Interest	Rs m	276	330	19.3%
Profit before tax	Rs m	-316	559	NA
Tax	Rs m	-89	63	NA
Profit after tax	Rs m	-227	496	NA
Gross profit margin	%	3.0	5.3
Effective tax rate	%	28.1	11.2
Net profit margin	%	-0.9	1.7

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HUHTAMAKI INDIA Balance Sheet Analysis

• The company's current liabilities during CY22 down at Rs 8 billion as compared to Rs 9 billion in CY21, thereby witnessing an decrease of -9.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during CY21, a fall of 0.0%.
• Current assets fell 5% and stood at Rs 11 billion, while fixed assets fell 1% and stood at Rs 11 billion in CY22.
• Overall, the total assets and liabilities for CY22 stood at Rs 23 billion as against Rs 23 billion during CY21, thereby witnessing a fall of 2%.

HUHTAMAKI INDIA Balance Sheet as on December 2022

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*	% Change
Networth	Rs m	7,096	7,507	5.8
Current Liabilities	Rs m	9,157	8,327	-9.1
Long-term Debt	Rs m	2,000	2,000	0.0
Total Liabilities	Rs m	23,095	22,589	-2.2
Current assets	Rs m	11,936	11,355	-4.9
Fixed Assets	Rs m	11,159	11,032	-1.1
Total Assets	Rs m	23,095	22,589	-2.2

HUHTAMAKI INDIA Cash Flow Statement Analysis

• HUHTAMAKI INDIA's cash flow from operating activities (CFO) during CY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY22 stood at Rs -896 million, an improvement of 60.5% on a YoY basis.
• Cash flow from financial activities (CFF) during CY22 stood at Rs -316 million on a YoY basis.
• Overall, net cash flows for the company during CY22 stood at Rs 112 million from the Rs -349 million net cash flows seen during CY21.

HUHTAMAKI INDIA Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-21	Dec-22
Cash Flow from Operating Activities	Rs m	-277	1,327	-
Cash Flow from Investing Activities	Rs m	-558	-896	-
Cash Flow from Financing Activities	Rs m	486	-316	-
Net Cash Flow	Rs m	-349	112	-

Current Valuations for HUHTAMAKI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an improvement from the EPS of Rs -3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 198.9, stands at 30.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 10.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Sales per share (Unadj.)	Rs	347.6	395.0
TTM Earnings per share	Rs	-3.0	6.6
Diluted earnings per share	Rs	-3.0	6.6
Price to Cash Flow	x	24.8	10.7
TTM P/E ratio	x	-75.8	30.3
Price / Book Value ratio	x	3.0	1.9
Market Cap	Rs m	21,054	14,536
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for HUHTAMAKI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during CY22, from 1.3x during CY21. 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 2.7x during CY22, from -0.1x during CY21. 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 6.6% during CY22, from -3.2% during CY22. 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 9.3% during CY22, from -0.4% during CY21. 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 3.7% during CY22, from 0.2% during CY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-21*	12 Dec-22*
Current ratio	x	1.3	1.4
Debtors’ Days	Days	88	81
Interest coverage	x	-0.1	2.7
Debt to equity ratio	x	0.3	0.3
Return on assets	%	0.2	3.7
Return on equity	%	-3.2	6.6
Return on capital employed	%	-0.4	9.3

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 280.3 to Rs 151.0, registering a loss of Rs 129.3 or around 46.1%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 13,334.9 (up 1.1%). Over the last one year it has moved up from 12,875.4 to 13,334.9, a gain of 459 points (up 3.6%).

Overall, the S&P BSE SENSEX is up 16.8% over the year.

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

Read: Latest Annual Report Analysis of HUHTAMAKI INDIA