HUHTAMAKI INDIA 2022-23 Annual Report Analysis

Mon, 15 Apr

HUHTAMAKI INDIA has announced its results for the year ended December 2023. Let us have a look at the detailed performance review of the company during FY22-23.

HUHTAMAKI INDIA Income Statement Analysis

• Operating income during the year fell 14.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 258.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.2% in CY23 as against 5.3% in CY22.
• Depreciation charges decreased by 42.9% and finance costs decreased by 5.4% YoY, respectively.
• Other income declined by 10.2% YoY.
• Net profit for the year grew by 725.2% YoY.
• Net profit margins during the year grew from 1.7% in CY22 to 16.1% in CY23.

HUHTAMAKI INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	29,829	25,494	-14.5%
Other income	Rs m	172	155	-10.2%
Total Revenues	Rs m	30,002	25,649	-14.5%
Gross profit	Rs m	1,577	5,649	258.2%
Depreciation	Rs m	861	492	-42.9%
Interest	Rs m	330	312	-5.4%
Profit before tax	Rs m	559	5,000	794.0%
Tax	Rs m	63	904	1,337.4%
Profit after tax	Rs m	496	4,096	725.2%
Gross profit margin	%	5.3	22.2
Effective tax rate	%	11.2	18.1
Net profit margin	%	1.7	16.1

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HUHTAMAKI INDIA Balance Sheet Analysis

• The company's current liabilities during CY23 down at Rs 8 billion as compared to Rs 8 billion in CY22, thereby witnessing an decrease of -5.1%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during CY22, a fall of 0.0%.
• Current assets rose 29% and stood at Rs 15 billion, while fixed assets rose 3% and stood at Rs 11 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 26 billion as against Rs 23 billion during CY22, thereby witnessing a growth of 15%.

HUHTAMAKI INDIA Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	7,507	11,459	52.6
Current Liabilities	Rs m	8,327	7,902	-5.1
Long-term Debt	Rs m	2,000	2,000	0.0
Total Liabilities	Rs m	22,589	25,971	15.0
Current assets	Rs m	11,355	14,655	29.1
Fixed Assets	Rs m	11,032	11,314	2.6
Total Assets	Rs m	22,589	25,971	15.0

HUHTAMAKI INDIA Cash Flow Statement Analysis

• HUHTAMAKI INDIA's cash flow from operating activities (CFO) during CY23 stood at Rs 3 billion, an improvement of 106.2% on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs 398 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs 1 billion from the Rs 112 million net cash flows seen during CY22.

HUHTAMAKI INDIA Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	1,327	2,736	106.2%
Cash Flow from Investing Activities	Rs m	-896	398	-
Cash Flow from Financing Activities	Rs m	-316	-2,115	-
Net Cash Flow	Rs m	112	1,020	811.1%

Current Valuations for HUHTAMAKI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.2, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 286.6, stands at 5.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	395.0	337.6
TTM Earnings per share	Rs	6.6	54.2
Diluted earnings per share	Rs	6.6	54.2
Price to Cash Flow	x	11.1	4.2
TTM P/E ratio	x	30.3	5.3
Price / Book Value ratio	x	1.9	1.7
Market Cap	Rs m	14,536	19,235
Dividends per share (Unadj.)	Rs	2.0	5.0

Ratio Analysis for HUHTAMAKI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during CY23, from 1.4x during CY22. 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 17.0x during CY23, from 2.7x during CY22. 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 35.7% during CY23, from 6.6% during CY23. 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 39.5% during CY23, from 9.3% during CY22. 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 17.0% during CY23, from 3.7% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	1.4	1.9
Debtors’ Days	Days	81	79
Interest coverage	x	2.7	17.0
Debt to equity ratio	x	0.3	0.2
Return on assets	%	3.7	17.0
Return on equity	%	6.6	35.7
Return on capital employed	%	9.3	39.5

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 up from Rs 151.0 to Rs 189.8, registering a gain of Rs 38.8 or around 25.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 16,487.0 (up 1.1%). Over the last one year it has moved up from 13,334.9 to 16,487.0, a gain of 3,152 points (up 23.6%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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