HUHTAMAKI INDIA 2018-19 Annual Report Analysis

Tue, 31 Dec

HUHTAMAKI INDIA has announced its results for the year ended December 2019. Let us have a look at the detailed performance review of the company during FY18-19.

HUHTAMAKI INDIA Income Statement Analysis

• Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in CY19 as against 9.4% in CY18.
• Depreciation charges increased by 1.8% and finance costs decreased by 44.6% YoY, respectively.
• Other income grew by 1.0% YoY.
• Net profit for the year grew by 387.4% YoY.
• Net profit margins during the year grew from 1.5% in CY18 to 6.5% in CY19.

HUHTAMAKI INDIA Income Statement 2018-19

No. of Mths Year Ending		12 Dec-18*	12 Dec-19*	% Change
Net Sales	Rs m	23,691	25,990	9.7%
Other income	Rs m	167	168	1.0%
Total Revenues	Rs m	23,857	26,158	9.6%
Gross profit	Rs m	2,230	2,943	32.0%
Depreciation	Rs m	854	869	1.8%
Interest	Rs m	407	226	-44.6%
Profit before tax	Rs m	1,136	2,016	77.5%
Tax	Rs m	787	315	-59.9%
Profit after tax	Rs m	349	1,700	387.4%
Gross profit margin	%	9.4	11.3
Effective tax rate	%	69.3	15.6
Net profit margin	%	1.5	6.5

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HUHTAMAKI INDIA Balance Sheet Analysis

• The company's current liabilities during CY19 stood at Rs 7 billion as compared to Rs 5 billion in CY18, thereby witnessing an increase of 43.5%.
• Long-term debt down at Rs 1 billion as compared to Rs 4 billion during CY18, a fall of 73.9%.
• Current assets rose 6% and stood at Rs 9 billion, while fixed assets rose 1% and stood at Rs 6 billion in CY19.
• Overall, the total assets and liabilities for CY19 stood at Rs 15 billion as against Rs 14 billion during CY18, thereby witnessing a growth of 4%.

HUHTAMAKI INDIA Balance Sheet as on December 2019

No. of Mths Year Ending		12 Dec-18*	12 Dec-19*	% Change
Networth	Rs m	5,494	6,911	25.8
Current Liabilities	Rs m	4,889	7,016	43.5
Long-term Debt	Rs m	3,904	1,018	-73.9
Total Liabilities	Rs m	14,460	15,078	4.3
Current assets	Rs m	8,885	9,425	6.1
Fixed Assets	Rs m	5,575	5,653	1.4
Total Assets	Rs m	14,460	15,078	4.3

HUHTAMAKI INDIA Cash Flow Statement Analysis

• HUHTAMAKI INDIA's cash flow from operating activities (CFO) during CY19 stood at Rs 3 billion, an improvement of 181.2% on a YoY basis.
• Cash flow from investing activities (CFI) during CY19 stood at Rs -875 million, an improvement of 195.5% on a YoY basis.
• Cash flow from financial activities (CFF) during CY19 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during CY19 stood at Rs -32 million from the Rs 33 million net cash flows seen during CY18.

HUHTAMAKI INDIA Cash Flow Statement 2018-19

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-18	Dec-19
Cash Flow from Operating Activities	Rs m	1,012	2,845	181.2%
Cash Flow from Investing Activities	Rs m	-296	-875	-
Cash Flow from Financing Activities	Rs m	-685	-2,001	-
Net Cash Flow	Rs m	33	-32	-

Current Valuations for HUHTAMAKI INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.5, an improvement from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 246.3, stands at 12.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-18*	12 Dec-19*
Sales per share (Unadj.)	Rs	313.7	344.1
TTM Earnings per share	Rs	4.6	22.5
Diluted earnings per share	Rs	4.6	22.5
Price to Cash Flow	x	12.2	6.5
TTM P/E ratio	x	16.5	12.9
Price / Book Value ratio	x	3.8	2.4
Market Cap	Rs m	21,112	16,796
Dividends per share (Unadj.)	Rs	3.0	5.0

Ratio Analysis for HUHTAMAKI INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during CY19, from 1.8x during CY18. 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 9.9x during CY19, from 3.8x during CY18. 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 24.6% during CY19, from 6.3% during CY19. 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 28.3% during CY19, from 16.4% during CY18. 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 12.8% during CY19, from 5.2% during CY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-18*	12 Dec-19*
Current ratio	x	1.8	1.3
Debtors’ Days	Days	878	87
Interest coverage	x	3.8	9.9
Debt to equity ratio	x	0.7	0.1
Return on assets	%	5.2	12.8
Return on equity	%	6.3	24.6
Return on capital employed	%	16.4	28.3

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 320.1 to Rs 196.8, registering a loss of Rs 123.4 or around 38.5%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 11,741.5 (down 0.1%). Over the last one year it has moved up from 10,290.1 to 11,741.5, a gain of 1,451 points (up 14.1%).

Overall, the S&P BSE SENSEX is up 16.3% 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