HBL POWER 2021-22 Annual Report Analysis

Mon, 26 Sep

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

HBL POWER Income Statement Analysis

• Operating income during the year rose 35.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 137.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.2% in FY22 as against 6.9% in FY21.
• Depreciation charges decreased by 9.6% and finance costs decreased by 49.2% YoY, respectively.
• Other income grew by 49.3% YoY.
• Net profit for the year grew by 582.7% YoY.
• Net profit margins during the year grew from 1.5% in FY21 to 7.6% in FY22.

HBL POWER Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	9,120	12,362	35.5%
Other income	Rs m	96	144	49.3%
Total Revenues	Rs m	9,217	12,506	35.7%
Gross profit	Rs m	633	1,506	137.8%
Depreciation	Rs m	388	351	-9.6%
Interest	Rs m	147	75	-49.2%
Profit before tax	Rs m	194	1,224	530.2%
Tax	Rs m	57	287	403.8%
Profit after tax	Rs m	137	937	582.7%
Gross profit margin	%	6.9	12.2
Effective tax rate	%	29.3	23.4
Net profit margin	%	1.5	7.6

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HBL POWER Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 2 billion in FY21, thereby witnessing an increase of 10.1%.
• Long-term debt stood at Rs 277 million as compared to Rs 105 million during FY21, a growth of 162.6%.
• Current assets rose 17% and stood at Rs 8 billion, while fixed assets rose 2% and stood at Rs 4 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 12 billion as against Rs 11 billion during FY21, thereby witnessing a growth of 12%.

HBL POWER Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,820	8,658	10.7
Current Liabilities	Rs m	2,375	2,616	10.1
Long-term Debt	Rs m	105	277	162.6
Total Liabilities	Rs m	10,539	11,779	11.8
Current assets	Rs m	6,778	7,936	17.1
Fixed Assets	Rs m	3,761	3,843	2.2
Total Assets	Rs m	10,539	11,779	11.8

HBL POWER Cash Flow Statement Analysis

• HBL POWER 's cash flow from operating activities (CFO) during FY22 stood at Rs 625 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -168 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -223 million, an improvement of 78% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 234 million from the Rs -145 million net cash flows seen during FY21.

HBL POWER Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	1,211	625	-48.4%
Cash Flow from Investing Activities	Rs m	-320	-168	-
Cash Flow from Financing Activities	Rs m	-1,036	-223	-
Net Cash Flow	Rs m	-145	234	-

Current Valuations for HBL POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.4, an improvement from the EPS of Rs 0.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 88.5, stands at 26.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	32.9	44.6
TTM Earnings per share	Rs	0.5	3.4
Diluted earnings per share	Rs	0.5	3.4
Price to Cash Flow	x	17.6	12.2
TTM P/E ratio	x	74.8	26.6
Price / Book Value ratio	x	1.0	1.8
Market Cap	Rs m	7,588	15,682
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for HBL POWER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY22, from 2.9x during FY21. 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 17.4x during FY22, from 2.3x during FY21. 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 10.8% during FY22, from 1.8% during FY22. 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 14.5% during FY22, from 4.3% during FY21. 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 8.6% during FY22, from 2.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	2.9	3.0
Debtors’ Days	Days	1,015	864
Interest coverage	x	2.3	17.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.7	8.6
Return on equity	%	1.8	10.8
Return on capital employed	%	4.3	14.5

To see how HBL POWER has performed over the last 5 years, please visit here.

HBL POWER Share Price Performance

Over the last one year, HBL POWER share price has moved up from Rs 48.0 to Rs 88.5, registering a gain of Rs 40.5 or around 84.5%.

Overall, the S&P BSE SENSEX is down 2.9% over the year.

(To know more, check out historical annual results for HBL POWER and quarterly results for HBL POWER )

Read: Latest Annual Report Analysis of HBL POWER