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HBL POWER 2022-23 Annual Report Analysis

Thu, 7 Sep

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

HBL POWER Income Statement Analysis

• Operating income during the year rose 10.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.3% in FY23 as against 12.2% in FY22.
• Depreciation charges increased by 1.1% and finance costs decreased by 12.4% YoY, respectively.
• Other income grew by 23.0% YoY.
• Net profit for the year grew by 5.1% YoY.
• Net profit margins during the year declined from 7.6% in FY22 to 7.2% in FY23.

HBL POWER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,362	13,687	10.7%
Other income	Rs m	144	177	23.0%
Total Revenues	Rs m	12,506	13,864	10.9%
Gross profit	Rs m	1,506	1,541	2.3%
Depreciation	Rs m	351	355	1.1%
Interest	Rs m	75	65	-12.4%
Profit before tax	Rs m	1,224	1,298	6.0%
Tax	Rs m	287	314	9.3%
Profit after tax	Rs m	937	984	5.1%
Gross profit margin	%	12.2	11.3
Effective tax rate	%	23.4	24.2
Net profit margin	%	7.6	7.2

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HBL POWER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 32.6%.
• Long-term debt stood at Rs 393 million as compared to Rs 277 million during FY22, a growth of 42.1%.
• Current assets rose 18% and stood at Rs 9 billion, while fixed assets rose 10% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 12 billion during FY22, thereby witnessing a growth of 15%.

HBL POWER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,658	9,514	9.9
Current Liabilities	Rs m	2,616	3,470	32.6
Long-term Debt	Rs m	277	393	42.1
Total Liabilities	Rs m	11,779	13,553	15.1
Current assets	Rs m	7,924	9,333	17.8
Fixed Assets	Rs m	3,843	4,220	9.8
Total Assets	Rs m	11,779	13,553	15.1

HBL POWER Cash Flow Statement Analysis

• HBL POWER 's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 96.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -497 million, an improvement of 196.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 96 million, an improvement of 143% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 823 million from the Rs 234 million net cash flows seen during FY22.

HBL POWER Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	625	1,224	96.0%
Cash Flow from Investing Activities	Rs m	-168	-497	-
Cash Flow from Financing Activities	Rs m	-223	96	-
Net Cash Flow	Rs m	234	823	251.9%

Current Valuations for HBL POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.6, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 275.9, stands at 59.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 5.6 times.
• The company's price to cash flow (P/CF) ratio stood at 18.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	44.6	49.4
TTM Earnings per share	Rs	3.4	3.6
Diluted earnings per share	Rs	3.4	3.6
Price to Cash Flow	x	13.6	18.9
TTM P/E ratio	x	18.9	59.5
Price / Book Value ratio	x	1.8	2.7
Market Cap	Rs m	15,682	25,336
Dividends per share (Unadj.)	Rs	0.4	0.5

Ratio Analysis for HBL POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.7x during FY23, from 3.0x during FY22. 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 20.8x during FY23, from 17.4x during FY22. 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 10.3% during FY23, from 10.8% during FY23. 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 13.8% during FY23, from 14.5% during FY22. 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 7.7% during FY23, from 8.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.0	2.7
Debtors’ Days	Days	864	832
Interest coverage	x	17.4	20.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.6	7.7
Return on equity	%	10.8	10.3
Return on capital employed	%	14.5	13.8

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 94.6 to Rs 275.9, registering a gain of Rs 181.3 or around 191.6%.

Overall, the S&P BSE SENSEX is up 11.2% over the year.

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