HBL ENGINEERING 2024-25 Annual Report Analysis

Thu, 4 Sep

HBL ENGINEERING has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

HBL ENGINEERING Income Statement Analysis

• Operating income during the year fell 12.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.0% in FY25 as against 18.5% in FY24.
• Depreciation charges increased by 2.9% and finance costs decreased by 9.1% YoY, respectively.
• Other income grew by 52.0% YoY.
• Net profit for the year declined by 4.6% YoY.
• Net profit margins during the year grew from 12.6% in FY24 to 13.7% in FY25.

HBL ENGINEERING Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	22,334	19,461	-12.9%
Other income	Rs m	179	272	52.0%
Total Revenues	Rs m	22,513	19,734	-12.3%
Gross profit	Rs m	4,131	3,886	-5.9%
Depreciation	Rs m	413	424	2.9%
Interest	Rs m	129	118	-9.1%
Profit before tax	Rs m	3,768	3,617	-4.0%
Tax	Rs m	964	942	-2.4%
Profit after tax	Rs m	2,803	2,675	-4.6%
Gross profit margin	%	18.5	20.0
Effective tax rate	%	25.6	26.0
Net profit margin	%	12.6	13.7

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HBL ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 6 billion as compared to Rs 5 billion in FY24, thereby witnessing an increase of 22.8%.
• Long-term debt down at Rs 4 million as compared to Rs 230 million during FY24, a fall of 98.2%.
• Current assets rose 17% and stood at Rs 14 billion, while fixed assets rose 30% and stood at Rs 7 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 22 billion as against Rs 18 billion during FY24, thereby witnessing a growth of 21%.

HBL ENGINEERING Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	12,205	14,583	19.5
Current Liabilities	Rs m	5,135	6,307	22.8
Long-term Debt	Rs m	230	4	-98.2
Total Liabilities	Rs m	17,715	21,509	21.4
Current assets	Rs m	12,155	14,254	17.3
Fixed Assets	Rs m	5,560	7,255	30.5
Total Assets	Rs m	17,715	21,509	21.4

HBL ENGINEERING Cash Flow Statement Analysis

• HBL ENGINEERING's cash flow from operating activities (CFO) during FY25 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -3 billion, an improvement of 122.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs -252 million, an improvement of 40% on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs -1 billion from the Rs 915 million net cash flows seen during FY24.

HBL ENGINEERING Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	2,731	2,274	-16.7%
Cash Flow from Investing Activities	Rs m	-1,394	-3,098	-
Cash Flow from Financing Activities	Rs m	-423	-252	-
Net Cash Flow	Rs m	915	-1,076	-

Current Valuations for HBL ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an decline from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 853.3, stands at 72.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.2 times, while the price to sales ratio stands at 12.2 times.
• The company's price to cash flow (P/CF) ratio stood at 51.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	80.6	70.2
TTM Earnings per share	Rs	10.1	9.7
Diluted earnings per share	Rs	10.1	9.7
Price to Cash Flow	x	39.2	51.1
TTM P/E ratio	x	48.0	72.1
Price / Book Value ratio	x	8.0	10.9
Market Cap	Rs m	98,024	158,410
Dividends per share (Unadj.)	Rs	0.5	1.0

Ratio Analysis for HBL ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY25, from 2.4x during FY24. 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 31.8x during FY25, from 30.1x during FY24. 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 18.3% during FY25, from 23.0% during FY25. 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 25.6% during FY25, from 31.3% during FY24. 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 13.0% during FY25, from 16.6% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	2.4	2.3
Debtors’ Days	Days	625	724
Interest coverage	x	30.1	31.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.6	13.0
Return on equity	%	23.0	18.3
Return on capital employed	%	31.3	25.6

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

HBL ENGINEERING Share Price Performance

Over the last one year, HBL ENGINEERING share price has moved up from Rs 628.6 to Rs 853.3, registering a gain of Rs 224.7 or around 35.7%.

Overall, the S&P BSE SENSEX is down 1.9% over the year.

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