HLE GLASCOAT 2020-21 Annual Report Analysis

Wed, 31 Mar

HLE GLASCOAT has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

HLE GLASCOAT Income Statement Analysis

• Operating income during the year rose 13.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY21 as against 17.0% in FY20.
• Depreciation charges increased by 15.7% and finance costs decreased by 20.4% YoY, respectively.
• Other income declined by 18.1% YoY.
• Net profit for the year grew by 36.2% YoY.
• Net profit margins during the year grew from 9.2% in FY20 to 11.0% in FY21.

HLE GLASCOAT Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	4,264	4,845	13.6%
Other income	Rs m	48	39	-18.1%
Total Revenues	Rs m	4,312	4,884	13.3%
Gross profit	Rs m	725	925	27.6%
Depreciation	Rs m	74	86	15.7%
Interest	Rs m	133	106	-20.4%
Profit before tax	Rs m	566	772	36.6%
Tax	Rs m	174	239	37.5%
Profit after tax	Rs m	392	534	36.2%
Gross profit margin	%	17.0	19.1
Effective tax rate	%	30.7	30.9
Net profit margin	%	9.2	11.0

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HLE GLASCOAT Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 2 billion as compared to Rs 2 billion in FY20, thereby witnessing an decrease of -8.2%.
• Long-term debt stood at Rs 552 million as compared to Rs 543 million during FY20, a growth of 1.7%.
• Current assets rose 9% and stood at Rs 2 billion, while fixed assets rose 20% and stood at Rs 1 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 4 billion as against Rs 3 billion during FY20, thereby witnessing a growth of 12%.

HLE GLASCOAT Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	760	1,147	50.9
Current Liabilities	Rs m	1,997	1,833	-8.2
Long-term Debt	Rs m	543	552	1.7
Total Liabilities	Rs m	3,354	3,771	12.4
Current assets	Rs m	2,288	2,490	8.9
Fixed Assets	Rs m	1,066	1,281	20.2
Total Assets	Rs m	3,354	3,771	12.4

HLE GLASCOAT Cash Flow Statement Analysis

• HLE GLASCOAT's cash flow from operating activities (CFO) during FY21 stood at Rs 482 million, an improvement of 8.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -292 million, an improvement of 50.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -99 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 92 million from the Rs -51 million net cash flows seen during FY20.

HLE GLASCOAT Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	447	482	8.0%
Cash Flow from Investing Activities	Rs m	-194	-292	-
Cash Flow from Financing Activities	Rs m	-304	-99	-
Net Cash Flow	Rs m	-51	92	-

Current Valuations for HLE GLASCOAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.8, an improvement from the EPS of Rs 30.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,272.5, stands at 58.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 27.1 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 36.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	329.8	370.4
TTM Earnings per share	Rs	30.3	40.8
Diluted earnings per share	Rs	28.7	39.1
Price to Cash Flow	x	14.0	36.3
TTM P/E ratio	x	29.9	58.1
Price / Book Value ratio	x	9.8	19.6
Market Cap	Rs m	7,436	22,486
Dividends per share (Unadj.)	Rs	4.5	4.0

Ratio Analysis for HLE GLASCOAT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY21, from 1.1x during FY20. 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 8.3x during FY21, from 5.2x during FY20. 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 46.5% during FY21, from 51.6% during FY21. 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 51.7% during FY21, from 53.7% during FY20. 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 FY21, from 15.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	1.1	1.4
Debtors’ Days	Days	378	521
Interest coverage	x	5.2	8.3
Debt to equity ratio	x	0.7	0.5
Return on assets	%	15.7	17.0
Return on equity	%	51.6	46.5
Return on capital employed	%	53.7	51.7

To see how HLE GLASCOAT has performed over the last 5 years, please visit here.

HLE GLASCOAT Share Price Performance

Over the last one year, HLE GLASCOAT share price has moved up from Rs 478.7 to Rs 2,272.5, registering a gain of Rs 1,793.9 or around 374.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 21,095.8 (down 0.4%). Over the last one year it has moved up from 10,979.5 to 21,095.8, a gain of 10,116 points (up 92.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for HLE GLASCOAT and quarterly results for HLE GLASCOAT)

Read: Latest Annual Report Analysis of HLE GLASCOAT