HLE GLASCOAT 2021-22 Annual Report Analysis

Mon, 22 Aug

HLE GLASCOAT 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.

HLE GLASCOAT Income Statement Analysis

• Operating income during the year rose 34.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY22 as against 19.1% in FY21.
• Depreciation charges increased by 30.4% and finance costs increased by 32.5% YoY, respectively.
• Other income grew by 104.3% YoY.
• Net profit for the year grew by 9.1% YoY.
• Net profit margins during the year declined from 11.0% in FY21 to 8.9% in FY22.

HLE GLASCOAT Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	4,845	6,522	34.6%
Other income	Rs m	39	80	104.3%
Total Revenues	Rs m	4,884	6,603	35.2%
Gross profit	Rs m	925	1,016	9.8%
Depreciation	Rs m	86	112	30.4%
Interest	Rs m	106	141	32.5%
Profit before tax	Rs m	772	843	9.2%
Tax	Rs m	239	261	9.3%
Profit after tax	Rs m	534	582	9.1%
Gross profit margin	%	19.1	15.6
Effective tax rate	%	30.9	30.9
Net profit margin	%	11.0	8.9

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HLE GLASCOAT 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 87.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 552 million during FY21, a growth of 135.2%.
• Current assets rose 94% and stood at Rs 5 billion, while fixed assets rose 116% and stood at Rs 3 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 8 billion as against Rs 4 billion during FY21, thereby witnessing a growth of 102%.

HLE GLASCOAT Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	1,147	2,535	121.1
Current Liabilities	Rs m	1,824	3,413	87.1
Long-term Debt	Rs m	552	1,298	135.2
Total Liabilities	Rs m	3,771	7,601	101.5
Current assets	Rs m	2,472	4,792	93.9
Fixed Assets	Rs m	1,299	2,808	116.1
Total Assets	Rs m	3,771	7,601	101.5

HLE GLASCOAT Cash Flow Statement Analysis

• HLE GLASCOAT's cash flow from operating activities (CFO) during FY22 stood at Rs 103 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 492.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 2 billion, an improvement of 1,622% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -121 million from the Rs 92 million net cash flows seen during FY21.

HLE GLASCOAT 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	482	103	-78.6%
Cash Flow from Investing Activities	Rs m	-292	-1,730	-
Cash Flow from Financing Activities	Rs m	-99	1,506	-
Net Cash Flow	Rs m	92	-121	-

Current Valuations for HLE GLASCOAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 42.7, an improvement from the EPS of Rs 40.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,506.0, stands at 80.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.9 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 95.9 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	370.4	477.8
TTM Earnings per share	Rs	40.8	42.7
Diluted earnings per share	Rs	39.1	42.7
Price to Cash Flow	x	50.1	95.9
TTM P/E ratio	x	58.1	80.5
Price / Book Value ratio	x	19.6	26.3
Market Cap	Rs m	22,486	66,586
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for HLE GLASCOAT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY22, from 1.4x 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 deteriorated and stood at 7.0x during FY22, from 8.3x 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 declined and down at 23.0% during FY22, from 46.5% 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 declined and down at 25.7% during FY22, from 51.7% 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 declined and down at 9.5% during FY22, from 17.0% 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	1.4	1.4
Debtors’ Days	Days	521	828
Interest coverage	x	8.3	7.0
Debt to equity ratio	x	0.5	0.5
Return on assets	%	17.0	9.5
Return on equity	%	46.5	23.0
Return on capital employed	%	51.7	25.7

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 3,431.8 to Rs 3,506.0, registering a gain of Rs 74.3 or around 2.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 31,209.2 (down 0.9%). Over the last one year it has moved up from 23,548.5 to 31,209.2, a gain of 7,661 points (up 32.5%).

Overall, the S&P BSE SENSEX is up 6.0% 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