HLE GLASCOAT 2022-23 Annual Report Analysis

Thu, 15 Feb

HLE GLASCOAT 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.

HLE GLASCOAT Income Statement Analysis

• Operating income during the year rose 43.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.1% in FY23 as against 16.1% in FY22.
• Depreciation charges increased by 115.4% and finance costs increased by 78.1% YoY, respectively.
• Other income grew by 1.2% YoY.
• Net profit for the year grew by 16.7% YoY.
• Net profit margins during the year declined from 9.4% in FY22 to 7.7% in FY23.

HLE GLASCOAT Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,441	9,228	43.3%
Other income	Rs m	75	75	1.2%
Total Revenues	Rs m	6,516	9,303	42.8%
Gross profit	Rs m	1,035	1,398	35.0%
Depreciation	Rs m	103	221	115.4%
Interest	Rs m	140	249	78.1%
Profit before tax	Rs m	868	1,003	15.7%
Tax	Rs m	261	295	13.2%
Profit after tax	Rs m	607	708	16.7%
Gross profit margin	%	16.1	15.1
Effective tax rate	%	30.1	29.4
Net profit margin	%	9.4	7.7

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HLE GLASCOAT Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 19.4%.
• Long-term debt down at Rs 984 million as compared to Rs 1 billion during FY22, a fall of 24.2%.
• Current assets rose 17% and stood at Rs 6 billion, while fixed assets rose 19% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 9 billion as against Rs 8 billion during FY22, thereby witnessing a growth of 17%.

HLE GLASCOAT Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,535	3,267	28.9
Current Liabilities	Rs m	3,326	3,970	19.4
Long-term Debt	Rs m	1,298	984	-24.2
Total Liabilities	Rs m	7,594	8,912	17.4
Current assets	Rs m	4,792	5,587	16.6
Fixed Assets	Rs m	2,802	3,326	18.7
Total Assets	Rs m	7,594	8,912	17.4

HLE GLASCOAT Cash Flow Statement Analysis

• HLE GLASCOAT's cash flow from operating activities (CFO) during FY23 stood at Rs 49 million, an improvement of 363.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -404 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 133 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -222 million from the Rs 144 million net cash flows seen during FY22.

HLE GLASCOAT 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	11	49	363.9%
Cash Flow from Investing Activities	Rs m	-1,730	-404	-
Cash Flow from Financing Activities	Rs m	1,598	133	-91.7%
Net Cash Flow	Rs m	144	-222	-

Current Valuations for HLE GLASCOAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.4, an decline from the EPS of Rs 44.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 503.3, stands at 49.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.5 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 60.5 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	471.9	135.2
TTM Earnings per share	Rs	44.4	10.4
Diluted earnings per share	Rs	8.9	10.4
Price to Cash Flow	x	104.7	60.5
TTM P/E ratio	x	127.4	49.2
Price / Book Value ratio	x	26.3	17.2
Market Cap	Rs m	66,586	56,170
Dividends per share (Unadj.)	Rs	1.0	1.1

Ratio Analysis for HLE GLASCOAT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.4x 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 deteriorated and stood at 5.0x during FY23, from 7.2x 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 21.7% during FY23, from 23.9% 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 improved and stood at 29.5% during FY23, from 26.3% 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 improved and stood at 10.7% during FY23, from 9.8% 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	1.4	1.4
Debtors’ Days	Days	839	960
Interest coverage	x	7.2	5.0
Debt to equity ratio	x	0.5	0.3
Return on assets	%	9.8	10.7
Return on equity	%	23.9	21.7
Return on capital employed	%	26.3	29.5

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 down from Rs 1,088.3 to Rs 503.3, registering a loss of Rs 585.0 or around 53.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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