HINDWARE HOME INNOVATION 2022-23 Annual Report Analysis

Fri, 31 Mar

HINDWARE HOME INNOVATION 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.

HINDWARE HOME INNOVATION Income Statement Analysis

• Operating income during the year rose 25.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.6% in FY23 as against 12.0% in FY22.
• Depreciation charges increased by 156.7% and finance costs increased by 277.6% YoY, respectively.
• Other income grew by 18.2% YoY.
• Net profit for the year declined by 67.3% YoY.
• Net profit margins during the year declined from 8.9% in FY22 to 2.3% in FY23.

HINDWARE HOME INNOVATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	22,936	28,733	25.3%
Other income	Rs m	293	346	18.2%
Total Revenues	Rs m	23,229	29,079	25.2%
Gross profit	Rs m	2,757	2,464	-10.6%
Depreciation	Rs m	393	1,010	156.7%
Interest	Rs m	204	771	277.6%
Profit before tax	Rs m	2,452	1,030	-58.0%
Tax	Rs m	417	365	-12.5%
Profit after tax	Rs m	2,035	665	-67.3%
Gross profit margin	%	12.0	8.6
Effective tax rate	%	17.0	35.5
Net profit margin	%	8.9	2.3

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HINDWARE HOME INNOVATION Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 11 billion as compared to Rs 13 billion in FY22, thereby witnessing an decrease of -17.4%.
• Long-term debt stood at Rs 3 billion as compared to Rs 105 million during FY22, a growth of 3024.3%.
• Current assets rose 1% and stood at Rs 12 billion, while fixed assets rose 16% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 23 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 8%.

HINDWARE HOME INNOVATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,264	5,757	9.4
Current Liabilities	Rs m	13,449	11,103	-17.4
Long-term Debt	Rs m	105	3,281	3,024.3
Total Liabilities	Rs m	21,074	22,664	7.5
Current assets	Rs m	11,883	11,974	0.8
Fixed Assets	Rs m	9,191	10,689	16.3
Total Assets	Rs m	21,074	22,664	7.5

HINDWARE HOME INNOVATION Cash Flow Statement Analysis

• HINDWARE HOME INNOVATION's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 468.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 5 billion, an improvement of 661% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -173 million from the Rs 189 million net cash flows seen during FY22.

HINDWARE HOME INNOVATION 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	2,261	2,208	-2.3%
Cash Flow from Investing Activities	Rs m	-1,240	-7,047	-
Cash Flow from Financing Activities	Rs m	-832	4,667	-
Net Cash Flow	Rs m	189	-173	-

Current Valuations for HINDWARE HOME INNOVATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.2, an decline from the EPS of Rs 28.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 354.4, stands at 38.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 16.0 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	317.2	397.4
TTM Earnings per share	Rs	28.1	9.2
Diluted earnings per share	Rs	28.1	9.2
Price to Cash Flow	x	10.8	16.0
TTM P/E ratio	x	12.9	38.5
Price / Book Value ratio	x	5.1	4.6
Market Cap	Rs m	26,652	26,726
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for HINDWARE HOME INNOVATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 0.9x 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 2.3x during FY23, from 13.0x 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 11.5% during FY23, from 38.7% 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 19.9% during FY23, from 49.5% 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 6.3% during FY23, from 10.6% 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	0.9	1.1
Debtors’ Days	Days	487	480
Interest coverage	x	13.0	2.3
Debt to equity ratio	x	0.0	0.6
Return on assets	%	10.6	6.3
Return on equity	%	38.7	11.5
Return on capital employed	%	49.5	19.9

To see how HINDWARE HOME INNOVATION has performed over the last 5 years, please visit here.

HINDWARE HOME INNOVATION Share Price Performance

Over the last one year, HINDWARE HOME INNOVATION share price has moved down from Rs 363.0 to Rs 354.4, registering a loss of Rs 8.7 or around 2.4%.

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

(To know more, check out historical annual results for HINDWARE HOME INNOVATION and quarterly results for HINDWARE HOME INNOVATION)