HUBTOWN 2023-24 Annual Report Analysis

Wed, 20 Nov

HUBTOWN has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

HUBTOWN Income Statement Analysis

• Operating income during the year fell 19.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 39.6% in FY24 as against 23.3% in FY23.
• Depreciation charges decreased by 5.5% and finance costs decreased by 20.8% YoY, respectively.
• Other income grew by 516.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 8.2% in FY23 to 29.5% in FY24.

HUBTOWN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,191	2,577	-19.2%
Other income	Rs m	169	1,043	516.9%
Total Revenues	Rs m	3,360	3,620	7.7%
Gross profit	Rs m	743	-1,021	NA
Depreciation	Rs m	32	30	-5.5%
Interest	Rs m	941	745	-20.8%
Profit before tax	Rs m	-61	-753	NA
Tax	Rs m	-323	7	NA
Profit after tax	Rs m	263	-760	NA
Gross profit margin	%	23.3	-39.6
Effective tax rate	%	534.0	-0.9
Net profit margin	%	8.2	-29.5

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HUBTOWN Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 32 billion as compared to Rs 31 billion in FY23, thereby witnessing an increase of 3.5%.
• Long-term debt stood at Rs 4 billion as compared to Rs 306 million during FY23, a growth of 1056.1%.
• Current assets rose 30% and stood at Rs 40 billion, while fixed assets fell 37% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 49 billion as against Rs 45 billion during FY23, thereby witnessing a growth of 9%.

HUBTOWN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,003	12,580	-3.2
Current Liabilities	Rs m	30,805	31,877	3.5
Long-term Debt	Rs m	306	3,542	1,056.1
Total Liabilities	Rs m	44,559	48,619	9.1
Current assets	Rs m	30,599	39,850	30.2
Fixed Assets	Rs m	13,960	8,769	-37.2
Total Assets	Rs m	44,559	48,619	9.1

HUBTOWN Cash Flow Statement Analysis

• HUBTOWN's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -809 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -268 million, an improvement of 82% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 531 million from the Rs 57 million net cash flows seen during FY23.

HUBTOWN Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-56	1,607	-
Cash Flow from Investing Activities	Rs m	1,564	-809	-
Cash Flow from Financing Activities	Rs m	-1,451	-268	-
Net Cash Flow	Rs m	57	531	837.4%

Current Valuations for HUBTOWN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -9.5, an decline from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 280.7, stands at -74.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 8.7 times.
• The company's price to cash flow (P/CF) ratio stood at -11.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	41.8	32.2
TTM Earnings per share	Rs	3.4	-9.5
Diluted earnings per share	Rs	2.0	-5.9
Price to Cash Flow	x	13.5	-11.0
TTM P/E ratio	x	15.2	-74.4
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	5,951	8,004
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HUBTOWN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.0x during FY23. 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 0.0x during FY24, from 0.9x during FY23. 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 -6.0% during FY24, from 2.0% during FY24. 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 0.0% during FY24, from 6.6% during FY23. 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 0.0% during FY24, from 2.7% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.0	1.3
Debtors’ Days	Days	2,316	2,702
Interest coverage	x	0.9	0.0
Debt to equity ratio	x	0.0	0.3
Return on assets	%	2.7	0.0
Return on equity	%	2.0	-6.0
Return on capital employed	%	6.6	0.0

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

HUBTOWN Share Price Performance

Over the last one year, HUBTOWN share price has moved up from Rs 70.6 to Rs 280.7, registering a gain of Rs 210.1 or around 297.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 7,550.0 (up 1.5%). Over the last one year it has moved up from 5,472.1 to 7,550.0, a gain of 2,078 points (up 38.0%).

Overall, the S&P BSE SENSEX is up 18.2% over the year.

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