HIND ALUMINIUM 2022-23 Annual Report Analysis

Mon, 14 Aug

HIND ALUMINIUM 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.

HIND ALUMINIUM Income Statement Analysis

• Operating income during the year fell 90.2% 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 688.2% in FY23 as against 9.2% in FY22.
• Depreciation charges decreased by 55.2% and finance costs decreased by 89.1% YoY, respectively.
• Other income grew by 857.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 32.4% in FY22 to 212.3% in FY23.

HIND ALUMINIUM Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	243	24	-90.2%
Other income	Rs m	14	130	857.2%
Total Revenues	Rs m	257	154	-40.0%
Gross profit	Rs m	-22	-164	NA
Depreciation	Rs m	22	10	-55.2%
Interest	Rs m	56	6	-89.1%
Profit before tax	Rs m	-87	-49	NA
Tax	Rs m	-8	1	NA
Profit after tax	Rs m	-79	-50	NA
Gross profit margin	%	-9.2	-688.2
Effective tax rate	%	8.9	-2.3
Net profit margin	%	-32.4	-212.3

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

HIND ALUMINIUM Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 25 million as compared to Rs 206 million in FY22, thereby witnessing an decrease of -87.7%.
• Current assets fell 52% and stood at Rs 172 million, while fixed assets fell 4% and stood at Rs 374 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 546 million as against Rs 748 million during FY22, thereby witnessing a fall of 27%.

HIND ALUMINIUM Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	573	576	0.5
Current Liabilities	Rs m	206	25	-87.7
Long-term Debt	Rs m	62	0	-100.0
Total Liabilities	Rs m	748	546	-27.1
Current assets	Rs m	359	172	-52.1
Fixed Assets	Rs m	390	374	-4.0
Total Assets	Rs m	748	546	-27.1

HIND ALUMINIUM Cash Flow Statement Analysis

• HIND ALUMINIUM's cash flow from operating activities (CFO) during FY23 stood at Rs 24 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 159 million, an improvement of 327.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -173 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 10 million from the Rs -6 million net cash flows seen during FY22.

HIND ALUMINIUM 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	127	24	-81.2%
Cash Flow from Investing Activities	Rs m	37	159	327.1%
Cash Flow from Financing Activities	Rs m	-170	-173	-
Net Cash Flow	Rs m	-6	10	-

Current Valuations for HIND ALUMINIUM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.0, an improvement from the EPS of Rs -12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.0, stands at -6.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.4 times, while the price to sales ratio stands at 10.1 times.
• The company's price to cash flow (P/CF) ratio stood at -6.3 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	38.6	3.8
TTM Earnings per share	Rs	-12.5	-8.0
Diluted earnings per share	Rs	-12.5	-8.0
Price to Cash Flow	x	-4.3	-6.3
TTM P/E ratio	x	-3.2	-6.9
Price / Book Value ratio	x	0.5	0.4
Market Cap	Rs m	263	258
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HIND ALUMINIUM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.7x during FY23, from 1.7x 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 -7.1x during FY23, from -0.5x 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 improved and stood at -8.8% during FY23, from -13.7% 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 -7.5% during FY23, from -4.8% 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 -8.1% during FY23, from -3.0% 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	1.7	6.7
Debtors’ Days	Days	1,137	1,093
Interest coverage	x	-0.5	-7.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	-3.0	-8.1
Return on equity	%	-13.7	-8.8
Return on capital employed	%	-4.8	-7.5

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

HIND ALUMINIUM Share Price Performance

Over the last one year, HIND ALUMINIUM share price has moved up from Rs 37.3 to Rs 38.0, registering a gain of Rs 0.7 or around 2.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 21,549.4 (down 1.5%). Over the last one year it has moved up from 19,240.0 to 21,549.4, a gain of 2,309 points (up 12.0%).

Overall, the S&P BSE SENSEX is up 10.6% over the year.

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