BHARTI HEXACOM LTD. 2023-24 Annual Report Analysis

Mon, 12 Aug

BHARTI HEXACOM LTD. 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.

BHARTI HEXACOM LTD. Income Statement Analysis

• Operating income during the year rose 7.7% 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 down at 43.1% in FY24 as against 42.3% in FY23.
• Depreciation charges increased by 12.0% and finance costs increased by 0.9% YoY, respectively.
• Other income grew by 77.4% YoY.
• Net profit for the year declined by 8.2% YoY.
• Net profit margins during the year declined from 8.3% in FY23 to 7.1% in FY24.

BHARTI HEXACOM LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	65,790	70,888	7.7%
Other income	Rs m	1,402	2,487	77.4%
Total Revenues	Rs m	67,192	73,375	9.2%
Gross profit	Rs m	27,857	30,582	9.8%
Depreciation	Rs m	15,533	17,392	12.0%
Interest	Rs m	6,388	6,444	0.9%
Profit before tax	Rs m	7,338	9,233	25.8%
Tax	Rs m	1,846	4,189	126.9%
Profit after tax	Rs m	5,492	5,044	-8.2%
Gross profit margin	%	42.3	43.1
Effective tax rate	%	25.2	45.4
Net profit margin	%	8.3	7.1

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BHARTI HEXACOM LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 76 billion as compared to Rs 61 billion in FY23, thereby witnessing an increase of 22.9%.
• Long-term debt down at Rs 28 billion as compared to Rs 47 billion during FY23, a fall of 41.0%.
• Current assets fell 17% and stood at Rs 24 billion, while fixed assets rose 5% and stood at Rs 153 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 177 billion as against Rs 175 billion during FY23, thereby witnessing a growth of 1%.

BHARTI HEXACOM LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	42,095	46,387	10.2
Current Liabilities	Rs m	61,421	75,512	22.9
Long-term Debt	Rs m	47,299	27,924	-41.0
Total Liabilities	Rs m	174,900	176,596	1.0
Current assets	Rs m	28,976	23,972	-17.3
Fixed Assets	Rs m	145,924	152,624	4.6
Total Assets	Rs m	174,900	176,596	1.0

BHARTI HEXACOM LTD. Cash Flow Statement Analysis

• BHARTI HEXACOM LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 35 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -12 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -24 billion, an improvement of 23% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -126 million from the Rs -339 million net cash flows seen during FY23.

BHARTI HEXACOM LTD. 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	51,084	35,461	-30.6%
Cash Flow from Investing Activities	Rs m	-20,309	-11,551	-
Cash Flow from Financing Activities	Rs m	-31,114	-24,036	-
Net Cash Flow	Rs m	-339	-126	-

Current Valuations for BHARTI HEXACOM LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an decline from the EPS of Rs 22.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,125.4, stands at 111.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.1 times, while the price to sales ratio stands at 7.9 times.
• The company's price to cash flow (P/CF) ratio stood at 25.1 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	263.2	141.8
TTM Earnings per share	Rs	22.0	10.1
Diluted earnings per share	Rs	11.0	10.1
Price to Cash Flow	x	0.0	25.1
TTM P/E ratio	x	0.0	111.6
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	562,700
Dividends per share (Unadj.)	Rs	1.5	4.0

Ratio Analysis for BHARTI HEXACOM LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY24, from 0.5x 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 improved and stood at 2.4x during FY24, from 2.1x 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 10.9% during FY24, from 13.0% 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 improved and stood at 21.1% during FY24, from 15.4% 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 6.5% during FY24, from 6.8% 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	0.5	0.3
Debtors’ Days	Days	8	23
Interest coverage	x	2.1	2.4
Debt to equity ratio	x	1.1	0.6
Return on assets	%	6.8	6.5
Return on equity	%	13.0	10.9
Return on capital employed	%	15.4	21.1

To see how BHARTI HEXACOM LTD. has performed over the last 5 years, please visit here.

BHARTI HEXACOM LTD. Share Price Performance

Over the last one year, BHARTI HEXACOM LTD. share price has moved up from Rs 0.0 to Rs 1,125.4, registering a gain of Rs 1,125.4 or around 0.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 18,305.2 (down 0.3%). Over the last one year it has moved up from 13,889.6 to 18,305.2, a gain of 4,416 points (up 31.8%).

Overall, the S&P BSE SENSEX is up 20.7% over the year.

(To know more, check out historical annual results for BHARTI HEXACOM LTD. and quarterly results for BHARTI HEXACOM LTD.)