HARDWYN INDIA 2022-23 Annual Report Analysis

Fri, 31 Mar

HARDWYN INDIA 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.

HARDWYN INDIA Income Statement Analysis

• Operating income during the year rose 94.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 208.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.6% in FY23 as against 6.1% in FY22.
• Depreciation charges increased by 153.9% and finance costs increased by 47.8% YoY, respectively.
• Other income grew by 160.1% YoY.
• Net profit for the year grew by 239.5% YoY.
• Net profit margins during the year grew from 4.0% in FY22 to 7.0% in FY23.

HARDWYN INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	846	1,647	94.7%
Other income	Rs m	3	7	160.1%
Total Revenues	Rs m	848	1,654	94.9%
Gross profit	Rs m	51	158	208.0%
Depreciation	Rs m	1	3	153.9%
Interest	Rs m	6	9	47.8%
Profit before tax	Rs m	47	154	226.3%
Tax	Rs m	13	38	192.2%
Profit after tax	Rs m	34	116	239.5%
Gross profit margin	%	6.1	9.6
Effective tax rate	%	27.8	24.9
Net profit margin	%	4.0	7.0

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HARDWYN INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 409 million as compared to Rs 417 million in FY22, thereby witnessing an decrease of -1.8%.
• Long-term debt stood at Rs 0 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets rose 27% and stood at Rs 712 million, while fixed assets rose 45,542% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 570 million during FY22, thereby witnessing a growth of 633%.

HARDWYN INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	153	3,726	2,327.6
Current Liabilities	Rs m	417	409	-1.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	570	4,181	633.3
Current assets	Rs m	563	712	26.5
Fixed Assets	Rs m	8	3,469	45,541.8
Total Assets	Rs m	570	4,181	633.3

HARDWYN INDIA Cash Flow Statement Analysis

• HARDWYN INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs -10 million, an improvement of 463.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 15 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 2 million net cash flows seen during FY22.

HARDWYN INDIA 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	-10	-
Cash Flow from Investing Activities	Rs m	-7	-4	-
Cash Flow from Financing Activities	Rs m	11	15	34.0%
Net Cash Flow	Rs m	2	0	-79.5%

Current Valuations for HARDWYN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an improvement from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 19.2, stands at 74.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 3.5 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	82.9	62.9
TTM Earnings per share	Rs	3.3	4.4
Diluted earnings per share	Rs	0.1	0.3
Price to Cash Flow	x	48.5	3.5
TTM P/E ratio	x	50.1	74.0
Price / Book Value ratio	x	3.7	0.1
Market Cap	Rs m	562	413
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HARDWYN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.3x 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 improved and stood at 18.9x during FY23, from 9.1x 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 3.1% during FY23, from 22.2% 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 4.4% during FY23, from 34.5% 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 3.0% during FY23, from 7.0% 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	1.3	1.7
Debtors’ Days	Days	1,314	555
Interest coverage	x	9.1	18.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.0	3.0
Return on equity	%	22.2	3.1
Return on capital employed	%	34.5	4.4

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

HARDWYN INDIA Share Price Performance

Over the last one year, HARDWYN INDIA share price has moved up from Rs 4.9 to Rs 19.2, registering a gain of Rs 14.3 or around 292.0%.

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

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