HATHWAY BHAWANI 2021-22 Annual Report Analysis

Wed, 8 Jun

HATHWAY BHAWANI has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HATHWAY BHAWANI Income Statement Analysis

• Operating income during the year fell 12.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 349.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.7% in FY22 as against 10.1% in FY21.
• Depreciation charges decreased by 2.8% and finance costs decreased by 100.0% YoY, respectively.
• Other income declined by 96.2% YoY.
• Net profit for the year declined by 19.6% YoY.
• Net profit margins during the year declined from 24.5% in FY21 to 22.5% in FY22.

HATHWAY BHAWANI Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	44	38	-12.5%
Other income	Rs m	21	1	-96.2%
Total Revenues	Rs m	64	39	-39.3%
Gross profit	Rs m	-4	11	-349.3%
Depreciation	Rs m	2	2	-2.8%
Interest	Rs m	1	0	-100.0%
Profit before tax	Rs m	14	10	-26.9%
Tax	Rs m	3	1	-52.2%
Profit after tax	Rs m	11	9	-19.6%
Gross profit margin	%	-10.1	28.7
Effective tax rate	%	21.9	14.4
Net profit margin	%	24.5	22.5

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HATHWAY BHAWANI Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 13 million as compared to Rs 26 million in FY21, thereby witnessing an decrease of -49.1%.
• Current assets fell 23% and stood at Rs 3 million, while fixed assets fell 13% and stood at Rs 18 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 20 million as against Rs 24 million during FY21, thereby witnessing a fall of 15%.

HATHWAY BHAWANI Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	8	16	99.3
Current Liabilities	Rs m	26	13	-49.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	24	20	-14.7
Current assets	Rs m	3	3	-23.0
Fixed Assets	Rs m	21	18	-13.3
Total Assets	Rs m	24	20	-14.7

HATHWAY BHAWANI Cash Flow Statement Analysis

• HATHWAY BHAWANI's cash flow from operating activities (CFO) during FY22 stood at Rs 0 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 0 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 0 million from the Rs 1 million net cash flows seen during FY21.

HATHWAY BHAWANI Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	14	0	-
Cash Flow from Investing Activities	Rs m	-1	0	-
Cash Flow from Financing Activities	Rs m	-13	0	-
Net Cash Flow	Rs m	1	0	-

Current Valuations for HATHWAY BHAWANI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.1, an decline from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 21.4, stands at 20.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.8 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	5.4	4.7
TTM Earnings per share	Rs	1.3	1.1
Diluted earnings per share	Rs	1.3	1.1
Price to Cash Flow	x	10.6	20.7
TTM P/E ratio	x	12.4	20.2
Price / Book Value ratio	x	26.6	13.2
Market Cap	Rs m	215	213
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HATHWAY BHAWANI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.2x during FY22, from 0.1x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 53.3% during FY22, from 132.3% during FY22. 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 62.2% during FY22, from 177.7% during FY21. 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 42.2% during FY22, from 47.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.1	0.2
Debtors’ Days	Days	73	88
Interest coverage	x	21.8	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	47.6	42.2
Return on equity	%	132.3	53.3
Return on capital employed	%	177.7	62.2

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

HATHWAY BHAWANI Share Price Performance

Over the last one year, HATHWAY BHAWANI share price has moved up from Rs 19.8 to Rs 21.4, registering a gain of Rs 1.7 or around 8.4%.

Overall, the S&P BSE SENSEX is up 5.6% over the year.

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