HAPPY FORGINGS LTD. 2023-24 Annual Report Analysis

Mon, 8 Jul

HAPPY FORGINGS 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.

HAPPY FORGINGS LTD. Income Statement Analysis

• Operating income during the year rose 13.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.5% in FY24 as against 28.5% in FY23.
• Depreciation charges increased by 19.5% and finance costs decreased by 5.6% YoY, respectively.
• Other income grew by 132.6% YoY.
• Net profit for the year grew by 16.4% YoY.
• Net profit margins during the year grew from 17.4% in FY23 to 17.9% in FY24.

HAPPY FORGINGS LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,965	13,582	13.5%
Other income	Rs m	57	134	132.6%
Total Revenues	Rs m	12,023	13,716	14.1%
Gross profit	Rs m	3,409	3,875	13.7%
Depreciation	Rs m	542	647	19.5%
Interest	Rs m	125	118	-5.6%
Profit before tax	Rs m	2,800	3,244	15.8%
Tax	Rs m	713	814	14.1%
Profit after tax	Rs m	2,087	2,430	16.4%
Gross profit margin	%	28.5	28.5
Effective tax rate	%	25.5	25.1
Net profit margin	%	17.4	17.9

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HAPPY FORGINGS LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -5.8%.
• Current assets rose 52% and stood at Rs 7 billion, while fixed assets rose 37% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 42%.

HAPPY FORGINGS LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,883	16,068	62.6
Current Liabilities	Rs m	2,566	2,418	-5.8
Long-term Debt	Rs m	582	0	-100.0
Total Liabilities	Rs m	13,262	18,860	42.2
Current assets	Rs m	4,893	7,418	51.6
Fixed Assets	Rs m	8,362	11,442	36.8
Total Assets	Rs m	13,262	18,860	42.2

HAPPY FORGINGS LTD. Cash Flow Statement Analysis

• HAPPY FORGINGS LTD.'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 -5 billion, an improvement of 172.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 859% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 million from the Rs 0 million net cash flows seen during FY23.

HAPPY FORGINGS 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	2,095	1,890	-9.8%
Cash Flow from Investing Activities	Rs m	-1,725	-4,693	-
Cash Flow from Financing Activities	Rs m	-370	2,809	-
Net Cash Flow	Rs m	0	6	-

Current Valuations for HAPPY FORGINGS LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.8, an improvement from the EPS of Rs 23.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,271.1, stands at 49.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 29.1 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	133.7	144.2
TTM Earnings per share	Rs	23.3	25.8
Diluted earnings per share	Rs	22.2	25.8
Price to Cash Flow	x	0.0	29.1
TTM P/E ratio	x	0.0	49.3
Price / Book Value ratio	x	0.0	5.6
Market Cap	Rs m	0	89,561
Dividends per share (Unadj.)	Rs	0.0	4.0

Ratio Analysis for HAPPY FORGINGS LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x during FY24, from 1.9x 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 28.5x during FY24, from 23.4x 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 15.1% during FY24, from 21.1% 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 20.9% during FY24, from 28.0% 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 13.5% during FY24, from 16.7% 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	1.9	3.1
Debtors’ Days	Days	940	959
Interest coverage	x	23.4	28.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	16.7	13.5
Return on equity	%	21.1	15.1
Return on capital employed	%	28.0	20.9

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

HAPPY FORGINGS LTD. Share Price Performance

Over the last one year, HAPPY FORGINGS LTD. share price has moved up from Rs 0.0 to Rs 1,271.1, registering a gain of Rs 1,271.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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