HARIOM PIPE 2023-24 Annual Report Analysis

Wed, 18 Sep

HARIOM PIPE 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.

HARIOM PIPE Income Statement Analysis

• Operating income during the year rose 82.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 69.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.6% in FY24 as against 15.8% in FY23.
• Depreciation charges increased by 259.3% and finance costs increased by 213.7% YoY, respectively.
• Other income grew by 594.8% YoY.
• Net profit for the year grew by 22.9% YoY.
• Net profit margins during the year declined from 8.9% in FY23 to 6.0% in FY24.

HARIOM PIPE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,188	9,463	82.4%
Other income	Rs m	7	52	594.8%
Total Revenues	Rs m	5,196	9,515	83.1%
Gross profit	Rs m	819	1,386	69.3%
Depreciation	Rs m	94	339	259.3%
Interest	Rs m	104	326	213.7%
Profit before tax	Rs m	628	774	23.1%
Tax	Rs m	166	206	23.7%
Profit after tax	Rs m	462	568	22.9%
Gross profit margin	%	15.8	14.6
Effective tax rate	%	26.5	26.6
Net profit margin	%	8.9	6.0

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HARIOM PIPE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 41.1%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 4.4%.
• Current assets rose 12% and stood at Rs 5 billion, while fixed assets rose 43% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 24%.

HARIOM PIPE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,461	4,459	28.8
Current Liabilities	Rs m	2,030	2,866	41.1
Long-term Debt	Rs m	1,252	1,197	-4.4
Total Liabilities	Rs m	7,092	8,802	24.1
Current assets	Rs m	4,297	4,816	12.1
Fixed Assets	Rs m	2,795	3,987	42.6
Total Assets	Rs m	7,092	8,802	24.1

HARIOM PIPE Cash Flow Statement Analysis

• HARIOM PIPE's cash flow from operating activities (CFO) during FY24 stood at Rs 50 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 744 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY23.

HARIOM PIPE 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	-1,006	50	-
Cash Flow from Investing Activities	Rs m	-2,215	-1,816	-
Cash Flow from Financing Activities	Rs m	4,261	744	-82.5%
Net Cash Flow	Rs m	1,040	-1,023	-

Current Valuations for HARIOM PIPE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.7, an improvement from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 725.9, stands at 38.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.8 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	187.8	327.8
TTM Earnings per share	Rs	16.7	19.7
Diluted earnings per share	Rs	14.9	18.3
Price to Cash Flow	x	26.4	18.8
TTM P/E ratio	x	31.8	38.2
Price / Book Value ratio	x	2.7	3.8
Market Cap	Rs m	9,349	17,046
Dividends per share (Unadj.)	Rs	0.0	0.6

Ratio Analysis for HARIOM PIPE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 2.1x 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 deteriorated and stood at 3.4x during FY24, from 7.1x 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 12.7% during FY24, from 13.3% 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 19.4% during FY24, from 15.5% 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 improved and stood at 10.2% during FY24, from 8.0% 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	2.1	1.7
Debtors’ Days	Days	606	471
Interest coverage	x	7.1	3.4
Debt to equity ratio	x	0.4	0.3
Return on assets	%	8.0	10.2
Return on equity	%	13.3	12.7
Return on capital employed	%	15.5	19.4

To see how HARIOM PIPE has performed over the last 5 years, please visit here.

HARIOM PIPE Share Price Performance

Over the last one year, HARIOM PIPE share price has moved up from Rs 578.6 to Rs 725.9, registering a gain of Rs 147.4 or around 25.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,813.2 (down 0.3%). Over the last one year it has moved up from 23,270.6 to 31,813.2, a gain of 8,543 points (up 36.7%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for HARIOM PIPE and quarterly results for HARIOM PIPE)