HAWKINS COOKERS 2023-24 Annual Report Analysis

Tue, 16 Jul

HAWKINS COOKERS 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.

HAWKINS COOKERS Income Statement Analysis

• Operating income during the year rose 1.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.7% in FY24 as against 13.5% in FY23.
• Depreciation charges increased by 12.5% and finance costs decreased by 6.4% YoY, respectively.
• Other income grew by 154.4% YoY.
• Net profit for the year grew by 15.9% YoY.
• Net profit margins during the year grew from 9.4% in FY23 to 10.7% in FY24.

HAWKINS COOKERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,058	10,242	1.8%
Other income	Rs m	42	106	154.4%
Total Revenues	Rs m	10,100	10,347	2.5%
Gross profit	Rs m	1,353	1,502	11.0%
Depreciation	Rs m	77	87	12.5%
Interest	Rs m	49	46	-6.4%
Profit before tax	Rs m	1,269	1,475	16.3%
Tax	Rs m	321	377	17.4%
Profit after tax	Rs m	948	1,098	15.9%
Gross profit margin	%	13.5	14.7
Effective tax rate	%	25.3	25.6
Net profit margin	%	9.4	10.7

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HAWKINS COOKERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 10.4%.
• Long-term debt down at Rs 135 million as compared to Rs 208 million during FY23, a fall of 35.1%.
• Current assets rose 14% and stood at Rs 4 billion, while fixed assets rose 16% and stood at Rs 984 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 14%.

HAWKINS COOKERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,761	3,335	20.8
Current Liabilities	Rs m	1,538	1,698	10.4
Long-term Debt	Rs m	208	135	-35.1
Total Liabilities	Rs m	4,592	5,253	14.4
Current assets	Rs m	3,746	4,269	14.0
Fixed Assets	Rs m	847	984	16.3
Total Assets	Rs m	4,592	5,253	14.4

HAWKINS COOKERS Cash Flow Statement Analysis

• HAWKINS COOKERS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 88.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 118.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -701 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 million from the Rs 115 million net cash flows seen during FY23.

HAWKINS COOKERS 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	923	1,743	88.9%
Cash Flow from Investing Activities	Rs m	-475	-1,036	-
Cash Flow from Financing Activities	Rs m	-332	-701	-
Net Cash Flow	Rs m	115	6	-94.5%

Current Valuations for HAWKINS COOKERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 207.6, an improvement from the EPS of Rs 179.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,640.5, stands at 41.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.7 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 30.7 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	1,901.3	1,936.0
TTM Earnings per share	Rs	179.2	207.6
Diluted earnings per share	Rs	179.2	207.7
Price to Cash Flow	x	31.8	30.7
TTM P/E ratio	x	34.3	41.6
Price / Book Value ratio	x	11.0	10.9
Market Cap	Rs m	30,418	36,342
Dividends per share (Unadj.)	Rs	100.0	120.0

Ratio Analysis for HAWKINS COOKERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.4x 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 33.4x during FY24, from 27.1x 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 32.9% during FY24, from 34.3% 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 declined and down at 43.8% during FY24, from 44.4% 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 improved and stood at 21.8% during FY24, from 21.7% 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	2.4	2.5
Debtors’ Days	Days	172	170
Interest coverage	x	27.1	33.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	21.7	21.8
Return on equity	%	34.3	32.9
Return on capital employed	%	44.4	43.8

To see how HAWKINS COOKERS has performed over the last 5 years, please visit here.

HAWKINS COOKERS Share Price Performance

Over the last one year, HAWKINS COOKERS share price has moved up from Rs 6,589.4 to Rs 8,640.5, registering a gain of Rs 2,051.1 or around 31.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 59,167.5 (up 0.0%). Over the last one year it has moved up from 42,805.6 to 59,167.5, a gain of 16,362 points (up 38.2%).

Overall, the S&P BSE SENSEX is up 23.4% over the year.

(To know more, check out historical annual results for HAWKINS COOKERS and quarterly results for HAWKINS COOKERS)