HATHWAY CABLE 2023-24 Annual Report Analysis

Tue, 16 Jul

HATHWAY CABLE 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.

HATHWAY CABLE Income Statement Analysis

• Operating income during the year rose 6.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.9% in FY24 as against 18.5% in FY23.
• Depreciation charges decreased by 0.8% and finance costs increased by 231.4% YoY, respectively.
• Other income grew by 35.1% YoY.
• Net profit for the year grew by 51.9% YoY.
• Net profit margins during the year grew from 3.5% in FY23 to 5.0% in FY24.

HATHWAY CABLE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,584	19,810	6.6%
Other income	Rs m	1,046	1,414	35.1%
Total Revenues	Rs m	19,631	21,224	8.1%
Gross profit	Rs m	3,432	3,555	3.6%
Depreciation	Rs m	3,571	3,542	-0.8%
Interest	Rs m	4	12	231.4%
Profit before tax	Rs m	904	1,416	56.5%
Tax	Rs m	251	423	68.6%
Profit after tax	Rs m	654	993	51.9%
Gross profit margin	%	18.5	17.9
Effective tax rate	%	27.7	29.9
Net profit margin	%	3.5	5.0

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HATHWAY CABLE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 2.8%.
• Long-term debt down at Rs 23 million as compared to Rs 34 million during FY23, a fall of 31.3%.
• Current assets rose 19% and stood at Rs 22 billion, while fixed assets fell 7% and stood at Rs 24 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 46 billion as against Rs 45 billion during FY23, thereby witnessing a growth of 4%.

HATHWAY CABLE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	41,831	42,896	2.5
Current Liabilities	Rs m	6,206	6,378	2.8
Long-term Debt	Rs m	34	23	-31.3
Total Liabilities	Rs m	44,678	46,445	4.0
Current assets	Rs m	18,629	22,091	18.6
Fixed Assets	Rs m	26,049	24,353	-6.5
Total Assets	Rs m	44,678	46,445	4.0

HATHWAY CABLE Cash Flow Statement Analysis

• HATHWAY CABLE's cash flow from operating activities (CFO) during FY24 stood at Rs -4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -14 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 2 billion net cash flows seen during FY23.

HATHWAY CABLE 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	4,534	-4,096	-
Cash Flow from Investing Activities	Rs m	-3,032	2,741	-
Cash Flow from Financing Activities	Rs m	0	-14	-
Net Cash Flow	Rs m	1,502	-1,368	-

Current Valuations for HATHWAY CABLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.9, stands at 70.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.9 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	10.5	11.2
TTM Earnings per share	Rs	0.4	0.6
Diluted earnings per share	Rs	0.4	0.6
Price to Cash Flow	x	5.4	7.9
TTM P/E ratio	x	90.0	70.1
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	30,189	35,871
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HATHWAY CABLE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY24, from 3.0x 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 123.0x during FY24, from 259.4x 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 improved and stood at 2.3% during FY24, from 1.6% 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 3.3% during FY24, from 2.2% 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 2.2% during FY24, from 1.5% 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	3.0	3.5
Debtors’ Days	Days	3	3
Interest coverage	x	259.4	123.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.5	2.2
Return on equity	%	1.6	2.3
Return on capital employed	%	2.2	3.3

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

HATHWAY CABLE Share Price Performance

Over the last one year, HATHWAY CABLE share price has moved up from Rs 15.3 to Rs 24.9, registering a gain of Rs 9.7 or around 63.2%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 18,285.9 (up 0.8%). Over the last one year it has moved up from 14,031.5 to 18,285.9, a gain of 4,254 points (up 30.3%).

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

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