HINDCON CHEMICALS 2022-23 Annual Report Analysis

Mon, 14 Aug

HINDCON CHEMICALS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

HINDCON CHEMICALS Income Statement Analysis

• Operating income during the year rose 28.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.0% in FY23 as against 7.5% in FY22.
• Depreciation charges increased by 13.4% and finance costs increased by 127.3% YoY, respectively.
• Other income declined by 15.2% YoY.
• Net profit for the year grew by 2.2% YoY.
• Net profit margins during the year declined from 6.4% in FY22 to 5.1% in FY23.

HINDCON CHEMICALS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	666	856	28.5%
Other income	Rs m	14	12	-15.2%
Total Revenues	Rs m	680	868	27.6%
Gross profit	Rs m	50	52	4.1%
Depreciation	Rs m	3	3	13.4%
Interest	Rs m	0	1	127.3%
Profit before tax	Rs m	61	60	-1.1%
Tax	Rs m	18	17	-8.8%
Profit after tax	Rs m	43	44	2.2%
Gross profit margin	%	7.5	6.0
Effective tax rate	%	30.0	27.7
Net profit margin	%	6.4	5.1

Dear Reader: If You Invest in Midcap Stocks, this is for You

HINDCON CHEMICALS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 105 million as compared to Rs 130 million in FY22, thereby witnessing an decrease of -19.5%.
• Current assets rose 3% and stood at Rs 477 million, while fixed assets fell 12% and stood at Rs 53 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 530 million as against Rs 523 million during FY22, thereby witnessing a growth of 1%.

HINDCON CHEMICALS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	391	423	8.2
Current Liabilities	Rs m	130	105	-19.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	523	530	1.3
Current assets	Rs m	463	477	3.0
Fixed Assets	Rs m	60	53	-11.8
Total Assets	Rs m	523	530	1.3

HINDCON CHEMICALS Cash Flow Statement Analysis

• HINDCON CHEMICALS's cash flow from operating activities (CFO) during FY23 stood at Rs 54 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -8 million, an improvement of 50% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 53 million from the Rs -43 million net cash flows seen during FY22.

HINDCON CHEMICALS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-44	54	-
Cash Flow from Investing Activities	Rs m	19	7	-60.4%
Cash Flow from Financing Activities	Rs m	-17	-8	-
Net Cash Flow	Rs m	-43	53	-

Current Valuations for HINDCON CHEMICALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.7, an improvement from the EPS of Rs 5.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 39.8, stands at 9.4 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 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	86.9	111.6
TTM Earnings per share	Rs	5.6	5.7
Diluted earnings per share	Rs	4.2	4.3
Price to Cash Flow	x	0.0	16.1
TTM P/E ratio	x	0.0	9.4
Price / Book Value ratio	x	0.7	1.8
Market Cap	Rs m	284	746
Dividends per share (Unadj.)	Rs	1.7	0.0

Ratio Analysis for HINDCON CHEMICALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.6x during FY23, from 3.6x during FY22. 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 121.5x during FY23, from 277.9x during FY22. 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 10.3% during FY23, from 10.9% during FY23. 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 14.3% during FY23, from 15.6% during FY22. 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 8.3% during FY23, from 8.2% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.6	4.6
Debtors’ Days	Days	1,444	1,116
Interest coverage	x	277.9	121.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	8.3
Return on equity	%	10.9	10.3
Return on capital employed	%	15.6	14.3

To see how HINDCON CHEMICALS has performed over the last 5 years, please visit here.

HINDCON CHEMICALS Share Price Performance

Over the last one year, HINDCON CHEMICALS share price has moved {{varPrevCurrYearUpDown}} from Rs {{varLastYearSameDayValue}} to Rs {{varCurrYearCurrDayValue}}, registering a {{varPrevCurrYearComp}} of Rs {{varPrevCurrYearCompValue}} or around {{varPrevCurrYearCompPerValue}}%.

Meanwhile, the{{varBSEIndexName}} is trading at Rs {{varBSEIndexValue}} ({{varBSEIndexPrevCurrComp}} {{varBSEIndexPrevCurrPerValue}}%). Over the last one year it has moved {{varBSEIndexPrevCurrYearComp}} from {{varBSEIndexPrevYearValue}} to {{varBSEIndexCurrentYearValue}}, a {{varBSEIndexPrevCurrGainLoss}} of {{varBSEIndexPrevCurrSubstraction}} points ({{varBSEIndexPrevCurrYearCompOverYear}} {{varBSEIndexPrevCurrPerValueOverYear}}%).

Overall, the {{varBSESensexName}} is {{varBSESensexCurrStatus}} {{varBSESensexCurrValue}}% over the year.

(To know more, check out historical annual results for HINDCON CHEMICALS and quarterly results for HINDCON CHEMICALS)