HERANBA INDUSTRIES 2023-24 Annual Report Analysis

Thu, 22 Aug

HERANBA INDUSTRIES 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.

HERANBA INDUSTRIES Income Statement Analysis

• Operating income during the year fell 4.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 50.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY24 as against 11.8% in FY23.
• Depreciation charges increased by 14.9% and finance costs increased by 55.5% YoY, respectively.
• Other income grew by 13.2% YoY.
• Net profit for the year declined by 66.9% YoY.
• Net profit margins during the year declined from 7.9% in FY23 to 2.7% in FY24.

HERANBA INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,188	12,571	-4.7%
Other income	Rs m	122	138	13.2%
Total Revenues	Rs m	13,310	12,709	-4.5%
Gross profit	Rs m	1,560	769	-50.7%
Depreciation	Rs m	227	261	14.9%
Interest	Rs m	79	124	55.5%
Profit before tax	Rs m	1,376	522	-62.0%
Tax	Rs m	332	177	-46.6%
Profit after tax	Rs m	1,044	345	-66.9%
Gross profit margin	%	11.8	6.1
Effective tax rate	%	24.1	34.0
Net profit margin	%	7.9	2.7

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

HERANBA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 74.1%.
• Long-term debt stood at Rs 179 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 0% and stood at Rs 8 billion, while fixed assets rose 100% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 27%.

HERANBA INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,104	8,431	4.0
Current Liabilities	Rs m	3,394	5,910	74.1
Long-term Debt	Rs m	0	179	0.0
Total Liabilities	Rs m	11,544	14,610	26.6
Current assets	Rs m	8,442	8,405	-0.4
Fixed Assets	Rs m	3,102	6,205	100.0
Total Assets	Rs m	11,544	14,610	26.6

HERANBA INDUSTRIES Cash Flow Statement Analysis

• HERANBA INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 0.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 0.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 620 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -716 million from the Rs 0 million net cash flows seen during FY23.

HERANBA INDUSTRIES 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	0	1,072	0.0%
Cash Flow from Investing Activities	Rs m	0	-2,409	-
Cash Flow from Financing Activities	Rs m	0	620	0.0%
Net Cash Flow	Rs m	0	-716	-

Current Valuations for HERANBA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.6, an decline from the EPS of Rs 26.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 472.5, stands at 33.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 23.3 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	329.6	314.2
TTM Earnings per share	Rs	26.1	8.6
Diluted earnings per share	Rs	26.1	8.6
Price to Cash Flow	x	8.8	23.3
TTM P/E ratio	x	10.7	33.3
Price / Book Value ratio	x	2.3	1.7
Market Cap	Rs m	18,741	14,148
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for HERANBA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 2.5x 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 5.2x during FY24, from 18.3x 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 4.1% during FY24, from 12.9% 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 7.5% during FY24, from 18.0% 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 3.2% during FY24, from 9.7% 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	2.5	1.4
Debtors’ Days	Days	11	14
Interest coverage	x	18.3	5.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.7	3.2
Return on equity	%	12.9	4.1
Return on capital employed	%	18.0	7.5

To see how HERANBA INDUSTRIES has performed over the last 5 years, please visit here.

HERANBA INDUSTRIES Share Price Performance

Over the last one year, HERANBA INDUSTRIES share price has moved up from Rs 340.1 to Rs 472.5, registering a gain of Rs 132.4 or around 38.9%.

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for HERANBA INDUSTRIES and quarterly results for HERANBA INDUSTRIES)