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HERCULES HOISTS 2023-24 Annual Report Analysis

Tue, 23 Jul

HERCULES HOISTS 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.

HERCULES HOISTS Income Statement Analysis

• Operating income during the year rose 19.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 71.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.2% in FY24 as against 67.1% in FY23.
• Depreciation charges increased by 9.4% and finance costs increased by 0.9% YoY, respectively.
• Other income grew by 14.8% YoY.
• Net profit for the year declined by 65.2% YoY.
• Net profit margins during the year declined from 68.5% in FY23 to 20.0% in FY24.

HERCULES HOISTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,508	1,795	19.1%
Other income	Rs m	195	224	14.8%
Total Revenues	Rs m	1,703	2,019	18.6%
Gross profit	Rs m	1,011	291	-71.2%
Depreciation	Rs m	40	43	9.4%
Interest	Rs m	5	6	0.9%
Profit before tax	Rs m	1,161	466	-59.8%
Tax	Rs m	128	107	-16.8%
Profit after tax	Rs m	1,033	360	-65.2%
Gross profit margin	%	67.1	16.2
Effective tax rate	%	11.0	22.9
Net profit margin	%	68.5	20.0

For Investors: Our Big Prediction

HERCULES HOISTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 364 million as compared to Rs 294 million in FY23, thereby witnessing an increase of 23.8%.
• Current assets rose 30% and stood at Rs 1 billion, while fixed assets rose 37% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 36%.

HERCULES HOISTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,066	9,479	34.1
Current Liabilities	Rs m	294	364	23.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,738	10,506	35.8
Current assets	Rs m	907	1,176	29.7
Fixed Assets	Rs m	6,831	9,330	36.6
Total Assets	Rs m	7,738	10,506	35.8

HERCULES HOISTS Cash Flow Statement Analysis

• HERCULES HOISTS's cash flow from operating activities (CFO) during FY24 stood at Rs 284 million, an improvement of 142.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -219 million, an improvement of 4,196.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -99 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -34 million from the Rs 20 million net cash flows seen during FY23.

HERCULES HOISTS 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	117	284	142.8%
Cash Flow from Investing Activities	Rs m	-5	-219	-
Cash Flow from Financing Activities	Rs m	-92	-99	-
Net Cash Flow	Rs m	20	-34	-

Current Valuations for HERCULES HOISTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.2, an decline from the EPS of Rs 32.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 592.0, stands at 52.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 10.6 times.
• The company's price to cash flow (P/CF) ratio stood at 29.8 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	47.1	56.1
TTM Earnings per share	Rs	32.3	11.2
Diluted earnings per share	Rs	32.3	11.2
Price to Cash Flow	x	5.3	29.8
TTM P/E ratio	x	5.5	52.7
Price / Book Value ratio	x	0.8	1.3
Market Cap	Rs m	5,757	12,014
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for HERCULES HOISTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY24, from 3.1x 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 85.2x during FY24, from 212.5x 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 3.8% during FY24, from 14.6% 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 declined and down at 5.0% during FY24, from 16.5% 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 declined and down at 3.5% during FY24, from 13.4% 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	3.1	3.2
Debtors’ Days	Days	266	396
Interest coverage	x	212.5	85.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.4	3.5
Return on equity	%	14.6	3.8
Return on capital employed	%	16.5	5.0

To see how HERCULES HOISTS has performed over the last 5 years, please visit here.

HERCULES HOISTS Share Price Performance

Over the last one year, HERCULES HOISTS share price has moved up from Rs 300.4 to Rs 592.0, registering a gain of Rs 291.7 or around 97.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 70,999.4 (down 2.3%). Over the last one year it has moved up from 42,401.9 to 70,999.4, a gain of 28,597 points (up 67.4%).

Overall, the S&P BSE SENSEX is up 19.7% over the year.

(To know more, check out historical annual results for HERCULES HOISTS and quarterly results for HERCULES HOISTS)