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H.G.INFRA ENGINEERING 2023-24 Annual Report Analysis

Thu, 1 Aug

H.G.INFRA ENGINEERING 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.

H.G.INFRA ENGINEERING Income Statement Analysis

• Operating income during the year rose 16.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.1% in FY24 as against 19.4% in FY23.
• Depreciation charges increased by 46.5% and finance costs increased by 41.0% YoY, respectively.
• Other income declined by 1.3% YoY.
• Net profit for the year grew by 9.2% YoY.
• Net profit margins during the year declined from 10.7% in FY23 to 10.0% in FY24.

H.G.INFRA ENGINEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	46,220	53,785	16.4%
Other income	Rs m	182	180	-1.3%
Total Revenues	Rs m	46,402	53,965	16.3%
Gross profit	Rs m	8,965	10,800	20.5%
Depreciation	Rs m	964	1,412	46.5%
Interest	Rs m	1,538	2,169	41.0%
Profit before tax	Rs m	6,646	7,399	11.3%
Tax	Rs m	1,714	2,013	17.5%
Profit after tax	Rs m	4,932	5,386	9.2%
Gross profit margin	%	19.4	20.1
Effective tax rate	%	25.8	27.2
Net profit margin	%	10.7	10.0

For Investors: Our Big Prediction

H.G.INFRA ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 18 billion as compared to Rs 16 billion in FY23, thereby witnessing an increase of 8.8%.
• Long-term debt down at Rs 11 billion as compared to Rs 15 billion during FY23, a fall of 26.3%.
• Current assets rose 10% and stood at Rs 29 billion, while fixed assets fell 3% and stood at Rs 23 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 56 billion as against Rs 51 billion during FY23, thereby witnessing a growth of 10%.

H.G.INFRA ENGINEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,219	24,550	27.7
Current Liabilities	Rs m	16,163	17,585	8.8
Long-term Debt	Rs m	14,820	10,925	-26.3
Total Liabilities	Rs m	50,793	56,010	10.3
Current assets	Rs m	26,742	29,390	9.9
Fixed Assets	Rs m	24,041	23,425	-2.6
Total Assets	Rs m	50,793	56,010	10.3

H.G.INFRA ENGINEERING Cash Flow Statement Analysis

• H.G.INFRA ENGINEERING's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion, an improvement of 123.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 170 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 256 million from the Rs 442 million net cash flows seen during FY23.

H.G.INFRA ENGINEERING 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	-1,393	-3,107	-
Cash Flow from Investing Activities	Rs m	-3,780	170	-
Cash Flow from Financing Activities	Rs m	5,615	3,193	-43.1%
Net Cash Flow	Rs m	442	256	-42.2%

Current Valuations for H.G.INFRA ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 82.6, an improvement from the EPS of Rs 75.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,615.0, stands at 19.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 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	709.2	825.3
TTM Earnings per share	Rs	75.7	82.6
Diluted earnings per share	Rs	75.7	82.6
Price to Cash Flow	x	8.6	8.6
TTM P/E ratio	x	10.3	19.6
Price / Book Value ratio	x	2.3	2.4
Market Cap	Rs m	43,389	58,771
Dividends per share (Unadj.)	Rs	1.3	1.5

Ratio Analysis for H.G.INFRA ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.7x 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 4.4x during FY24, from 5.3x 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 21.9% during FY24, from 25.7% 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 27.0% during FY24, from 24.0% 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 improved and stood at 13.5% during FY24, from 12.7% 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	1.7	1.7
Debtors’ Days	Days	58	46
Interest coverage	x	5.3	4.4
Debt to equity ratio	x	0.8	0.4
Return on assets	%	12.7	13.5
Return on equity	%	25.7	21.9
Return on capital employed	%	24.0	27.0

To see how H.G.INFRA ENGINEERING has performed over the last 5 years, please visit here.

H.G.INFRA ENGINEERING Share Price Performance

Over the last one year, H.G.INFRA ENGINEERING share price has moved up from Rs 933.4 to Rs 1,615.0, registering a gain of Rs 681.6 or around 73.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,643.9 (up 0.0%). Over the last one year it has moved up from 43,869.5 to 75,643.9, a gain of 31,774 points (up 72.4%).

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, check out historical annual results for H.G.INFRA ENGINEERING and quarterly results for H.G.INFRA ENGINEERING)