HINDUJA GLOBAL 2023-24 Annual Report Analysis

Wed, 30 Oct

HINDUJA GLOBAL 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.

HINDUJA GLOBAL Income Statement Analysis

• Operating income during the year rose 2.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.8% in FY24 as against 6.2% in FY23.
• Depreciation charges increased by 17.2% and finance costs increased by 33.2% YoY, respectively.
• Other income declined by 5.9% YoY.
• Net profit for the year declined by 54.5% YoY.
• Net profit margins during the year declined from 6.4% in FY23 to 2.8% in FY24.

HINDUJA GLOBAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	45,052	46,157	2.5%
Other income	Rs m	5,015	4,721	-5.9%
Total Revenues	Rs m	50,067	50,878	1.6%
Gross profit	Rs m	2,807	3,602	28.3%
Depreciation	Rs m	4,554	5,339	17.2%
Interest	Rs m	1,410	1,879	33.2%
Profit before tax	Rs m	1,859	1,105	-40.6%
Tax	Rs m	-1,023	-207	NA
Profit after tax	Rs m	2,881	1,312	-54.5%
Gross profit margin	%	6.2	7.8
Effective tax rate	%	-55.0	-18.7
Net profit margin	%	6.4	2.8

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HINDUJA GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 28 billion as compared to Rs 19 billion in FY23, thereby witnessing an increase of 43.0%.
• Long-term debt stood at Rs 1 billion as compared to Rs 944 million during FY23, a growth of 41.4%.
• Current assets rose 26% and stood at Rs 64 billion, while fixed assets fell 24% and stood at Rs 54 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 118 billion as against Rs 122 billion during FY23, thereby witnessing a fall of 3%.

HINDUJA GLOBAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	85,465	74,877	-12.4
Current Liabilities	Rs m	19,230	27,507	43.0
Long-term Debt	Rs m	944	1,335	41.4
Total Liabilities	Rs m	121,510	117,598	-3.2
Current assets	Rs m	50,952	64,001	25.6
Fixed Assets	Rs m	70,557	53,596	-24.0
Total Assets	Rs m	121,510	117,598	-3.2

HINDUJA GLOBAL Cash Flow Statement Analysis

• HINDUJA GLOBAL's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 72.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion, an improvement of 27% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs -10 billion net cash flows seen during FY23.

HINDUJA GLOBAL 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	1,113	1,924	72.9%
Cash Flow from Investing Activities	Rs m	-882	1,736	-
Cash Flow from Financing Activities	Rs m	-11,078	-8,085	-
Net Cash Flow	Rs m	-9,645	-4,378	-

Current Valuations for HINDUJA GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.2, an decline from the EPS of Rs 54.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 770.6, stands at 62.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	857.8	992.2
TTM Earnings per share	Rs	54.9	28.2
Diluted earnings per share	Rs	61.9	28.2
Price to Cash Flow	x	6.4	6.6
TTM P/E ratio	x	16.6	62.3
Price / Book Value ratio	x	0.8	0.6
Market Cap	Rs m	66,836	44,080
Dividends per share (Unadj.)	Rs	15.0	7.0

Ratio Analysis for HINDUJA GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.6x 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 1.6x during FY24, from 2.3x 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 1.8% during FY24, from 3.4% 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 3.9% during FY24, from 3.8% 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 2.7% during FY24, from 3.5% 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	2.6	2.3
Debtors’ Days	Days	594	589
Interest coverage	x	2.3	1.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.5	2.7
Return on equity	%	3.4	1.8
Return on capital employed	%	3.8	3.9

To see how HINDUJA GLOBAL has performed over the last 5 years, please visit here.

HINDUJA GLOBAL Share Price Performance

Over the last one year, HINDUJA GLOBAL share price has moved down from Rs 948.4 to Rs 770.6, registering a loss of Rs 177.8 or around 18.7%.

Overall, the S&P BSE SENSEX is up 24.7% over the year.

(To know more, check out historical annual results for HINDUJA GLOBAL and quarterly results for HINDUJA GLOBAL)