HINDUSTAN HOUSING COMPANY 2021-22 Annual Report Analysis

Mon, 7 Nov

HINDUSTAN HOUSING COMPANY has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HINDUSTAN HOUSING COMPANY Income Statement Analysis

• Operating income during the year rose 16.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.4% in FY22 as against 29.5% in FY21.
• Depreciation charges decreased by 25.9% and finance costs decreased by 6.4% YoY, respectively.
• Other income grew by 29.0% YoY.
• Net profit for the year grew by 40.9% YoY.
• Net profit margins during the year grew from 26.3% in FY21 to 31.7% in FY22.

HINDUSTAN HOUSING COMPANY Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	42	50	16.8%
Other income	Rs m	8	10	29.0%
Total Revenues	Rs m	50	60	18.7%
Gross profit	Rs m	13	14	12.4%
Depreciation	Rs m	4	3	-25.9%
Interest	Rs m	1	1	-6.4%
Profit before tax	Rs m	16	21	29.7%
Tax	Rs m	5	5	4.1%
Profit after tax	Rs m	11	16	40.9%
Gross profit margin	%	29.5	28.4
Effective tax rate	%	30.3	24.4
Net profit margin	%	26.3	31.7

Don't Miss: Key Information for Long-term Investors

HINDUSTAN HOUSING COMPANY Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 9 million as compared to Rs 6 million in FY21, thereby witnessing an increase of 41.5%.
• Current assets rose 13% and stood at Rs 115 million, while fixed assets rose 39% and stood at Rs 305 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 421 million as against Rs 321 million during FY21, thereby witnessing a growth of 31%.

HINDUSTAN HOUSING COMPANY Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	297	377	26.8
Current Liabilities	Rs m	6	9	41.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	321	421	30.8
Current assets	Rs m	102	115	13.5
Fixed Assets	Rs m	220	305	38.8
Total Assets	Rs m	321	421	30.8

HINDUSTAN HOUSING COMPANY Cash Flow Statement Analysis

• HINDUSTAN HOUSING COMPANY's cash flow from operating activities (CFO) during FY22 stood at Rs 11 million, an improvement of 47.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -11 million, an improvement of 82.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs 0 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 million from the Rs 1 million net cash flows seen during FY21.

HINDUSTAN HOUSING COMPANY Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	7	11	47.1%
Cash Flow from Investing Activities	Rs m	-6	-11	-
Cash Flow from Financing Activities	Rs m	0	0	0.0%
Net Cash Flow	Rs m	1	-1	-

Current Valuations for HINDUSTAN HOUSING COMPANY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 786.5, an improvement from the EPS of Rs 558.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 36.9, stands at 0.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 0.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	2,122.0	2,479.0
TTM Earnings per share	Rs	558.0	786.5
Diluted earnings per share	Rs	461.2	650.0
Price to Cash Flow	x	0.1	0.0
TTM P/E ratio	x	0.1	0.1
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	1	1
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HINDUSTAN HOUSING COMPANY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 12.9x during FY22, from 16.1x during FY21. 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 improved and stood at 29.5x during FY22, from 21.5x during FY21. 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 improved and stood at 4.2% during FY22, from 3.8% during FY22. 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 5.7% during FY22, from 5.6% during FY21. 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 3.9% during FY22, from 3.7% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	16.1	12.9
Debtors’ Days	Days	445	54
Interest coverage	x	21.5	29.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.7	3.9
Return on equity	%	3.8	4.2
Return on capital employed	%	5.6	5.7

To see how HINDUSTAN HOUSING COMPANY has performed over the last 5 years, please visit here.

HINDUSTAN HOUSING COMPANY Share Price Performance

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(To know more, check out historical annual results for HINDUSTAN HOUSING COMPANY and quarterly results for HINDUSTAN HOUSING COMPANY)