HIGH ENERGY 2023-24 Annual Report Analysis

Mon, 20 May

HIGH ENERGY 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.

HIGH ENERGY Income Statement Analysis

• Operating income during the year fell 15.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 31.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 26.5% in FY24 as against 32.6% in FY23.
• Depreciation charges decreased by 18.0% and finance costs decreased by 37.6% YoY, respectively.
• Other income grew by 237.0% YoY.
• Net profit for the year declined by 16.3% YoY.
• Net profit margins during the year declined from 22.1% in FY23 to 22.0% in FY24.

HIGH ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	928	781	-15.8%
Other income	Rs m	16	54	237.0%
Total Revenues	Rs m	944	835	-11.6%
Gross profit	Rs m	302	207	-31.6%
Depreciation	Rs m	12	10	-18.0%
Interest	Rs m	31	20	-37.6%
Profit before tax	Rs m	275	231	-15.9%
Tax	Rs m	70	60	-14.9%
Profit after tax	Rs m	205	172	-16.3%
Gross profit margin	%	32.6	26.5
Effective tax rate	%	25.4	25.8
Net profit margin	%	22.1	22.0

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HIGH ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 168 million as compared to Rs 374 million in FY23, thereby witnessing an decrease of -55.2%.
• Current assets fell 9% and stood at Rs 674 million, while fixed assets rose 2% and stood at Rs 409 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 1 billion during FY23, thereby witnessing a fall of 5%.

HIGH ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	735	877	19.4
Current Liabilities	Rs m	374	168	-55.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,145	1,083	-5.4
Current assets	Rs m	743	674	-9.4
Fixed Assets	Rs m	402	409	1.8
Total Assets	Rs m	1,145	1,083	-5.4

HIGH ENERGY Cash Flow Statement Analysis

• HIGH ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 235 million, an improvement of 35.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -24 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -212 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs -37 million net cash flows seen during FY23.

HIGH ENERGY 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	173	235	35.9%
Cash Flow from Investing Activities	Rs m	-114	-24	-
Cash Flow from Financing Activities	Rs m	-95	-212	-
Net Cash Flow	Rs m	-37	-1	-

Current Valuations for HIGH ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.2, an decline from the EPS of Rs 22.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 831.7, stands at 43.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 9.5 times.
• The company's price to cash flow (P/CF) ratio stood at 26.3 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	103.6	87.2
TTM Earnings per share	Rs	22.9	19.2
Diluted earnings per share	Rs	22.9	19.1
Price to Cash Flow	x	13.3	26.3
TTM P/E ratio	x	14.1	43.4
Price / Book Value ratio	x	4.4	5.4
Market Cap	Rs m	3,235	4,762
Dividends per share (Unadj.)	Rs	3.5	3.0

Ratio Analysis for HIGH ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.0x during FY24, from 2.0x 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 improved and stood at 12.8x during FY24, from 9.7x 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 19.6% during FY24, from 27.9% 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 28.6% during FY24, from 41.7% 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 17.7% during FY24, from 20.6% 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	2.0	4.0
Debtors’ Days	Days	1,127	952
Interest coverage	x	9.7	12.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.6	17.7
Return on equity	%	27.9	19.6
Return on capital employed	%	41.7	28.6

To see how HIGH ENERGY has performed over the last 5 years, please visit here.

HIGH ENERGY Share Price Performance

Over the last one year, HIGH ENERGY share price has moved up from Rs 388.0 to Rs 831.7, registering a gain of Rs 443.7 or around 114.4%.

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for HIGH ENERGY and quarterly results for HIGH ENERGY)