HILTON METAL 2022-23 Annual Report Analysis

Thu, 19 Oct

HILTON METAL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

HILTON METAL Income Statement Analysis

• Operating income during the year rose 24.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 240.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.5% in FY23 as against 5.0% in FY22.
• Depreciation charges decreased by 7.0% and finance costs increased by 28.2% YoY, respectively.
• Other income grew by 1028.0% YoY.
• Net profit for the year grew by 232.6% YoY.
• Net profit margins during the year grew from 2.1% in FY22 to 5.6% in FY23.

HILTON METAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	841	1,048	24.6%
Other income	Rs m	1	6	1,028.0%
Total Revenues	Rs m	842	1,054	25.2%
Gross profit	Rs m	42	142	240.0%
Depreciation	Rs m	25	24	-7.0%
Interest	Rs m	42	54	28.2%
Profit before tax	Rs m	-25	70	NA
Tax	Rs m	-43	12	NA
Profit after tax	Rs m	18	59	232.6%
Gross profit margin	%	5.0	13.5
Effective tax rate	%	170.5	16.7
Net profit margin	%	2.1	5.6

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HILTON METAL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 641 million as compared to Rs 498 million in FY22, thereby witnessing an increase of 28.8%.
• Long-term debt down at Rs 152 million as compared to Rs 186 million during FY22, a fall of 18.2%.
• Current assets rose 77% and stood at Rs 1 billion, while fixed assets rose 9% and stood at Rs 482 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 1 billion during FY22, thereby witnessing a growth of 50%.

HILTON METAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	449	891	98.6
Current Liabilities	Rs m	498	641	28.8
Long-term Debt	Rs m	186	152	-18.2
Total Liabilities	Rs m	1,125	1,689	50.1
Current assets	Rs m	682	1,207	77.0
Fixed Assets	Rs m	443	482	8.7
Total Assets	Rs m	1,125	1,689	50.1

HILTON METAL Cash Flow Statement Analysis

• HILTON METAL's cash flow from operating activities (CFO) during FY23 stood at Rs -241 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 327 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -87 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 million from the Rs 3 million net cash flows seen during FY22.

HILTON METAL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	95	-241	-
Cash Flow from Investing Activities	Rs m	-85	327	-
Cash Flow from Financing Activities	Rs m	-7	-87	-
Net Cash Flow	Rs m	3	-1	-

Current Valuations for HILTON METAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.8, an improvement from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 150.6, stands at 48.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 18.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	67.6	49.9
TTM Earnings per share	Rs	1.4	2.8
Diluted earnings per share	Rs	0.8	2.8
Price to Cash Flow	x	14.9	18.4
TTM P/E ratio	x	194.7	48.3
Price / Book Value ratio	x	0.6	1.7
Market Cap	Rs m	270	1,510
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HILTON METAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.4x during FY22. 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 2.3x during FY23, from 0.4x during FY22. 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 6.6% during FY23, from 3.9% during FY23. 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 11.9% during FY23, from 2.7% during FY22. 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 6.6% during FY23, from 5.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.4	1.9
Debtors’ Days	Days	60	1,051
Interest coverage	x	0.4	2.3
Debt to equity ratio	x	0.4	0.2
Return on assets	%	5.3	6.6
Return on equity	%	3.9	6.6
Return on capital employed	%	2.7	11.9

To see how HILTON METAL has performed over the last 5 years, please visit here.

HILTON METAL Share Price Performance

Over the last one year, HILTON METAL share price has moved up from Rs 65.5 to Rs 150.6, registering a gain of Rs 85.1 or around 130.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 47,713.2 (down 0.0%). Over the last one year it has moved up from 32,267.4 to 47,713.2, a gain of 15,446 points (up 47.9%).

Overall, the S&P BSE SENSEX is up 12.5% over the year.

(To know more, check out historical annual results for HILTON METAL and quarterly results for HILTON METAL)