HI-TECH PIPES 2023-24 Annual Report Analysis

Tue, 3 Sep

HI-TECH PIPES 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.

HI-TECH PIPES Income Statement Analysis

• Operating income during the year rose 13.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.3% in FY24 as against 4.1% in FY23.
• Depreciation charges increased by 12.5% and finance costs increased by 18.6% YoY, respectively.
• Other income declined by 47.9% YoY.
• Net profit for the year grew by 16.6% YoY.
• Net profit margins during the year grew from 1.6% in FY23 to 1.6% in FY24.

HI-TECH PIPES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,858	26,993	13.1%
Other income	Rs m	23	12	-47.9%
Total Revenues	Rs m	23,881	27,005	13.1%
Gross profit	Rs m	967	1,149	18.8%
Depreciation	Rs m	138	155	12.5%
Interest	Rs m	353	419	18.6%
Profit before tax	Rs m	499	587	17.6%
Tax	Rs m	122	148	20.9%
Profit after tax	Rs m	377	439	16.6%
Gross profit margin	%	4.1	4.3
Effective tax rate	%	24.5	25.1
Net profit margin	%	1.6	1.6

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

HI-TECH PIPES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 22.9%.
• Long-term debt stood at Rs 1 billion as compared to Rs 940 million during FY23, a growth of 13.2%.
• Current assets rose 29% and stood at Rs 7 billion, while fixed assets rose 27% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 29%.

HI-TECH PIPES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,311	5,275	59.3
Current Liabilities	Rs m	3,840	4,721	22.9
Long-term Debt	Rs m	940	1,065	13.2
Total Liabilities	Rs m	9,216	11,849	28.6
Current assets	Rs m	5,574	7,218	29.5
Fixed Assets	Rs m	3,642	4,631	27.2
Total Assets	Rs m	9,216	11,849	28.6

HI-TECH PIPES Cash Flow Statement Analysis

• HI-TECH PIPES's cash flow from operating activities (CFO) during FY24 stood at Rs -952 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 19.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 715% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 million from the Rs 10 million net cash flows seen during FY23.

HI-TECH PIPES 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	1,337	-952	-
Cash Flow from Investing Activities	Rs m	-982	-1,171	-
Cash Flow from Financing Activities	Rs m	-346	2,128	-
Net Cash Flow	Rs m	10	4	-54.9%

Current Valuations for HI-TECH PIPES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 2.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 188.9, stands at 61.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 30.4 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	186.7	180.1
TTM Earnings per share	Rs	2.9	2.9
Diluted earnings per share	Rs	2.1	2.5
Price to Cash Flow	x	0.0	30.4
TTM P/E ratio	x	0.0	61.6
Price / Book Value ratio	x	20.4	3.4
Market Cap	Rs m	67,673	18,061
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HI-TECH PIPES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.5x 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 2.4x during FY24, from 2.4x 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 8.3% during FY24, from 11.4% 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 declined and down at 15.9% during FY24, from 20.0% 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 declined and down at 7.2% during FY24, from 7.9% 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	1.5	1.5
Debtors’ Days	Days	284	379
Interest coverage	x	2.4	2.4
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.9	7.2
Return on equity	%	11.4	8.3
Return on capital employed	%	20.0	15.9

To see how HI-TECH PIPES has performed over the last 5 years, please visit here.

HI-TECH PIPES Share Price Performance

Over the last one year, HI-TECH PIPES share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,943.7 (down 0.4%). Over the last one year it has moved up from 22,542.1 to 31,943.7, a gain of 9,402 points (up 41.7%).

Overall, the NIFTY 50 is down 0.0% over the year.

(To know more, check out historical annual results for HI-TECH PIPES and quarterly results for HI-TECH PIPES)