HIKAL. 2023-24 Annual Report Analysis

Fri, 23 Aug

HIKAL. 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.

HIKAL. Income Statement Analysis

• Operating income during the year fell 11.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.0% in FY24 as against 12.7% in FY23.
• Depreciation charges increased by 7.9% and finance costs increased by 17.2% YoY, respectively.
• Other income declined by 54.7% YoY.
• Net profit for the year declined by 11.2% YoY.
• Net profit margins during the year grew from 3.9% in FY23 to 3.9% in FY24.

HIKAL. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,230	17,846	-11.8%
Other income	Rs m	54	25	-54.7%
Total Revenues	Rs m	20,284	17,871	-11.9%
Gross profit	Rs m	2,571	2,670	3.9%
Depreciation	Rs m	1,090	1,176	7.9%
Interest	Rs m	481	564	17.2%
Profit before tax	Rs m	1,054	955	-9.4%
Tax	Rs m	270	259	-4.0%
Profit after tax	Rs m	784	696	-11.2%
Gross profit margin	%	12.7	15.0
Effective tax rate	%	25.6	27.1
Net profit margin	%	3.9	3.9

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HIKAL. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 14.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY23, a fall of 13.7%.
• Current assets rose 3% and stood at Rs 10 billion, while fixed assets rose 5% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 25 billion as against Rs 24 billion during FY23, thereby witnessing a growth of 4%.

HIKAL. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,335	11,877	4.8
Current Liabilities	Rs m	6,616	7,566	14.4
Long-term Debt	Rs m	4,899	4,229	-13.7
Total Liabilities	Rs m	23,855	24,871	4.3
Current assets	Rs m	9,390	9,666	2.9
Fixed Assets	Rs m	14,465	15,205	5.1
Total Assets	Rs m	23,855	24,871	4.3

HIKAL. Cash Flow Statement Analysis

• HIKAL.'s cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion 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 -270 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -140 million from the Rs 153 million net cash flows seen during FY23.

HIKAL. 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	3,153	1,867	-40.8%
Cash Flow from Investing Activities	Rs m	-2,923	-1,737	-
Cash Flow from Financing Activities	Rs m	-77	-270	-
Net Cash Flow	Rs m	153	-140	-

Current Valuations for HIKAL.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an decline from the EPS of Rs 6.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 334.9, stands at 60.9 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 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 19.3 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	164.1	144.7
TTM Earnings per share	Rs	6.4	5.6
Diluted earnings per share	Rs	6.4	5.6
Price to Cash Flow	x	18.5	19.3
TTM P/E ratio	x	44.3	60.9
Price / Book Value ratio	x	3.7	3.0
Market Cap	Rs m	41,420	36,201
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for HIKAL.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.4x 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 2.7x during FY24, from 3.2x 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 5.9% during FY24, from 6.9% 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 9.4% during FY24, from 9.5% 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 5.1% during FY24, from 5.3% 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	1.4	1.3
Debtors’ Days	Days	80	113
Interest coverage	x	3.2	2.7
Debt to equity ratio	x	0.4	0.4
Return on assets	%	5.3	5.1
Return on equity	%	6.9	5.9
Return on capital employed	%	9.5	9.4

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

HIKAL. Share Price Performance

Over the last one year, HIKAL. share price has moved up from Rs 291.9 to Rs 334.9, registering a gain of Rs 43.0 or around 14.7%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 42,177.5 (up 0.2%). Over the last one year it has moved up from 28,099.5 to 42,177.5, a gain of 14,078 points (up 50.1%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for HIKAL. and quarterly results for HIKAL.)