HMA AGRO INDUSTRIES 2023-24 Annual Report Analysis

Thu, 19 Sep

HMA AGRO INDUSTRIES 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.

HMA AGRO INDUSTRIES Income Statement Analysis

• Operating income during the year rose 45.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.7% in FY24 as against 4.9% in FY23.
• Depreciation charges decreased by 65.4% and finance costs increased by 5.8% YoY, respectively.
• Other income declined by 12.2% YoY.
• Net profit for the year declined by 10.3% YoY.
• Net profit margins during the year declined from 3.8% in FY23 to 2.4% in FY24.

HMA AGRO INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	32,092	46,651	45.4%
Other income	Rs m	469	411	-12.2%
Total Revenues	Rs m	32,561	47,062	44.5%
Gross profit	Rs m	1,576	1,256	-20.3%
Depreciation	Rs m	176	61	-65.4%
Interest	Rs m	133	141	5.8%
Profit before tax	Rs m	1,736	1,465	-15.6%
Tax	Rs m	501	358	-28.4%
Profit after tax	Rs m	1,235	1,107	-10.3%
Gross profit margin	%	4.9	2.7
Effective tax rate	%	28.9	24.5
Net profit margin	%	3.8	2.4

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HMA AGRO INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 22.9%.
• Current assets rose 65% and stood at Rs 10 billion, while fixed assets fell 17% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 31%.

HMA AGRO INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,743	7,370	55.4
Current Liabilities	Rs m	4,582	5,630	22.9
Long-term Debt	Rs m	423	0	-100.0
Total Liabilities	Rs m	9,908	13,008	31.3
Current assets	Rs m	5,827	9,610	64.9
Fixed Assets	Rs m	4,081	3,398	-16.7
Total Assets	Rs m	9,908	13,008	31.3

HMA AGRO INDUSTRIES Cash Flow Statement Analysis

• HMA AGRO INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -365 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 8,728% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 429 million from the Rs 504 million net cash flows seen during FY23.

HMA AGRO INDUSTRIES 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	1,361	-1,417	-
Cash Flow from Investing Activities	Rs m	-832	-365	-
Cash Flow from Financing Activities	Rs m	-26	2,210	-
Net Cash Flow	Rs m	504	429	-14.9%

Current Valuations for HMA AGRO INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an decline from the EPS of Rs 26.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 49.4, stands at 43.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 190.5 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	675.5	93.2
TTM Earnings per share	Rs	26.0	2.2
Diluted earnings per share	Rs	2.5	2.2
Price to Cash Flow	x	0.0	190.5
TTM P/E ratio	x	0.0	43.4
Price / Book Value ratio	x	0.0	30.2
Market Cap	Rs m	0	222,457
Dividends per share (Unadj.)	Rs	0.3	0.3

Ratio Analysis for HMA AGRO INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.3x 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 11.4x during FY24, from 14.1x 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 15.0% during FY24, from 26.0% 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 21.8% during FY24, from 36.2% 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 9.6% during FY24, from 13.8% 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	1.3	1.7
Debtors’ Days	Days	34	37
Interest coverage	x	14.1	11.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	13.8	9.6
Return on equity	%	26.0	15.0
Return on capital employed	%	36.2	21.8

To see how HMA AGRO INDUSTRIES has performed over the last 5 years, please visit here.

HMA AGRO INDUSTRIES Share Price Performance

Over the last one year, HMA AGRO INDUSTRIES share price has moved down from Rs 793.5 to Rs 49.4, registering a loss of Rs 744.1 or around 93.8%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for HMA AGRO INDUSTRIES and quarterly results for HMA AGRO INDUSTRIES)