HMT 2023-24 Annual Report Analysis

Fri, 29 Nov

HMT 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.

HMT Income Statement Analysis

• Operating income during the year fell 19.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 66.5% in FY24 as against 44.8% in FY23.
• Depreciation charges decreased by 11.2% and finance costs decreased by 1.4% YoY, respectively.
• Other income declined by 1.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 60.1% in FY23 to 78.2% in FY24.

HMT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,077	1,664	-19.9%
Other income	Rs m	546	540	-1.2%
Total Revenues	Rs m	2,624	2,204	-16.0%
Gross profit	Rs m	-931	-1,107	NA
Depreciation	Rs m	93	83	-11.2%
Interest	Rs m	690	681	-1.4%
Profit before tax	Rs m	-1,168	-1,330	NA
Tax	Rs m	80	-29	NA
Profit after tax	Rs m	-1,248	-1,301	NA
Gross profit margin	%	-44.8	-66.5
Effective tax rate	%	-6.8	2.2
Net profit margin	%	-60.1	-78.2

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HMT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 23 billion as compared to Rs 50 billion in FY23, thereby witnessing an decrease of -53.1%.
• Current assets fell 12% and stood at Rs 6 billion, while fixed assets fell 25% and stood at Rs 520 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 7 billion during FY23, thereby witnessing a fall of 13%.

HMT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-43,031	-17,520	NA
Current Liabilities	Rs m	49,629	23,261	-53.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,998	6,091	-13.0
Current assets	Rs m	6,276	5,542	-11.7
Fixed Assets	Rs m	692	520	-24.9
Total Assets	Rs m	6,998	6,091	-13.0

HMT Cash Flow Statement Analysis

• HMT's cash flow from operating activities (CFO) during FY24 stood at Rs -8 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -440 million, an improvement of 58.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 8 billion, an improvement of 22,975% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -630 million from the Rs 788 million net cash flows seen during FY23.

HMT 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	1,029	-8,468	-
Cash Flow from Investing Activities	Rs m	-277	-440	-
Cash Flow from Financing Activities	Rs m	36	8,277	22,975.4%
Net Cash Flow	Rs m	788	-630	-

Current Valuations for HMT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.7, an decline from the EPS of Rs -3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 62.5, stands at -59.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -4.3 times, while the price to sales ratio stands at 13.4 times.
• The company's price to cash flow (P/CF) ratio stood at -14.4 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	5.8	4.7
TTM Earnings per share	Rs	-3.5	-3.7
Diluted earnings per share	Rs	-1.0	-1.1
Price to Cash Flow	x	-25.5	-14.4
TTM P/E ratio	x	-23.6	-59.1
Price / Book Value ratio	x	-0.3	-1.0
Market Cap	Rs m	11,095	17,513
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HMT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.2x during FY24, from 0.1x 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 -1.0x during FY24, from -0.7x 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 improved and stood at 7.4% during FY24, from 2.9% 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 improved and stood at 3.7% during FY24, from 1.1% 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 -10.2% during FY24, from -8.0% 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	0.1	0.2
Debtors’ Days	Days	3,264	2,938
Interest coverage	x	-0.7	-1.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-8.0	-10.2
Return on equity	%	2.9	7.4
Return on capital employed	%	1.1	3.7

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

HMT Share Price Performance

Over the last one year, HMT share price has moved up from Rs 49.3 to Rs 62.5, registering a gain of Rs 13.2 or around 26.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 62,469.2 (up 0.9%). Over the last one year it has moved up from 46,371.6 to 62,469.2, a gain of 16,098 points (up 34.7%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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