HIND.COMPOSI 2023-24 Annual Report Analysis

Tue, 24 Sep

HIND.COMPOSI 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.

HIND.COMPOSI Income Statement Analysis

• Operating income during the year rose 5.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY24 as against 14.4% in FY23.
• Depreciation charges increased by 9.1% and finance costs decreased by 29.1% YoY, respectively.
• Other income grew by 9.5% YoY.
• Net profit for the year grew by 25.3% YoY.
• Net profit margins during the year grew from 9.7% in FY23 to 11.6% in FY24.

HIND.COMPOSI Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,827	2,977	5.3%
Other income	Rs m	8	9	9.5%
Total Revenues	Rs m	2,835	2,986	5.3%
Gross profit	Rs m	406	513	26.3%
Depreciation	Rs m	87	95	9.1%
Interest	Rs m	1	1	-29.1%
Profit before tax	Rs m	326	426	30.7%
Tax	Rs m	51	82	59.8%
Profit after tax	Rs m	275	344	25.3%
Gross profit margin	%	14.4	17.2
Effective tax rate	%	15.7	19.2
Net profit margin	%	9.7	11.6

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HIND.COMPOSI Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 624 million as compared to Rs 481 million in FY23, thereby witnessing an increase of 29.7%.
• Long-term debt down at Rs 0 million as compared to Rs 1 million during FY23, a fall of 73.9%.
• Current assets rose 6% and stood at Rs 1 billion, while fixed assets rose 10% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 9%.

HIND.COMPOSI Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,208	9,867	7.1
Current Liabilities	Rs m	481	624	29.7
Long-term Debt	Rs m	1	0	-73.9
Total Liabilities	Rs m	10,011	10,928	9.2
Current assets	Rs m	1,139	1,211	6.3
Fixed Assets	Rs m	8,872	9,717	9.5
Total Assets	Rs m	10,011	10,928	9.2

HIND.COMPOSI Cash Flow Statement Analysis

• HIND.COMPOSI's cash flow from operating activities (CFO) during FY24 stood at Rs 403 million, an improvement of 156.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -349 million, an improvement of 66.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -39 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 15 million from the Rs -77 million net cash flows seen during FY23.

HIND.COMPOSI 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	157	403	156.5%
Cash Flow from Investing Activities	Rs m	-210	-349	-
Cash Flow from Financing Activities	Rs m	-24	-39	-
Net Cash Flow	Rs m	-77	15	-

Current Valuations for HIND.COMPOSI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.3, an improvement from the EPS of Rs 18.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 564.0, stands at 25.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	191.4	201.5
TTM Earnings per share	Rs	18.6	23.3
Diluted earnings per share	Rs	18.6	23.3
Price to Cash Flow	x	10.0	12.4
TTM P/E ratio	x	13.1	25.2
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	4,819	5,460
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for HIND.COMPOSI

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 2.4x 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 improved and stood at 474.3x during FY24, from 257.7x 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 3.5% during FY24, from 3.0% 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 improved and stood at 4.3% during FY24, from 3.6% 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 improved and stood at 3.2% during FY24, from 2.8% 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	2.4	1.9
Debtors’ Days	Days	508	454
Interest coverage	x	257.7	474.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.8	3.2
Return on equity	%	3.0	3.5
Return on capital employed	%	3.6	4.3

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

HIND.COMPOSI Share Price Performance

Over the last one year, HIND.COMPOSI share price has moved up from Rs 414.1 to Rs 564.0, registering a gain of Rs 150.0 or around 36.2%.

Overall, the S&P BSE SENSEX is up 27.2% over the year.

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