HINDUSTAN COPPER 2023-24 Annual Report Analysis

Mon, 9 Sep

HINDUSTAN COPPER 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.

HINDUSTAN COPPER Income Statement Analysis

• Operating income during the year rose 2.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 31.9% in FY24 as against 29.3% in FY23.
• Depreciation charges decreased by 0.0% and finance costs decreased by 4.1% YoY, respectively.
• Other income declined by 42.9% YoY.
• Net profit for the year grew by 0.1% YoY.
• Net profit margins during the year declined from 17.6% in FY23 to 17.2% in FY24.

HINDUSTAN COPPER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,773	17,170	2.4%
Other income	Rs m	959	547	-42.9%
Total Revenues	Rs m	17,732	17,717	-0.1%
Gross profit	Rs m	4,920	5,475	11.3%
Depreciation	Rs m	1,749	1,749	0.0%
Interest	Rs m	173	166	-4.1%
Profit before tax	Rs m	3,957	4,107	3.8%
Tax	Rs m	1,004	1,150	14.6%
Profit after tax	Rs m	2,953	2,957	0.1%
Gross profit margin	%	29.3	31.9
Effective tax rate	%	25.4	28.0
Net profit margin	%	17.6	17.2

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HINDUSTAN COPPER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 1.0%.
• Long-term debt stood at Rs 725 million as compared to Rs 172 million during FY23, a growth of 321.5%.
• Current assets rose 10% and stood at Rs 9 billion, while fixed assets rose 14% and stood at Rs 25 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 34 billion as against Rs 30 billion during FY23, thereby witnessing a growth of 13%.

HINDUSTAN COPPER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,822	22,851	9.7
Current Liabilities	Rs m	8,365	8,451	1.0
Long-term Debt	Rs m	172	725	321.5
Total Liabilities	Rs m	30,006	33,954	13.2
Current assets	Rs m	7,975	8,733	9.5
Fixed Assets	Rs m	22,031	25,221	14.5
Total Assets	Rs m	30,006	33,954	13.2

HINDUSTAN COPPER Cash Flow Statement Analysis

• HINDUSTAN COPPER's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 41.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -386 million, an improvement of 89% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs -32 million net cash flows seen during FY23.

HINDUSTAN COPPER 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	6,736	2,921	-56.6%
Cash Flow from Investing Activities	Rs m	-3,373	-4,757	-
Cash Flow from Financing Activities	Rs m	-3,395	-386	-
Net Cash Flow	Rs m	-32	-2,223	-

Current Valuations for HINDUSTAN COPPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.1, an improvement from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 303.6, stands at 81.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.8 times, while the price to sales ratio stands at 17.1 times.
• The company's price to cash flow (P/CF) ratio stood at 41.5 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	17.3	17.8
TTM Earnings per share	Rs	3.1	3.1
Diluted earnings per share	Rs	3.1	3.1
Price to Cash Flow	x	20.2	41.5
TTM P/E ratio	x	32.2	81.1
Price / Book Value ratio	x	5.0	8.5
Market Cap	Rs m	103,278	195,194
Dividends per share (Unadj.)	Rs	0.9	0.9

Ratio Analysis for HINDUSTAN COPPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY24, from 1.0x 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 25.8x during FY24, from 23.9x 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 12.9% during FY24, from 14.2% 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 18.1% during FY24, from 19.7% 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 9.2% during FY24, from 10.4% 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	1.0	1.0
Debtors’ Days	Days	144	291
Interest coverage	x	23.9	25.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.4	9.2
Return on equity	%	14.2	12.9
Return on capital employed	%	19.7	18.1

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

HINDUSTAN COPPER Share Price Performance

Over the last one year, HINDUSTAN COPPER share price has moved up from Rs 167.0 to Rs 303.6, registering a gain of Rs 136.6 or around 81.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,919.4 (down 1.3%). Over the last one year it has moved up from 23,312.5 to 30,919.4, a gain of 7,607 points (up 32.6%).

Overall, the S&P BSE SENSEX is up 23.3% over the year.

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