HINDUSTAN FOODS 2023-24 Annual Report Analysis

Mon, 2 Sep

HINDUSTAN FOODS 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 FOODS Income Statement Analysis

• Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.1% in FY24 as against 6.7% in FY23.
• Depreciation charges increased by 46.5% and finance costs increased by 58.2% YoY, respectively.
• Other income grew by 59.1% YoY.
• Net profit for the year grew by 30.8% YoY.
• Net profit margins during the year grew from 2.7% in FY23 to 3.4% in FY24.

HINDUSTAN FOODS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	25,981	27,547	6.0%
Other income	Rs m	45	72	59.1%
Total Revenues	Rs m	26,026	27,619	6.1%
Gross profit	Rs m	1,734	2,219	28.0%
Depreciation	Rs m	374	548	46.5%
Interest	Rs m	359	569	58.2%
Profit before tax	Rs m	1,045	1,174	12.3%
Tax	Rs m	334	244	-26.9%
Profit after tax	Rs m	711	930	30.8%
Gross profit margin	%	6.7	8.1
Effective tax rate	%	32.0	20.8
Net profit margin	%	2.7	3.4

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HINDUSTAN FOODS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 36.5%.
• Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY23, a growth of 29.6%.
• Current assets rose 45% and stood at Rs 9 billion, while fixed assets rose 43% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 44%.

HINDUSTAN FOODS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,749	5,711	52.3
Current Liabilities	Rs m	5,049	6,890	36.5
Long-term Debt	Rs m	3,820	4,952	29.6
Total Liabilities	Rs m	13,348	19,245	44.2
Current assets	Rs m	5,977	8,675	45.1
Fixed Assets	Rs m	7,371	10,570	43.4
Total Assets	Rs m	13,348	19,245	44.2

HINDUSTAN FOODS Cash Flow Statement Analysis

• HINDUSTAN FOODS's cash flow from operating activities (CFO) during FY24 stood at Rs 867 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 54.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 133% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 33 million from the Rs 73 million net cash flows seen during FY23.

HINDUSTAN FOODS 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	991	867	-12.5%
Cash Flow from Investing Activities	Rs m	-2,465	-3,813	-
Cash Flow from Financing Activities	Rs m	1,279	2,980	133.0%
Net Cash Flow	Rs m	73	33	-54.5%

Current Valuations for HINDUSTAN FOODS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an improvement from the EPS of Rs 6.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 574.5, stands at 67.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.5 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 43.8 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	230.5	240.4
TTM Earnings per share	Rs	6.3	8.1
Diluted earnings per share	Rs	6.2	8.1
Price to Cash Flow	x	53.3	43.8
TTM P/E ratio	x	81.3	67.9
Price / Book Value ratio	x	16.2	11.3
Market Cap	Rs m	60,762	64,720
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HINDUSTAN FOODS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 3.1x during FY24, from 3.9x 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 16.3% during FY24, from 19.0% 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 16.3% during FY24, from 18.6% 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 declined and down at 7.8% 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	1.2	1.3
Debtors’ Days	Days	147	233
Interest coverage	x	3.9	3.1
Debt to equity ratio	x	1.0	0.9
Return on assets	%	8.0	7.8
Return on equity	%	19.0	16.3
Return on capital employed	%	18.6	16.3

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

HINDUSTAN FOODS Share Price Performance

Over the last one year, HINDUSTAN FOODS share price has moved up from Rs 549.3 to Rs 574.5, registering a gain of Rs 25.2 or around 4.6%.

Overall, the S&P BSE SENSEX is up 27.0% over the year.

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