HINDUSTAN MOTORS 2023-24 Annual Report Analysis

Fri, 27 Sep

HINDUSTAN MOTORS 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 MOTORS Income Statement Analysis

• Operating income during the year rose 0.0% 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 36.1% in FY24 as against 0.0% in FY23.
• Depreciation charges decreased by 21.3% and finance costs decreased by 76.6% YoY, respectively.
• Other income grew by 610.1% YoY.
• Net profit for the year grew by 56400.0% YoY.
• Net profit margins during the year grew from 0.0% in FY23 to 0.0% in FY24.

HINDUSTAN MOTORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	0	32	0.0%
Other income	Rs m	38	269	610.1%
Total Revenues	Rs m	38	302	695.8%
Gross profit	Rs m	-42	-12	NA
Depreciation	Rs m	5	4	-21.3%
Interest	Rs m	1	0	-76.6%
Profit before tax	Rs m	-10	253	NA
Tax	Rs m	-11	-1	NA
Profit after tax	Rs m	0	254	56,400.0%
Gross profit margin	%	0.0	-36.1
Effective tax rate	%	104.4	-0.5
Net profit margin	%	0.0	0.0

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HINDUSTAN MOTORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 339 million as compared to Rs 328 million in FY23, thereby witnessing an increase of 3.2%.
• Current assets rose 314% and stood at Rs 404 million, while fixed assets fell 28% and stood at Rs 124 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 528 million as against Rs 270 million during FY23, thereby witnessing a growth of 96%.

HINDUSTAN MOTORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-90	163	NA
Current Liabilities	Rs m	328	339	3.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	270	528	95.9
Current assets	Rs m	98	404	314.4
Fixed Assets	Rs m	172	124	-28.0
Total Assets	Rs m	270	528	95.9

HINDUSTAN MOTORS Cash Flow Statement Analysis

• HINDUSTAN MOTORS's cash flow from operating activities (CFO) during FY24 stood at Rs -152 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 157 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 0 million, an improvement of 76% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 million from the Rs 6 million net cash flows seen during FY23.

HINDUSTAN MOTORS 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	12	-152	-
Cash Flow from Investing Activities	Rs m	-5	157	-
Cash Flow from Financing Activities	Rs m	-1	0	-
Net Cash Flow	Rs m	6	4	-27.5%

Current Valuations for HINDUSTAN MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.2, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.5, stands at 16.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 35.1 times, while the price to sales ratio stands at 176.4 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	0.0	0.2
TTM Earnings per share	Rs	0.0	1.2
Diluted earnings per share	Rs	0.0	1.2
Price to Cash Flow	x	472.4	14.9
TTM P/E ratio	x	2,253.5	16.6
Price / Book Value ratio	x	-41.9	23.6
Market Cap	Rs m	3,788	3,852
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HINDUSTAN MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 0.3x 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 improved and stood at 844.2x during FY24, from -7.0x 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 155.6% during FY24, from -0.5% 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 155.0% during FY24, from 9.9% 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 48.2% during FY24, from 0.6% 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	0.3	1.2
Debtors’ Days	Days	0	0
Interest coverage	x	-7.0	844.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.6	48.2
Return on equity	%	-0.5	155.6
Return on capital employed	%	9.9	155.0

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

HINDUSTAN MOTORS Share Price Performance

Over the last one year, HINDUSTAN MOTORS share price has moved up from Rs 15.7 to Rs 27.5, registering a gain of Rs 11.8 or around 74.9%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 62,337.0 (up 0.6%). Over the last one year it has moved up from 36,890.3 to 62,337.0, a gain of 25,447 points (up 69.0%).

Overall, the S&P BSE SENSEX is up 29.6% over the year.

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