HIND RECTIFIERS 2023-24 Annual Report Analysis

Mon, 8 Jul

HIND RECTIFIERS 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 RECTIFIERS Income Statement Analysis

• Operating income during the year rose 44.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 708.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.3% in FY24 as against 1.3% in FY23.
• Depreciation charges increased by 44.9% and finance costs increased by 57.7% YoY, respectively.
• Other income grew by 134.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.8% in FY23 to 2.4% in FY24.

HIND RECTIFIERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,591	5,176	44.1%
Other income	Rs m	3	6	134.6%
Total Revenues	Rs m	3,594	5,182	44.2%
Gross profit	Rs m	47	379	708.4%
Depreciation	Rs m	51	74	44.9%
Interest	Rs m	85	134	57.7%
Profit before tax	Rs m	-87	177	NA
Tax	Rs m	-23	52	NA
Profit after tax	Rs m	-64	125	NA
Gross profit margin	%	1.3	7.3
Effective tax rate	%	26.7	29.3
Net profit margin	%	-1.8	2.4

Don't Miss: Key Information for Long-term Investors

HIND RECTIFIERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 14.6%.
• Long-term debt down at Rs 233 million as compared to Rs 243 million during FY23, a fall of 4.0%.
• Current assets rose 13% and stood at Rs 2 billion, while fixed assets rose 18% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 14%.

HIND RECTIFIERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,110	1,240	11.7
Current Liabilities	Rs m	1,508	1,729	14.6
Long-term Debt	Rs m	243	233	-4.0
Total Liabilities	Rs m	2,876	3,289	14.4
Current assets	Rs m	1,850	2,090	13.0
Fixed Assets	Rs m	1,020	1,200	17.6
Total Assets	Rs m	2,876	3,289	14.4

HIND RECTIFIERS Cash Flow Statement Analysis

• HIND RECTIFIERS's cash flow from operating activities (CFO) during FY24 stood at Rs 339 million, an improvement of 2.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -195 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -143 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs 1 million net cash flows seen during FY23.

HIND RECTIFIERS 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	330	339	2.6%
Cash Flow from Investing Activities	Rs m	-293	-195	-
Cash Flow from Financing Activities	Rs m	-37	-143	-
Net Cash Flow	Rs m	1	2	222.0%

Current Valuations for HIND RECTIFIERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.3, an improvement from the EPS of Rs -3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 727.0, stands at 99.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.1 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 43.3 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	209.8	302.0
TTM Earnings per share	Rs	-3.7	7.3
Diluted earnings per share	Rs	-3.7	7.3
Price to Cash Flow	x	-272.2	43.3
TTM P/E ratio	x	-52.4	99.6
Price / Book Value ratio	x	3.2	7.0
Market Cap	Rs m	3,604	8,644
Dividends per share (Unadj.)	Rs	0.0	1.2

Ratio Analysis for HIND RECTIFIERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 improved and stood at 2.3x during FY24, from 0.0x 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 10.1% during FY24, from -5.7% 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 21.1% during FY24, from -0.1% 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 improved and stood at 7.9% during FY24, from 0.7% 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	1.2
Debtors’ Days	Days	687	629
Interest coverage	x	0.0	2.3
Debt to equity ratio	x	0.2	0.2
Return on assets	%	0.7	7.9
Return on equity	%	-5.7	10.1
Return on capital employed	%	-0.1	21.1

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

HIND RECTIFIERS Share Price Performance

Over the last one year, HIND RECTIFIERS share price has moved up from Rs 295.0 to Rs 727.0, registering a gain of Rs 432.0 or around 146.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,397.1 (up 0.4%). Over the last one year it has moved up from 40,670.4 to 75,397.1, a gain of 34,727 points (up 85.4%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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