HISAR METAL 2021-22 Annual Report Analysis

Tue, 6 Sep

HISAR METAL has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

HISAR METAL Income Statement Analysis

• Operating income during the year rose 54.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 47.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.1% in FY22 as against 9.5% in FY21.
• Depreciation charges decreased by 0.9% and finance costs increased by 0.2% YoY, respectively.
• Other income grew by 557.4% YoY.
• Net profit for the year grew by 123.0% YoY.
• Net profit margins during the year grew from 3.5% in FY21 to 5.1% in FY22.

HISAR METAL Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	1,528	2,366	54.8%
Other income	Rs m	3	19	557.4%
Total Revenues	Rs m	1,531	2,385	55.8%
Gross profit	Rs m	146	214	47.2%
Depreciation	Rs m	21	21	-0.9%
Interest	Rs m	50	50	0.2%
Profit before tax	Rs m	78	162	109.2%
Tax	Rs m	23	42	77.3%
Profit after tax	Rs m	54	121	123.0%
Gross profit margin	%	9.5	9.1
Effective tax rate	%	30.3	25.7
Net profit margin	%	3.5	5.1

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HISAR METAL Balance Sheet Analysis

• The company's current liabilities during FY22 down at Rs 704 million as compared to Rs 814 million in FY21, thereby witnessing an decrease of -13.4%.
• Long-term debt down at Rs 190 million as compared to Rs 197 million during FY21, a fall of 3.3%.
• Current assets rose 2% and stood at Rs 1 billion, while fixed assets fell 7% and stood at Rs 215 million in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 1 billion as against Rs 1 billion during FY21, thereby witnessing a growth of 0%.

HISAR METAL Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	323	438	35.6
Current Liabilities	Rs m	814	704	-13.4
Long-term Debt	Rs m	197	190	-3.3
Total Liabilities	Rs m	1,361	1,366	0.4
Current assets	Rs m	1,130	1,152	1.9
Fixed Assets	Rs m	231	215	-7.3
Total Assets	Rs m	1,361	1,366	0.4

HISAR METAL Cash Flow Statement Analysis

• HISAR METAL's cash flow from operating activities (CFO) during FY22 stood at Rs 62 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 8 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -62 million, an improvement of 6% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs 9 million from the Rs 2 million net cash flows seen during FY21.

HISAR METAL Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	87	62	-28.6%
Cash Flow from Investing Activities	Rs m	-19	8	-
Cash Flow from Financing Activities	Rs m	-66	-62	-
Net Cash Flow	Rs m	2	9	284.3%

Current Valuations for HISAR METAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.3, an improvement from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 141.0, stands at 5.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	283.0	438.1
TTM Earnings per share	Rs	10.0	22.3
Diluted earnings per share	Rs	10.0	22.3
Price to Cash Flow	x	8.1	4.9
TTM P/E ratio	x	11.3	5.3
Price / Book Value ratio	x	1.5	1.6
Market Cap	Rs m	494	689
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for HISAR METAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY22, from 1.4x during FY21. 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 4.3x during FY22, from 2.6x during FY21. 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 27.5% during FY22, from 16.7% during FY22. 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 33.7% during FY22, from 24.4% during FY21. 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 12.5% during FY22, from 7.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.4	1.6
Debtors’ Days	Days	980	716
Interest coverage	x	2.6	4.3
Debt to equity ratio	x	0.6	0.4
Return on assets	%	7.6	12.5
Return on equity	%	16.7	27.5
Return on capital employed	%	24.4	33.7

To see how HISAR METAL has performed over the last 5 years, please visit here.

HISAR METAL Share Price Performance

Over the last one year, HISAR METAL share price has moved up from Rs 133.1 to Rs 141.0, registering a gain of Rs 8.0 or around 6.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,141.0 (up 0.3%). Over the last one year it has moved down from 20,666.8 to 19,141.0, a loss of 1,526 points (down 7.4%).

Overall, the S&P BSE SENSEX is up 2.6% over the year.

(To know more, check out historical annual results for HISAR METAL and quarterly results for HISAR METAL)