HEMANT SURGICAL INDUSTRIES 2022-23 Annual Report Analysis

Tue, 6 Jun

HEMANT SURGICAL INDUSTRIES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

HEMANT SURGICAL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 5.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 67.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.7% in FY23 as against 6.1% in FY22.
• Depreciation charges increased by 13.5% and finance costs increased by 21.4% YoY, respectively.
• Other income grew by 6.8% YoY.
• Net profit for the year grew by 65.8% YoY.
• Net profit margins during the year grew from 4.5% in FY22 to 7.0% in FY23.

HEMANT SURGICAL INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,036	1,091	5.4%
Other income	Rs m	22	23	6.8%
Total Revenues	Rs m	1,058	1,115	5.4%
Gross profit	Rs m	63	105	67.4%
Depreciation	Rs m	7	9	13.5%
Interest	Rs m	16	20	21.4%
Profit before tax	Rs m	61	101	64.5%
Tax	Rs m	15	24	60.6%
Profit after tax	Rs m	46	77	65.8%
Gross profit margin	%	6.1	9.7
Effective tax rate	%	24.5	23.9
Net profit margin	%	4.5	7.0

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HEMANT SURGICAL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 379 million as compared to Rs 370 million in FY22, thereby witnessing an increase of 2.6%.
• Long-term debt down at Rs 31 million as compared to Rs 41 million during FY22, a fall of 25.0%.
• Current assets rose 24% and stood at Rs 467 million, while fixed assets rose 7% and stood at Rs 180 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 647 million as against Rs 544 million during FY22, thereby witnessing a growth of 19%.

HEMANT SURGICAL INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	131	236	79.5
Current Liabilities	Rs m	370	379	2.6
Long-term Debt	Rs m	41	31	-25.0
Total Liabilities	Rs m	544	647	19.0
Current assets	Rs m	376	467	24.2
Fixed Assets	Rs m	168	180	7.3
Total Assets	Rs m	544	647	19.0

HEMANT SURGICAL INDUSTRIES Cash Flow Statement Analysis

• HEMANT SURGICAL INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 86 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -16 million, an improvement of 2,853.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -44 million, an improvement of 43% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 26 million from the Rs 43 million net cash flows seen during FY22.

HEMANT SURGICAL INDUSTRIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	121	86	-28.4%
Cash Flow from Investing Activities	Rs m	-1	-16	-
Cash Flow from Financing Activities	Rs m	-77	-44	-
Net Cash Flow	Rs m	43	26	-38.9%

Current Valuations for HEMANT SURGICAL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.0, an decline from the EPS of Rs 230.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 170.6, stands at 23.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 20.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	5,178.5	142.1
TTM Earnings per share	Rs	230.7	10.0
Diluted earnings per share	Rs	4.4	7.3
Price to Cash Flow	x	0.0	20.9
TTM P/E ratio	x	0.0	23.3
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	1,781
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HEMANT SURGICAL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.0x during FY22. 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 6.1x during FY23, from 4.7x during FY22. 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 32.4% during FY23, from 35.1% during FY23. 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 45.2% during FY23, from 45.0% during FY22. 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 14.9% during FY23, from 11.5% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.2
Debtors’ Days	Days	552	575
Interest coverage	x	4.7	6.1
Debt to equity ratio	x	0.3	0.1
Return on assets	%	11.5	14.9
Return on equity	%	35.1	32.4
Return on capital employed	%	45.0	45.2

To see how HEMANT SURGICAL INDUSTRIES has performed over the last 5 years, please visit here.

HEMANT SURGICAL INDUSTRIES Share Price Performance

Over the last one year, HEMANT SURGICAL INDUSTRIES share price has moved up from Rs 0.0 to Rs 170.6, registering a gain of Rs 170.6 or around 0.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 24,049.8 (down 0.1%). Over the last one year it has moved up from 22,051.7 to 24,049.8, a gain of 1,998 points (up 9.1%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for HEMANT SURGICAL INDUSTRIES and quarterly results for HEMANT SURGICAL INDUSTRIES)