HI-TECH GEARS 2023-24 Annual Report Analysis

Mon, 9 Sep

HI-TECH GEARS 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.

HI-TECH GEARS Income Statement Analysis

• Operating income during the year fell 5.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 60.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.5% in FY24 as against 12.1% in FY23.
• Depreciation charges decreased by 25.5% and finance costs increased by 13.9% YoY, respectively.
• Other income grew by 25.2% YoY.
• Net profit for the year grew by 394.3% YoY.
• Net profit margins during the year grew from 2.0% in FY23 to 10.3% in FY24.

HI-TECH GEARS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,692	11,069	-5.3%
Other income	Rs m	79	99	25.2%
Total Revenues	Rs m	11,772	11,168	-5.1%
Gross profit	Rs m	1,413	2,269	60.6%
Depreciation	Rs m	822	612	-25.5%
Interest	Rs m	332	378	13.9%
Profit before tax	Rs m	339	1,379	306.4%
Tax	Rs m	108	237	118.7%
Profit after tax	Rs m	231	1,143	394.3%
Gross profit margin	%	12.1	20.5
Effective tax rate	%	31.9	17.2
Net profit margin	%	2.0	10.3

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

HI-TECH GEARS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -22.8%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 40.2%.
• Current assets fell 7% and stood at Rs 4 billion, while fixed assets fell 7% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 10 billion during FY23, thereby witnessing a fall of 7%.

HI-TECH GEARS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,540	4,656	31.5
Current Liabilities	Rs m	4,027	3,110	-22.8
Long-term Debt	Rs m	2,401	1,435	-40.2
Total Liabilities	Rs m	9,964	9,257	-7.1
Current assets	Rs m	4,656	4,332	-7.0
Fixed Assets	Rs m	5,307	4,925	-7.2
Total Assets	Rs m	9,964	9,257	-7.1

HI-TECH GEARS Cash Flow Statement Analysis

• HI-TECH GEARS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 116.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -195 million from the Rs -275 million net cash flows seen during FY23.

HI-TECH GEARS 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	541	1,175	116.9%
Cash Flow from Investing Activities	Rs m	-407	1,433	-
Cash Flow from Financing Activities	Rs m	-409	-2,802	-
Net Cash Flow	Rs m	-275	-195	-

Current Valuations for HI-TECH GEARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 60.8, an improvement from the EPS of Rs 12.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 903.5, stands at 14.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.6 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	622.9	589.4
TTM Earnings per share	Rs	12.3	60.8
Diluted earnings per share	Rs	12.3	60.8
Price to Cash Flow	x	4.5	5.6
TTM P/E ratio	x	20.5	14.2
Price / Book Value ratio	x	1.2	2.1
Market Cap	Rs m	4,207	9,777
Dividends per share (Unadj.)	Rs	2.5	5.0

Ratio Analysis for HI-TECH GEARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x 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 4.7x during FY24, from 2.0x 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 24.5% during FY24, from 6.5% 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 28.8% during FY24, from 11.3% 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 16.4% during FY24, from 5.6% 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	1.2	1.4
Debtors’ Days	Days	65	66
Interest coverage	x	2.0	4.7
Debt to equity ratio	x	0.7	0.3
Return on assets	%	5.6	16.4
Return on equity	%	6.5	24.5
Return on capital employed	%	11.3	28.8

To see how HI-TECH GEARS has performed over the last 5 years, please visit here.

HI-TECH GEARS Share Price Performance

Over the last one year, HI-TECH GEARS share price has moved up from Rs 394.7 to Rs 903.5, registering a gain of Rs 508.9 or around 128.9%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for HI-TECH GEARS and quarterly results for HI-TECH GEARS)