INDIAN HUME PIPE 2023-24 Annual Report Analysis

Wed, 10 Jul

INDIAN HUME PIPE 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.

INDIAN HUME PIPE Income Statement Analysis

• Operating income during the year fell 10.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.1% in FY24 as against 9.3% in FY23.
• Depreciation charges decreased by 10.6% and finance costs decreased by 4.4% YoY, respectively.
• Other income declined by 60.3% YoY.
• Net profit for the year grew by 39.4% YoY.
• Net profit margins during the year grew from 3.6% in FY23 to 5.6% in FY24.

INDIAN HUME PIPE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	15,429	13,886	-10.0%
Other income	Rs m	217	86	-60.3%
Total Revenues	Rs m	15,646	13,972	-10.7%
Gross profit	Rs m	1,432	1,824	27.4%
Depreciation	Rs m	155	139	-10.6%
Interest	Rs m	770	736	-4.4%
Profit before tax	Rs m	724	1,035	43.0%
Tax	Rs m	167	259	55.1%
Profit after tax	Rs m	557	776	39.4%
Gross profit margin	%	9.3	13.1
Effective tax rate	%	23.0	25.0
Net profit margin	%	3.6	5.6

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INDIAN HUME PIPE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 12 billion as compared to Rs 14 billion in FY23, thereby witnessing an decrease of -17.7%.
• Long-term debt down at Rs 32 million as compared to Rs 134 million during FY23, a fall of 76.1%.
• Current assets fell 5% and stood at Rs 18 billion, while fixed assets rose 8% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 22 billion during FY23, thereby witnessing a fall of 3%.

INDIAN HUME PIPE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,953	8,293	19.3
Current Liabilities	Rs m	14,210	11,695	-17.7
Long-term Debt	Rs m	134	32	-76.1
Total Liabilities	Rs m	22,157	21,416	-3.3
Current assets	Rs m	19,023	18,037	-5.2
Fixed Assets	Rs m	3,134	3,379	7.8
Total Assets	Rs m	22,157	21,416	-3.3

INDIAN HUME PIPE Cash Flow Statement Analysis

• INDIAN HUME PIPE's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 996.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -679 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -373 million, an improvement of 40% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -314 million net cash flows seen during FY23.

INDIAN HUME PIPE 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	194	2,130	996.1%
Cash Flow from Investing Activities	Rs m	114	-679	-
Cash Flow from Financing Activities	Rs m	-623	-373	-
Net Cash Flow	Rs m	-314	1,079	-

Current Valuations for INDIAN HUME PIPE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.7, an improvement from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 416.2, stands at 28.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.9 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	318.4	263.6
TTM Earnings per share	Rs	11.5	14.7
Diluted earnings per share	Rs	10.6	14.7
Price to Cash Flow	x	9.0	12.9
TTM P/E ratio	x	11.5	28.2
Price / Book Value ratio	x	1.1	1.4
Market Cap	Rs m	7,792	11,774
Dividends per share (Unadj.)	Rs	1.0	1.5

Ratio Analysis for INDIAN HUME PIPE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.3x 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 2.4x during FY24, from 1.9x 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 9.4% during FY24, from 8.0% 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 21.3% during FY24, from 21.1% 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 7.1% during FY24, from 6.0% 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	1.3	1.5
Debtors’ Days	Days	1,756	1,738
Interest coverage	x	1.9	2.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	7.1
Return on equity	%	8.0	9.4
Return on capital employed	%	21.1	21.3

To see how INDIAN HUME PIPE has performed over the last 5 years, please visit here.

INDIAN HUME PIPE Share Price Performance

Over the last one year, INDIAN HUME PIPE share price has moved up from Rs 232.4 to Rs 416.2, registering a gain of Rs 183.9 or around 79.1%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for INDIAN HUME PIPE and quarterly results for INDIAN HUME PIPE)