HLV 2023-24 Annual Report Analysis

Wed, 9 Oct

HLV 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.

HLV Income Statement Analysis

• Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 106.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.5% in FY24 as against 8.6% in FY23.
• Depreciation charges increased by 28.9% and finance costs decreased by 53.0% YoY, respectively.
• Other income declined by 1.7% YoY.
• Net profit for the year grew by 211.3% YoY.
• Net profit margins during the year grew from 4.4% in FY23 to 12.0% in FY24.

HLV Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,729	1,991	15.2%
Other income	Rs m	100	98	-1.7%
Total Revenues	Rs m	1,829	2,089	14.2%
Gross profit	Rs m	149	308	106.7%
Depreciation	Rs m	111	144	28.9%
Interest	Rs m	51	24	-53.0%
Profit before tax	Rs m	86	238	176.5%
Tax	Rs m	10	0	-100.0%
Profit after tax	Rs m	76	238	211.3%
Gross profit margin	%	8.6	15.5
Effective tax rate	%	11.2	0.0
Net profit margin	%	4.4	12.0

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

HLV Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 958 million in FY23, thereby witnessing an increase of 14.7%.
• Long-term debt down at Rs 14 million as compared to Rs 28 million during FY23, a fall of 48.3%.
• Current assets rose 76% and stood at Rs 2 billion, while fixed assets fell 5% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 2%.

HLV Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,188	4,434	5.9
Current Liabilities	Rs m	958	1,099	14.7
Long-term Debt	Rs m	28	14	-48.3
Total Liabilities	Rs m	5,747	5,862	2.0
Current assets	Rs m	1,119	1,975	76.5
Fixed Assets	Rs m	4,019	3,835	-4.6
Total Assets	Rs m	5,747	5,862	2.0

HLV Cash Flow Statement Analysis

• HLV's cash flow from operating activities (CFO) during FY24 stood at Rs 238 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -326 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -25 million, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -113 million from the Rs 107 million net cash flows seen during FY23.

HLV 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	354	238	-32.7%
Cash Flow from Investing Activities	Rs m	164	-326	-
Cash Flow from Financing Activities	Rs m	-411	-25	-
Net Cash Flow	Rs m	107	-113	-

Current Valuations for HLV

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.4, an improvement from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 15.0, stands at 42.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 44.2 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	2.6	3.0
TTM Earnings per share	Rs	0.1	0.4
Diluted earnings per share	Rs	0.1	0.4
Price to Cash Flow	x	32.1	44.2
TTM P/E ratio	x	79.0	42.0
Price / Book Value ratio	x	1.9	3.8
Market Cap	Rs m	7,839	16,854
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for HLV

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 10.9x during FY24, from 2.7x 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 5.4% during FY24, from 1.8% 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 5.9% during FY24, from 3.3% 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 4.5% during FY24, from 2.2% 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	1.8
Debtors’ Days	Days	280	274
Interest coverage	x	2.7	10.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.2	4.5
Return on equity	%	1.8	5.4
Return on capital employed	%	3.3	5.9

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

HLV Share Price Performance

Over the last one year, HLV share price has moved down from Rs 22.1 to Rs 15.0, registering a loss of Rs 7.1 or around 32.1%.

Overall, the S&P BSE SENSEX is up 25.2% over the year.

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