HINDWARE HOME INNOVATION 2023-24 Annual Report Analysis

Thu, 8 Aug

HINDWARE HOME INNOVATION 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.

HINDWARE HOME INNOVATION Income Statement Analysis

• Operating income during the year fell 2.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.5% in FY24 as against 8.5% in FY23.
• Depreciation charges increased by 21.9% and finance costs increased by 23.3% YoY, respectively.
• Other income grew by 4.4% YoY.
• Net profit for the year declined by 44.7% YoY.
• Net profit margins during the year declined from 2.3% in FY23 to 1.3% in FY24.

HINDWARE HOME INNOVATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,723	28,000	-2.5%
Other income	Rs m	356	372	4.4%
Total Revenues	Rs m	29,079	28,372	-2.4%
Gross profit	Rs m	2,455	2,377	-3.2%
Depreciation	Rs m	1,010	1,230	21.9%
Interest	Rs m	771	951	23.3%
Profit before tax	Rs m	1,030	567	-44.9%
Tax	Rs m	365	200	-45.3%
Profit after tax	Rs m	665	368	-44.7%
Gross profit margin	%	8.5	8.5
Effective tax rate	%	35.5	35.2
Net profit margin	%	2.3	1.3

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HINDWARE HOME INNOVATION Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 9.6%.
• Long-term debt stood at Rs 3 billion as compared to Rs 3 billion during FY23, a growth of 3.4%.
• Current assets rose 1% and stood at Rs 12 billion, while fixed assets rose 8% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 23 billion during FY23, thereby witnessing a growth of 4%.

HINDWARE HOME INNOVATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,757	5,978	3.8
Current Liabilities	Rs m	11,103	12,164	9.6
Long-term Debt	Rs m	3,281	3,392	3.4
Total Liabilities	Rs m	22,664	23,671	4.4
Current assets	Rs m	11,974	12,124	1.2
Fixed Assets	Rs m	10,689	11,547	8.0
Total Assets	Rs m	22,664	23,671	4.4

HINDWARE HOME INNOVATION Cash Flow Statement Analysis

• HINDWARE HOME INNOVATION's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 9.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -20 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 200 million from the Rs -173 million net cash flows seen during FY23.

HINDWARE HOME INNOVATION 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	2,208	2,408	9.0%
Cash Flow from Investing Activities	Rs m	-7,047	-2,188	-
Cash Flow from Financing Activities	Rs m	4,667	-20	-
Net Cash Flow	Rs m	-173	200	-

Current Valuations for HINDWARE HOME INNOVATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.1, an decline from the EPS of Rs 9.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 422.0, stands at 83.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 22.2 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	397.3	387.3
TTM Earnings per share	Rs	9.2	5.1
Diluted earnings per share	Rs	9.2	5.1
Price to Cash Flow	x	15.3	22.2
TTM P/E ratio	x	38.5	83.0
Price / Book Value ratio	x	4.6	5.9
Market Cap	Rs m	26,726	35,398
Dividends per share (Unadj.)	Rs	0.5	0.4

Ratio Analysis for HINDWARE HOME INNOVATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 deteriorated and stood at 1.6x during FY24, from 2.3x 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 declined and down at 6.1% during FY24, from 11.5% 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 declined and down at 16.2% during FY24, from 19.9% 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 declined and down at 5.6% during FY24, from 6.3% 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	1.1	1.0
Debtors’ Days	Days	480	591
Interest coverage	x	2.3	1.6
Debt to equity ratio	x	0.6	0.6
Return on assets	%	6.3	5.6
Return on equity	%	11.5	6.1
Return on capital employed	%	19.9	16.2

To see how HINDWARE HOME INNOVATION has performed over the last 5 years, please visit here.

HINDWARE HOME INNOVATION Share Price Performance

Over the last one year, HINDWARE HOME INNOVATION share price has moved down from Rs 630.1 to Rs 422.0, registering a loss of Rs 208.2 or around 33.0%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

(To know more, check out historical annual results for HINDWARE HOME INNOVATION and quarterly results for HINDWARE HOME INNOVATION)