HBL POWER 2023-24 Annual Report Analysis

Mon, 9 Sep

HBL POWER 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.

HBL POWER Income Statement Analysis

• Operating income during the year rose 63.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 168.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.5% in FY24 as against 11.3% in FY23.
• Depreciation charges increased by 16.3% and finance costs increased by 97.6% YoY, respectively.
• Other income grew by 1.3% YoY.
• Net profit for the year grew by 184.8% YoY.
• Net profit margins during the year grew from 7.2% in FY23 to 12.6% in FY24.

HBL POWER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,687	22,334	63.2%
Other income	Rs m	177	179	1.3%
Total Revenues	Rs m	13,864	22,513	62.4%
Gross profit	Rs m	1,541	4,131	168.0%
Depreciation	Rs m	355	413	16.3%
Interest	Rs m	65	129	97.6%
Profit before tax	Rs m	1,298	3,768	190.3%
Tax	Rs m	314	964	207.6%
Profit after tax	Rs m	984	2,803	184.8%
Gross profit margin	%	11.3	18.5
Effective tax rate	%	24.2	25.6
Net profit margin	%	7.2	12.6

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

HBL POWER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 48.0%.
• Long-term debt down at Rs 230 million as compared to Rs 393 million during FY23, a fall of 41.6%.
• Current assets rose 30% and stood at Rs 12 billion, while fixed assets rose 32% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 31%.

HBL POWER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,514	12,205	28.3
Current Liabilities	Rs m	3,470	5,135	48.0
Long-term Debt	Rs m	393	230	-41.6
Total Liabilities	Rs m	13,553	17,715	30.7
Current assets	Rs m	9,327	12,155	30.3
Fixed Assets	Rs m	4,226	5,560	31.6
Total Assets	Rs m	13,553	17,715	30.7

HBL POWER Cash Flow Statement Analysis

• HBL POWER 's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 123.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 180.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -423 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 915 million from the Rs 823 million net cash flows seen during FY23.

HBL POWER 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	1,224	2,731	123.0%
Cash Flow from Investing Activities	Rs m	-497	-1,394	-
Cash Flow from Financing Activities	Rs m	96	-423	-
Net Cash Flow	Rs m	823	915	11.1%

Current Valuations for HBL POWER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an improvement from the EPS of Rs 3.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 600.8, stands at 58.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.6 times, while the price to sales ratio stands at 7.5 times.
• The company's price to cash flow (P/CF) ratio stood at 30.5 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	49.4	80.6
TTM Earnings per share	Rs	3.6	10.1
Diluted earnings per share	Rs	3.6	10.1
Price to Cash Flow	x	19.7	30.5
TTM P/E ratio	x	27.2	58.0
Price / Book Value ratio	x	2.7	8.0
Market Cap	Rs m	25,336	98,024
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for HBL POWER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY24, from 2.7x 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 30.1x during FY24, from 20.8x 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 23.0% during FY24, from 10.3% 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 31.3% during FY24, from 13.8% 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 16.6% during FY24, from 7.7% 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	2.7	2.4
Debtors’ Days	Days	832	625
Interest coverage	x	20.8	30.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.7	16.6
Return on equity	%	10.3	23.0
Return on capital employed	%	13.8	31.3

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

HBL POWER Share Price Performance

Over the last one year, HBL POWER share price has moved up from Rs 269.7 to Rs 600.8, registering a gain of Rs 331.1 or around 122.7%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

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