HLE GLASCOAT 2023-24 Annual Report Analysis

Thu, 12 Sep

HLE GLASCOAT 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.

HLE GLASCOAT Income Statement Analysis

• Operating income during the year rose 4.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 19.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY24 as against 15.1% in FY23.
• Depreciation charges increased by 16.8% and finance costs increased by 32.0% YoY, respectively.
• Other income grew by 17.3% YoY.
• Net profit for the year declined by 37.1% YoY.
• Net profit margins during the year declined from 7.7% in FY23 to 4.6% in FY24.

HLE GLASCOAT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,233	9,599	4.0%
Other income	Rs m	75	88	17.3%
Total Revenues	Rs m	9,308	9,687	4.1%
Gross profit	Rs m	1,398	1,122	-19.8%
Depreciation	Rs m	221	258	16.8%
Interest	Rs m	249	329	32.0%
Profit before tax	Rs m	1,003	623	-37.9%
Tax	Rs m	295	178	-39.7%
Profit after tax	Rs m	708	445	-37.1%
Gross profit margin	%	15.1	11.7
Effective tax rate	%	29.4	28.6
Net profit margin	%	7.7	4.6

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HLE GLASCOAT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 19.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 984 million during FY23, a growth of 49.1%.
• Current assets rose 11% and stood at Rs 6 billion, while fixed assets rose 73% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 34%.

HLE GLASCOAT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,267	4,168	27.6
Current Liabilities	Rs m	4,067	4,873	19.8
Long-term Debt	Rs m	984	1,467	49.1
Total Liabilities	Rs m	8,945	12,018	34.4
Current assets	Rs m	5,592	6,203	10.9
Fixed Assets	Rs m	3,353	5,816	73.5
Total Assets	Rs m	8,945	12,018	34.4

HLE GLASCOAT Cash Flow Statement Analysis

• HLE GLASCOAT's cash flow from operating activities (CFO) during FY24 stood at Rs 943 million, an improvement of 1,833.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -455 million, an improvement of 12.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -182 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 306 million from the Rs -222 million net cash flows seen during FY23.

HLE GLASCOAT 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	49	943	1,833.2%
Cash Flow from Investing Activities	Rs m	-404	-455	-
Cash Flow from Financing Activities	Rs m	133	-182	-
Net Cash Flow	Rs m	-222	306	-

Current Valuations for HLE GLASCOAT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.5, an decline from the EPS of Rs 10.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 405.7, stands at 74.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 53.6 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	135.2	140.6
TTM Earnings per share	Rs	10.4	6.5
Diluted earnings per share	Rs	10.4	6.5
Price to Cash Flow	x	37.0	53.6
TTM P/E ratio	x	49.2	74.8
Price / Book Value ratio	x	17.2	9.0
Market Cap	Rs m	56,170	37,667
Dividends per share (Unadj.)	Rs	1.1	1.1

Ratio Analysis for HLE GLASCOAT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.4x 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 2.9x during FY24, from 5.0x 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 declined and down at 10.7% during FY24, from 21.7% 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 16.9% during FY24, from 29.5% 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 6.4% during FY24, from 10.7% 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	1.4	1.3
Debtors’ Days	Days	960	902
Interest coverage	x	5.0	2.9
Debt to equity ratio	x	0.3	0.4
Return on assets	%	10.7	6.4
Return on equity	%	21.7	10.7
Return on capital employed	%	29.5	16.9

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

HLE GLASCOAT Share Price Performance

Over the last one year, HLE GLASCOAT share price has moved down from Rs 590.3 to Rs 405.7, registering a loss of Rs 184.6 or around 31.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,581.9 (up 1.6%). Over the last one year it has moved up from 46,983.6 to 72,581.9, a gain of 25,598 points (up 54.5%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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