Share the post "Hindustan Adhesives ‘s Q1 Report: Profit Decreases by 49.65% YoY"
Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -21.01 % over the year, decrease in net sales/revenue by -10.54 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 8.74 %. Marginal increase in other income during this quarter, up by 239.39%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Hindustan Adhesives Ltd.. Profit dropped by -49.65 % Year to Year, Hindustan Adhesives Ltd.’s profitability dropped by -43.35 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -49.64 % Year to Year. EPS decreased by -43.4 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 81.1 Cr | Rs. 71.61 Cr | Rs. 64.06 Cr | -10.54 % | -21.01 % |
| Expenses | Rs. 73.74 Cr | Rs. 63.96 Cr | Rs. 58.98 Cr | -7.79 % | -20.02 % |
| Operating Profit | Rs. 7.36 Cr | Rs. 7.65 Cr | Rs. 5.08 Cr | -33.59 % | -30.98 % |
| OPM % | 9.08 % | 10.68 % | 7.93 % | -2.75 % | -1.15 % |
| Other Income | Rs. 1.03 Cr | Rs. 0.33 Cr | Rs. 1.12 Cr | + 239.39 % | + 8.74 % |
| Interest | Rs. 1.42 Cr | Rs. 1.31 Cr | Rs. 1.19 Cr | -9.16 % | -16.2 % |
| Depreciation | Rs. 2.06 Cr | Rs. 2.49 Cr | Rs. 2.17 Cr | -12.85 % | + 5.34 % |
| Profit before tax | Rs. 4.91 Cr | Rs. 4.18 Cr | Rs. 2.84 Cr | -32.06 % | -42.16 % |
| Tax % | 13.85 % | 10.05 % | 25 % | + 14.95 % | + 11.15 % |
| Net Profit | Rs. 4.23 Cr | Rs. 3.76 Cr | Rs. 2.13 Cr | -43.35 % | -49.65 % |
| EPS in Rs | Rs. 8.26 | Rs. 7.35 | Rs. 4.16 | -43.4 % | -49.64 % |
Today, we’re looking at Hindustan Adhesives Ltd.’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -21.01 %. However, it did see a marginal slip of -10.54 % from the previous quarter. Expenses decreased slightly by -7.79 % quarter-on-quarter, aligning with the annual decline of -20.02 %. Operating profit, while down -30.98 % compared to last year, faced a quarter-on-quarter dip of -33.59 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.15 %, but a shrinkage of -2.75 % sequentially. Other income rose by 239.39 % compared to the last quarter, despite an annual growth of 8.74 %. Interest expenses dropped significantly by -9.16 % from the previous quarter, yet the year-over-year decrease remains at a moderate -16.2 %. Depreciation costs fell by -12.85 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 5.34 %. Profit before tax declined annually by -42.16 % but saw a reduction from the preceding quarter by -32.06 %.
Tax expenses as a percentage of profits increased slightly by 11.15 % compared to last year, with a more notable quarter-on-quarter increase of 14.95 %. Net profit fell by -49.65 % year-on-year but witnessed a -43.35 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -49.64 % but a quarterly fall of -43.4 %. In summary, Hindustan Adhesives Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 81.1 Cr | Rs. 71.61 Cr | Rs. 64.06 Cr | -10.54 % | -21.01 % |
| Expenses | Rs. 73.74 Cr | Rs. 63.96 Cr | Rs. 58.98 Cr | -7.79 % | -20.02 % |
| Operating Profit | Rs. 7.36 Cr | Rs. 7.65 Cr | Rs. 5.08 Cr | -33.59 % | -30.98 % |
| Net Profit | Rs. 4.23 Cr | Rs. 3.76 Cr | Rs. 2.13 Cr | -43.35 % | -49.65 % |
| EPS in Rs | Rs. 8.26 | Rs. 7.35 | Rs. 4.16 | -43.4 % | -49.64 % |
In reviewing Hindustan Adhesives Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -21.01 % year-on-year, although there was a slight dip of -10.54 % from the previous quarter. Expenses decreased by -20.02 % compared to the previous year, with a decrease of -7.79 % quarter-on-quarter. Operating Profit dropped by -30.98 % annually, and saw a -33.59 % decrease from the last quarter.
Net Profit showed yearly decrease of -49.65 %, and experienced a -43.35 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -49.64 % annually, however dipped by -43.4 % compared to the last quarter. In essence, while Hindustan Adhesives Ltd. faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
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