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Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company experienced a substantial growth of 1.92 % in the past year, decrease in net sales/revenue by -1.81 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -16.67 %, Marginal decrease of -77.27% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for Hindustan Composites Ltd. Profit dropped by -13.65 % Year to Year, Hindustan Composites Ltd’s profitability increased by 8.78 % in this quarter.
- EPS over the Year and quarter: EPS declined by -13.68 % Year to Year. EPS increased by 8.7 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 75.7 Cr | Rs. 78.57 Cr | Rs. 77.15 Cr | -1.81 % | + 1.92 % |
| Expenses | Rs. 61.19 Cr | Rs. 66.31 Cr | Rs. 63.61 Cr | -4.07 % | + 3.95 % |
| Operating Profit | Rs. 14.51 Cr | Rs. 12.26 Cr | Rs. 13.54 Cr | + 10.44 % | -6.69 % |
| OPM % | 19.17 % | 15.6 % | 17.55 % | + 1.95 % | -1.62 % |
| Other Income | Rs. 0.06 Cr | Rs. 0.22 Cr | Rs. 0.05 Cr | -77.27 % | -16.67 % |
| Interest | Rs. 0.04 Cr | Rs. 0 Cr | Rs. 0.03 Cr | 0 % | -25 % |
| Depreciation | Rs. 2.22 Cr | Rs. 2.46 Cr | Rs. 2.51 Cr | + 2.03 % | + 13.06 % |
| Profit before tax | Rs. 12.31 Cr | Rs. 10.02 Cr | Rs. 11.05 Cr | + 10.28 % | -10.24 % |
| Tax % | 18.44 % | 20.46 % | 21.54 % | + 1.08 % | + 3.1 % |
| Net Profit | Rs. 10.04 Cr | Rs. 7.97 Cr | Rs. 8.67 Cr | + 8.78 % | -13.65 % |
| EPS in Rs | Rs. 6.8 | Rs. 5.4 | Rs. 5.87 | + 8.7 % | -13.68 % |
Today, we’re looking at Hindustan Composites Ltd’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 1.92 %. However, it did see a marginal slip of -1.81 % from the previous quarter. Expenses decreased slightly by -4.07 % quarter-on-quarter, aligning with the annual rise of 3.95 %. Operating profit, while down -6.69 % compared to last year, faced a quarter-on-quarter increase of 10.44 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.62 %, but an expansion of 1.95 % sequentially. Other income fell by -77.27 % compared to the last quarter, despite an annual decline of -16.67 %. yet the year-over-year decrease remains at a moderate -25 %. Depreciation costs climbed by 2.03 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 13.06 %. Profit before tax declined annually by -10.24 % but saw an increase from the preceding quarter by 10.28 %.
Tax expenses as a percentage of profits increased slightly by 3.1 % compared to last year, with a more notable quarter-on-quarter increase of 1.08 %. Net profit fell by -13.65 % year-on-year but experienced a 8.78 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -13.68 % but a quarterly rise of 8.7 %. In summary, Hindustan Composites 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. 75.7 Cr | Rs. 78.57 Cr | Rs. 77.15 Cr | -1.81 % | + 1.92 % |
| Expenses | Rs. 61.19 Cr | Rs. 66.31 Cr | Rs. 63.61 Cr | -4.07 % | + 3.95 % |
| Operating Profit | Rs. 14.51 Cr | Rs. 12.26 Cr | Rs. 13.54 Cr | + 10.44 % | -6.69 % |
| Net Profit | Rs. 10.04 Cr | Rs. 7.97 Cr | Rs. 8.67 Cr | + 8.78 % | -13.65 % |
| EPS in Rs | Rs. 6.8 | Rs. 5.4 | Rs. 5.87 | + 8.7 % | -13.68 % |
In reviewing Hindustan Composites Ltd’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 1.92 % year-on-year growth, although there was a slight dip of -1.81 % from the previous quarter. Expenses rose by 3.95 % compared to the previous year, with a decrease of -4.07 % quarter-on-quarter. Operating Profit dropped by -6.69 % annually, and saw a 10.44 % increase from the last quarter.
Net Profit showed yearly decrease of -13.65 %, and experienced a 8.78 % increase from the previous quarter. Earnings Per Share (EPS) fell by -13.68 % annually, however rose by 8.7 % compared to the last quarter. In essence, while Hindustan Composites Ltd faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
28
3-Year Profit
14
5-Year Profit
10
10-Year Profit
486
Current Price
718
Market Cap
For the company identified by BSE code 509635, the financial performance highlights a solid five-year profit of 14 percents. This figure escalates to 28 percents over the three-year period, pointing to positive momentum in its earnings. Despite these encouraging trends, the trailing twelve-month (TTM) figures uncover an alarming profit loss of 20 percents. This decline, coupled with the fact that the company recorded zero sales across all periods examined, raises red flags about the sustainability of its business model and its ability to generate consistent revenue. Furthermore, the stock price fluctuations during this period further reflect the company's uncertain position. The stock started at 23 percents but has since plummeted to 6 percents recently, painting a picture of rapid decline. Over a longer ten-year horizon, the stock price stood at 6 percents, further underscoring the long-term challenges the company faces in maintaining investor confidence and market value.
The company has a market capitalization of ₹718 crore and is currently trading at ₹486 per share. Historically, the stock has fluctuated within a range of ₹670 / 370, reflecting both the opportunities and risks that investors perceive in the company. The P/E ratio, at 21.7, is relatively high, suggesting that the market has priced in substantial future growth or is willing to pay a premium for the company’s current earnings. The book value per share stands at ₹668, which reflects the net asset value of the company divided by the number of outstanding shares. The dividend yield is 0.41%, providing shareholders with a consistent return on their investment. ROCE is 4.54%, indicating how well the company is using its capital to generate profits, while ROE at 3.66% highlights the returns generated from shareholders' equity. The debt-to-equity ratio is 0.00, signaling low financial leverage, which is typically seen as a positive indicator of financial health. However, the company’s negative net cash flow of ₹1.47 crore might raise concerns about its cash generation capabilities or capital expenditures. With a Piotroski score of 7.00, the company's financial stability is evaluated on several factors. Finally, the Graham Number, at ₹580, provides an estimate of the stock’s intrinsic value, while the Price-to-Book (P/B) ratio of 0.73 highlights that the stock is trading at a premium to its book value, potentially reflecting positive market sentiment or overvaluation risks.
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