HSIL - Q2 FY 21 - RESULTS REVIEW

 

HSIL

Q2 FY 21 RESULTS REVIEW

 

Management     

Rajendra Kumar Somany : CMD      

Sandip Somany           :  Vice Chairman & Mng.Director

      

COMPANY OVERVIEW    

HSIL stands tall with strong market leadership in the building products market, and a dominant player in the container glass segment.

With the company`s recent foray into the retail of home interior solutions, the company has extended their outreach to the end-customer.

EVOK, their retail brand specializes in providing a comfortable and convenient one-stop shopping experience.   

The Company changed its name to Hindustan Sanitaryware & Industries Limited in 1969 and has since been popularly known as ‘HSIL’. In March 2009, the company name changed to HSIL Limited".

Product portfolio

• The Company is the most respected sanitaryware manufacturer in India today.
• It diversified into manufacture of glass containers through the acquisition of Associated Glass Industries Limited in 1981.
• It widened its product basket with a range of bathroom and kitchen appliances products, leveraging the power of the Hindware brand.
• It expanded in the retail business of Speciality Home Interior Solutions in 2007 through a wholly owned subsidiary, called Hindware Home Retail Pvt. Ltd. (HHRL). Its first store commenced operations in May 2008 under the ‘EVOK’ brand.

Prestige

• Hindware brand has been recognised as a Superbrand for the last four years in a row.
• Its institutional customers in Building Products Division comprises reputed builders like DLF, Unitech L&T, Raheja’s and Puravankara.
• Its institutional customers in the Container Glass Division (AGI) comprises brand-enhancing names like Coca Cola, Pepsi, GlaxoSmithkline, Pfizer, AstraZenca, Ranbaxy, Dr Reddy’s Laboratories, Hindustan Unilever, Priya, Global Green, Continental Coffee, Reckitt Benckiser, Seagram, Sab Miller, McDowell, Shaw Wallace and United Breweries .
• It possesses the largest distribution network in India’s building products industry, supported by 1086, 4109, and 6000 dealers, sub-dealers and retail outlets respectively.

SeqBusiness segment		Location	Annual capacity
1	Building Products Division	Bahadurgarh (Haryana)	14,000 MT
2	Building Products Division	Somanypuram, (Andhra Pradesh)	18,000 MT
3	Container Glass Division (AGI)	Sanathnagar (Hyderabad)	953.10 million pieces

 

Chairman’s Message Extracts

During the year, we introduced new product categories with a palette of offerings that incorporate different styles, functionalities, materials and colours for customised choices. Design is highly personal, we respect and value that element in our craft.

During the year, Board of Directors approved the scheme of arrangement that envisages the demerger of Marketing and Distribution Undertaking of the Consumer Products Division and Retail Division to a separate entity, Somany Home Innovation Limited (SHIL), and the demerger of Marketing and Distribution Undertaking of the Building Products Division to a separate entity, Brilloca Limited, a subsidiary of SHIL.

During the year, the Company launched an innovative product range of pipes and fittings under the brand ‘TRUFLO by hindware’ and initiated trial production from the state-of-the-art plant in Telangana, enabling us to further broaden our offerings for the Building Products Division.

The Company also commissioned Phase I of the security caps and closures plant in Telengana, strengthening the Packaging Product Division.

our pipes plant is first in the industry to be awarded Platinum rating by Indian Green Building Council (IGBC).

Our security caps and closure plant has also been rated Platinum by IGBC.

We also made key investments in growth drivers for the future and achieved yet another year of consistent shareholder returns.

Warm regards,

Dr. Rajendra K Somany

CMD

QUARTERLY RESULTS :

HSIL (in Rs. Cr.)	Sep '20	Jun '20	Mar '20	Dec '19	Sep '19	YOY	QOQ
Net Sales	426	252	461	489	470	-9.27	69.49
Net Profit	36.5	-17 .4	3.38	15.7	14.98	143.46	310
Equity	14.46	14.46	14.46	14.46	14.46	0	0
Basic EPS	5.04	-2.4	0.47	2.17	2.07	143.48	-310
Raw Materials	176.15	97.3	165.19	197.48	187.47	-6.04	81.04
Traded Goods	--	0.01	12.59	33.1	--
Increase/Decrease in Stocks	-10.09	-17.71	-1.67	-36.71	-18.75	-46.19	-43.03
Power & Fuel	70.13	55.29	--	--	89.56	-21.69	26.84
Employees Cost	53.85	39.91	51.14	56.44	60.08	-10.37	34.93
depreciat	24.8	35.49	35.45	32.31	38.25	-35.16	-30.12
Other Expenses	71.95	52.27	179.44	169.54	78.02	-7.78	37.65
Total Expenditure	386	262	442	452	434	-11.06	47.33
P/L Before Other Inc. , Int., Excpt. Items & Tax	39.56	-11.01	18.89	36.95	35.3	12.07	-459.31
Other Income	12.9	3.94	7.1	5.08	4.12	213.11	227.41
P/L Before Int., Excpt. Items & Tax	52.46	-7.07	25.99	42.03	39.42	33.08	-842.01
Interest	19.11	19.23	18.41	17.52	18.76	1.87	-0.62
P/L Before Tax	33.35	-26.3	7.58	24.51	20.66	61.42	-226.81
Tax	-3.12	-8.95	4.2	8.81	5.68	-154.93	-65.14

 

MP  103.25  

PE   4.

895833  

VOLUME 8,28,402

52 Wk L/H     34.7       99.6

Annual Results	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Sales	1,859	2,709	2,249	2,071	1,944
Net Profit	48	70	74	103	116
Other Income	20	29	9	4	3
Total Income	1,879	2,739	2,259	2,076	1,948
Total Expenditure	1,730	2,544	2,097	1,893	1,724
EBIT	148	195	161	183	223
Interest	73	87	55	33	38
Tax	26	37	31	46	68

 

Share Holding Pattern in (%)
Standalone	Sep-20	Mar-20	Dec-19	Sep-19
Promoters	53.91	53.91	49.34	49.34
Pledged	0	0	0	0
FII/FPI	3.14	2.56	1.1	3.44
Total DII	13.82	16.97	24.64	27.35
Fin.Insts	0.02	0.23	0.4	0.28
Insurance Co	0.22	0.22	0	0
MF	1.65	6.08	11.27	15.27
Others DIIs	11.93	10.44	12.97	11.8
Others	29.13	26.56	24.92	19.86
Total	100	100	100	99.99

 

Type	Dividend%	Ex-Dividend date
Final	150	Sep 09, 2020
Final	150	Aug 19, 2019
Final	200	Aug 23, 2018
Final	200	Jul 20, 2017
Final	200	Aug 30, 2016

 

HISTORICAL PRICES
PERIOD	PRICE
3YR BEFO	468.65
2YR BEF	253.4
1YR	49.4
3M	62.15
1M	75
1W	79.3
NOW	98.65

 

CASH FLOWS	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Operating Activities	106	329	57	204	308
Investing Activities	-114	-323	-186	-328	-86
Financing Activities	-2	-185	223	247	-225
Others	0	0	0	0	0
Net Cash Flow	-10	-178	95	124	-3

 

Per Share Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Basic EPS (Rs.)	6.69	9.74	10.34	14.25	16.14
Diluted Eps (Rs.)	6.69	9.74	10.34	14.25	16.14
Book Value [Excl. Reval Reserve]/Share (Rs.)	173.85	209.48	205.99	200.56	207.62
Dividend/Share (Rs.)	3	3	4	4	4
Face Value	2	2	2	2	2
Margin Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Gross Profit Margin (%)	15.67	12.77	12.54	14.18	17.38
Operating Margin (%)	7.98	7.2	7.47	8.83	11.47
Net Profit Margin (%)	2.6	2.6	3.32	4.97	6
Return Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Return on Networth / Equity (%)	3.85	4.65	5.01	7.1	7.77
ROCE (%)	6.59	7.66	7.34	8.96	6.34
Return On Assets (%)	1.68	1.97	2.15	3.33	4.38
Leverage Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Debt to Equity (x)	0.75	0.76	0.78	0.57	0.32
Interest Coverage Ratios (%)	2.02	2.23	3.01	5.49	5.84
Turnover Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
Asset Turnover Ratio (%)	64.81	76.08	64.73	67.09	72.99
Inventory Turnover Ratio (X)	4.56	4.76	3.99	4.21	4.28
Valuation Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
P/E (x)	0	32.93	24.17	20.59	12.04
P/B (x)	0.23	1.19	1.8	1.75	1.34
EV/EBITDA (x)	4.03	8.39	12.77	10.93	7.33
P/S (x)	0.15	0.67	1.19	1.22	1.03
Growth Ratios	Mar-20	Mar-19	Mar-18	Mar-17	Mar-16
3 Yr CAGR Sales (%)	-3.54	11.7	6.6	5.86	7.3
3 Yr CAGR Net Profit (%)	-22.25	-15.48	-10.46	22.38	5.59