HIL LTD
Q2 FY 21 RESULTS REVIEW
DT 01 12 2020
Management
C K Birla Chairman
Dhirup Roy Choudhary Managing Director & CEO
COMPANY OVERVIEW
HIL Ltd is a multi product, multi location organization with a formidable network of branches, depots, stockists and personnel spread all over India.
The product range includes :
CHARMINAR AC ROOFING SHEETS for -Industrial sheds, Agricultural buildings,Warehouses,Poultry farms,Garage, Verandahs & Cinema halls.
AEROCON PANELS for- Partition,Prefabricated House,Sign boards,Toilets,Mezzanine flooring,Sun shades ,Schools & Low cost housing.
AEROCON HQ BUILDING BLOCKS for -Residential apartments,Commercial complex,Industrial complex,Multiplex & Shopping malls.
AEROCOOL ROOF BLOCK FOR COOL INDOORS for - Residential buildings, Commercial Buildings & Industrial builldings.
FLEX-O-BOARD for-
False ceiling,Partitions,Paneling,Sign boards,Return air boxing,Air cooling ducts,Backing material for cupboards,Table tops ,Panel doors,Cabinet shelves& Sandwich Panels.
CALCIUM SILICATE BLOCKS AND PIPE-COVERINGS for - Boilers,Blast Furnace Shaft,Annealing Furnaces,Preheater Cyclones &Steam Pipelines..
The company also in the business segment of Wind Power, Building Products, Thermal Insulation Products
QUARTERLY RESULTS
|
HIL (in Rs. Cr.) |
Sep '20 |
Jun '20 |
Mar '20 |
Dec '19 |
Sep '19 |
YOY |
QOQ |
|
Net Sales |
703.79 |
692.96 |
645.18 |
591.14 |
585.88 |
20.13 |
1.56 |
|
Raw Materials |
352.69 |
283.62 |
312.27 |
302.45 |
273.88 |
28.78 |
24.35 |
|
Traded Goods |
19.58 |
13.21 |
20.26 |
22.67 |
18.7 |
4.71 |
48.22 |
|
Increase/Decrease in Stocks |
-20.34 |
65.2 |
-2.02 |
-32.76 |
1.29 |
-1676.74 |
-131.2 |
|
Employees Cost |
97.04 |
93.4 |
92.35 |
91.62 |
85.4 |
13.63 |
3.9 |
|
Depreciation |
26.66 |
25.21 |
25.33 |
24.7 |
24.36 |
9.44 |
5.75 |
|
Other Expenses |
162.53 |
137.02 |
166 |
162.93 |
157.17 |
3.41 |
18.62 |
|
Total Expenditure |
638 |
617 |
614 |
571 |
560 |
13.93 |
3.4 |
|
P/L Before Other Inc., Int., Excpt. Items & Tax |
65.63 |
75.3 |
30.99 |
19.53 |
25.08 |
161.68 |
-12.84 |
|
Other Income |
6.54 |
6.5 |
5.66 |
3.72 |
10.94 |
-40.22 |
0.62 |
|
P/L Before Int., Excpt. Items & Tax |
72.17 |
81.8 |
36.65 |
23.25 |
36.02 |
100.36 |
-11.77 |
|
Interest |
6.77 |
10.74 |
9.36 |
10.21 |
9.4 |
-27.98 |
-36.96 |
|
P/L Before Tax |
65.4 |
71.06 |
27.29 |
13.04 |
26.62 |
145.68 |
-7.97 |
|
Tax |
17.09 |
20.99 |
4.58 |
3.56 |
-4.86 |
-451.65 |
-18.58 |
|
P/L After Tax from Ordinary Activities |
48.31 |
50.07 |
22.71 |
9.48 |
31.48 |
53.46 |
-3.52 |
|
Extra Ordinary Items |
45.59 |
-0.09 |
0.89 |
-- |
-- |
||
|
Net Profit |
93.9 |
49.98 |
23.6 |
9.48 |
31.48 |
198.28 |
87.88 |
|
Share Of P/L Of Associates |
0.43 |
0.31 |
0.16 |
0.15 |
0.46 |
-6.52 |
38.71 |
|
N P T |
94.33 |
50.29 |
23.76 |
9.63 |
31.94 |
195.34 |
87.57 |
|
Equity Share Capital |
7.52 |
7.51 |
7.51 |
7.51 |
7.51 |
0.13 |
0.13 |
|
Basic EPS: FV :Rs.10 |
125.97 |
67.25 |
31.78 |
12.88 |
42.73 |
194.8 |
87.32 |
|
Diluted EPS |
125.79 |
67.18 |
31.73 |
12.86 |
42.66 |
194.87 |
87.24 |
MP 2039
PE 4.05
VOLUMES 22500
52 Wk L/H 97.15 2097
TECHNICAL ANALYSIS
BULLISH
CONTINUING OPNS Q2FY21 Q2 FY20
REVENUE 710 586
EXPENDITURE 611 528
EBITDA 99 58
PBT 66 25
PAT 49 30
EPS 65.09 39.95
FOR CONTINUING & DISCONTINUED OPERATIONS
PBT 127 27
PAT 94 32
EPS 125.97 42.73
REVENUE (CRs) 704 575
ROOFING SOLUTIONS 187 147
BUILDING SOLUTIONS 68 78
POLYMER SOLUTIONS 92 62
FLOORING SOLUTIONS 356 287
OTHERS 2 3
LAST 4 YEARS:-
|
Cash Flows |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-16 |
|
Operating Activities |
130 |
134 |
187 |
38 |
|
Investing Activities |
-119 |
-344 |
-165 |
-52 |
|
Financing Activities |
7 |
265 |
-20 |
11 |
|
Others |
3 |
-2 |
0 |
0 |
|
Net Cash Flow |
22 |
53 |
1 |
-1 |
|
Annual Results |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-16 |
|
Sales |
2,554 |
2,208 |
1,279 |
1,099 |
|
Other Income |
24 |
26 |
22 |
12 |
|
Total Income |
2,579 |
2,234 |
1,302 |
1,111 |
|
Total Expenditure |
2,414 |
2,042 |
1,178 |
1,042 |
|
EBIT |
164 |
191 |
123 |
69 |
|
Interest |
38 |
25 |
3 |
9 |
|
Tax |
27 |
65 |
39 |
20 |
|
Net Profit |
98 |
101 |
80 |
39 |
|
Margin Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-16 |
|
Gross Profit Margin (%) |
10.24 |
12.75 |
13.33 |
10.18 |
|
Operating Margin (%) |
6.44 |
9.65 |
9.67 |
6.55 |
|
Net Profit Margin (%) |
4.12 |
4.6 |
6.31 |
3.63 |
|
Return Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-16 |
|
Return on Networth / Equity (%) |
14.26 |
15.91 |
14.26 |
8.75 |
|
ROCE (%) |
12.21 |
16.26 |
18.13 |
6.84 |
|
Return On Assets (%) |
4.91 |
5.13 |
7.92 |
4.39 |
|
Leverage Ratios |
MAR 2020 |
MAR 2019 |
MAR 2018 |
MAR 2016 |
|
Debt to Equity (x) |
0.86 |
0.94 |
0.12 |
0.32 |
|
Interest Coverage Ratios (%) |
4.28 |
8.47 |
32.01 |
7.70 |
|
HISTORICAL PRICES |
RS |
|
3
YRS Before |
1335.85 |
|
2YRS |
2120 |
|
1YR |
1229 |
|
3MONTH |
1642.55 |
|
1Month |
1746.6 |
|
1 WEEK |
2036.45 |
|
NOW |
2019 |
|
Per Share Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-16 |
|
Basic EPS (Rs.) |
141.73 |
135.78 |
108.21 |
53.53 |
|
Diluted Eps (Rs.) |
141.44 |
135.34 |
108.01 |
53.53 |
|
Book Value [Excl. Reval Reserve]/Share (Rs.) |
989.57 |
849.75 |
755.86 |
608.95 |
|
Dividend/Share (Rs.) |
20 |
25 |
22.5 |
17.5 |
|
Face Value |
10 |
10 |
10 |
10 |
|
Margin Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-16 |
|
Gross Profit Margin (%) |
10.24 |
12.75 |
13.33 |
10.18 |
|
Operating Margin (%) |
6.44 |
9.65 |
9.67 |
6.55 |
|
Net Profit Margin (%) |
4.12 |
4.6 |
6.31 |
3.63 |
|
Return Ratios |
Mar-20 |
Mar-19 |
Mar-18 |
Mar-16 |
|
Return on Networth / Equity (%) |
14.26 |
15.91 |
14.26 |
8.75 |
|
ROCE (%) |
12.21 |
16.26 |
18.13 |
6.84 |
|
Return On Assets (%) |
4.91 |
5.13 |
7.92 |
4.39 |
|
Type |
Dividend% |
Ex-Dividend date |
|
Final |
100 |
Jul 21, 2020 |
|
Interim |
100 |
Feb 25, 2020 |
|
Final |
125 |
Jul 16, 2019 |
|
Interim |
125 |
Feb 18, 2019 |
|
Final |
125 |
Jul 27, 2018 |
|
Share Holding Pattern in (%) |
|||||
|
Standalone |
Sep-20 |
Jun-20 |
Mar-20 |
Jun-19 |
|
|
Promoters |
40.83 |
40.91 |
40.91 |
40.95 |
|
|
Pledged |
0 |
0 |
0 |
0 |
|
|
FII/FPI |
1.5 |
1.66 |
2.22 |
3.42 |
|
|
Total DII |
20.54 |
20.76 |
20.55 |
20.38 |
|
|
Fin.Insts |
0.05 |
0.13 |
0.31 |
0.23 |
|
|
Insurance Co |
0 |
0 |
0 |
0 |
|
|
MF |
0.44 |
0.44 |
1.48 |
1.42 |
|
|
Others DIIs |
20.05 |
20.19 |
18.76 |
18.73 |
|
|
Others |
37.13 |
36.67 |
36.32 |
35.26 |
|
|
Total |
100 |
100 |
100 |
100.01 |
|
OTHER DETAILS :-
Roofing Solutions comprises: Fibre Cement Sheets and Coloured Steel Sheets
Building Solutions: Dry/Wet walling products
Polymer Solutions: Pipes &Fittings and Wall Putty
Flooring Solutions: Laminate Flooring, Engineered Wood Flooring, Resilient Flooring, Skirtings and Accessories
Others comprises: Wind Power and Material Handling and Processing Plant and Equipment
All numbers are exclusive of discontinued operations of Thermal Insulation business
Key competitive advantage
•21Manufacturing facilities
•38 Sales depots
•3 sales offices
•2,500 loyal stockiest /distributors
•6,500sub-dealers
•Deeper market penetration –Rural
•Urban real estate markets & green building products
•Low cost, high strength &best quality roofing products
•Healthy performance by Roofing Solutions as revival in demand was led by robust rural demand
•Building Solutions witnessed better Q-o-Q performance but continue witnessing head winds of a prolonged real estate slowdown
•Polymer Solutions growth supported by the attractive product portfolio and pan India spread
•Parador continues to show encouraging performance since the acquisition and is self-sustaining despite Europe being hit hard by CoVID-19
• Introduction of E-business, focus on DIY were key success factors to positively impact Parador Germany business
• Net worth increased to Rs.894 crore as on Sep30,2020 from Rs.743 crore as on Mar31,2020
• Net Debt reduced by Rs.212 crore during H1
• Net Debt to Equity at 0.59x as on Sep30,2020 vs.1.0x as on Mar31,2020
• Continue to take measures to strengthen the Balance Sheet
With the phased lifting of the lock down, signs of normalcy have started to return to the economy and businesses
•There have been marked improvements in capacity utilizations across all business verticals
• HIL‘s zero based planning to cut down variable and fixed costs have proven effective as margins have been strong despite the effects on the topline
• Despite being a seasonally weak quarter, continue to manufacture Roofing solution products at a high-capacity utilization of 74% as demand continues to be encouraging
• HIL continued looking at unlocked pockets in newer geographies and rural areas and capitalized on more current opportunities such as roofing for COVID centers and labour hutments built by the Government
•Building Solutions segment operated at 75-80% capacity and Polymer segment at over 50% capacity, seeing an encouraging increase in capacity utilization as compared to the previous quarter
• With their strong efficiency and reputed brand names, both segments have performed well in the new tier-II & III cities
•Parador Germany business successfully leveraged its core market for growth. The focus on expansion into newer markets is returning as the situation improves in most countries, like China where our JV has increased its foot print
• Parador operated at 70% plus capacity in H1 FY21 as the situation improved considerably in Europe
MESSAGE FROM MD & CEO (Excerpts):
“In H1 the team stood behind me and the organization in converting the crisis into an opportunity by showing huge tenacity and passion.
We have worked tirelessly to overcome the bottle necks that have resulted from Covid19 pandemic.
Maintain profitable growth for the company both in India and in Europe, whilst ensuring Health and safety of our team were our major priorities.
The implementation of smart digital systems, Business Intelligence platforms, Heat maps, Pincode-wise customer tracking and connects, acquisition of thousands of new counters and implementation of robust daily review processes fuelled by undaunted commitment of our employees have enabled consistent business performance.
As an organization, we were highly adaptive, agile and innovative in our bid to overcome this mammoth task.
Roofing solutions has gained its stride back and even though we are in a seasonally soft period the underlying demand trends stand robust.
The meticulous heat mapping by our teams has charged up the distribution set-up and this will bring solid traction even with pandemic abating.
We are working furiously to optimise our manufacturing recipe in order to accommodate the shift in suppliers for the fibre and the results should be evident soon.
With a healthy monsoon and several enabling initiatives aimed at the rural segment, we are looking at a continuance of similar performance trends in the coming quarters
Building solutions had been showing a very good run prior to the lockdown; which with the phases pick up in economic activity appears to be turning the corner in terms of utilisation.
We have a leadership portfolio already in blocks and panels and deep connects with customer base through our distribution channel. Whereas the broader economy is reviving the real estate segment will take a bit much longer. In the interim we have worked attacking costs out and to remain poised to switch back to high growth once opportunity allows.
Piping and putty are performing well, where the former is benefitting from our wider manufacturing footprint, reputed brand name and process efficiencies.
We have earmarked a prudent growth plan for both and remain comfortable of delivering to it.
Parador has shown remarkable resilience and flexibility, as it leveraged growth from it s historic core market so strongly through the lock down phases initially.
We have well-defined sales initiatives in the wings to further densify presence in those markets and add new territories within Europe through JVs or direct presence.
With the support of an integrated design - manufacture-sales set up we are confident of positioning the brand in bigger markets like the United States and China. Our JV in the Chinese region has expanded points of presence well and is raring to go once the effects to the pandemic wane.
OUTLOOK
Growth from leadership roofing business through optimised distribution and stronger marketing and introduction of “Charminar +” coloured fibre cement roofing sheets
Investment in creating opportunities for growth in AAC Blocks & Panels by way of capacity expansion
Focus on driving non-roofing portfolio comprising Building, Polymer & Flooring Solutions
Established advanced research based non-asbestos roofing solutions to focus on institutional & MNC customers in India and overseas market
Build a sustainable distribution network by establishing Sales Joint Ventures / subsidiaries in selected markets
About HIL:
Founded in 1946 and having completed 70 glorious years HIL Limited is an integral part of a burgeoning market place. It is the flagship company of the CK Birla Group, which is a growing US $ 2 billion conglomerate with diversified interests.
With over 25,000 employees, 41 manufacturing facilities and numerous patents and awards, the Group’s businesses operate in five continents.
Today, HIL is the acknowledged leader in the Building Material space in India. HIL has been honored with the title of “Asia’s Most Trusted Building Material Company for last 2 consecutive years by IBC INFO MEDIA.
HIL also holds two consumer Super Brand title and ranks amongst the top 20% of all other Super Brands across all categories in India.
HIL manufactures a comprehensive range of products. Its Charminar brand is an established market leader in roofing solutions. Birla Aerocon, provides Green Building Solutions that includes Dry Walling, Wet Walling and Plumbing solution.
Parador, the category leader in design & innovations, covers wooden flooring solutions. These are easy to install, energy efficient along with being superior in quality.
HIL’s strength lies in its state-of-the-art manufacturing facilities, an unmatched distribution network and diligent customer care.
HIL exports its products and machinery worldwide. The company is committed to support and provide environment-friendly products by following green and safe practices.
With reference to the health surveillance records of our employees, HIL can safely claim that our AC sheets do not pose a health hazard to its workers, people who live under them, and the general population at large.
In its quest for excellence, HIL has developed a world-class R&D facility with a team of highly qualified and dedicated professionals to develop and refresh technologies and processes continuously redefining industry standards leading to solutions that are enriched, cost-effective and environmentally friendly.
HIL has surged ahead with a deep commitment to re-greening the world: it has adopted a unique “five-way green ”philosophy to ensure that our products and processes are environmentally friendly from end-to-end. Over 30% of our energy needs are met from renewable sources. The company sources green raw materials with a low carbon foot print and processes the musing green manufacturing that produces least effluents, by products and emissions.
Finally, our end products are green, recyclable and have minimal environmental impact. HIL is truly dedicated to providing smart choices that ensure environmentally sustainable Solutions.
With HIL we can explore a world of possibilities in building our dreams for a greener and safer tomorrow.
NSElive
27 Nov, 2020 15:56
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