RATING

RECOMMENDATION

Buy

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  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

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RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

  • Hira Ferro Alloys Growth

Get detailed information about the Hira Ferro Alloys Unlisted shares. In this research report, you will get to know about Hira Ferro Alloys Key Ratios data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth, Hira Ferro Alloys Peers and Book Value Growth.

Hira Ferro Alloys Revenue Growth

Growth in %

  • 4.46%

    1 Year

  • 7.38%

    3 Year

  • 9.22%

    5 Year

The performance of the company during FY21 was satisfactory due to demand in the steel sector and better price realization. In FY21, total revenue of the company increased by 4% in FY21 from FY20, which in absolute terms is an increase of Rs. 13 Cr in FY21, which was a result of an increase in the ferro alloys products sold at 36513 million tones of ferro alloys in FY21 as compared to 34076 million tones in FY20. Other income, on the other hand, contributed towards the growth in the revenue, which grew by 50% in FY21 from FY20 due to profit on sales of property, plant and equipment and a dividend received in FY21.

Hira Ferro Alloys Net Profit Growth(PAT)

Growth in %

  • 452.16%

    1 Year

  • 54.24%

    3 Year

  • NA

    5 Year

The company realised an abnormal growth of 452% in FY21 from FY20 in its net income. The increase in net income has been the result of prudent cost management by the company. Along with the increase in revenue growth by 4%, total expenses of the company have shown a de-growth of 25% in FY21 from FY20, primarily due to the power and fuel expenses, which have fallen by Rs. 13 Cr. in FY21 from FY20. The COVID-19 curbs and restrictions, which limit the use of power in their manufacturing plants, are the cause of the decrease in power and fuel consumption expenses.

Hira Ferro Alloys EPS Growth

Growth in %

  • 453.33%

    1 Year

  • 54.25%

    3 Year

  • NA

    5 Year

Increase in the EPS of the company has been explained by the growth in net profits of the company as there were no changes in the number of shares of the company. 

  • Hira Ferro Alloys Book Value Growth

Growth in %

  • 26.48%

    1 Year

  • 7.34%

    3 Year

  • 7.91%

    5 Year

Book value of the company has also witness a growth of 26% in FY21 from FY20 on account of increase in the other comprehensive income (which primarily constitutes investments in equity instrument's) part of the company. Other comprehensive income has increased by the factor of 86x, which in absolute terms is an increase of Rs. 66 Cr. in FY21 from FY20. 

Hira Ferro Alloys EBITDA Growth

Growth in %

  • 113.89%

    1 Year

  • 20.25%

    3 Year

  • 32.54%

    5 Year

The EBITDA of the company has seen a sharp growth of 114% in FY21 from FY20, on account of economies of scale, which can be seen with the higher EBITDA margin in FY21 compared to FY20 by a factor of 2x. It must be noted that the company has aggregative produced 35304 MT of ferroalloys in FY21 from 34852 MT in FY21 and with power and fuel expenses cut in half, whereas the major problem faced by the industry is the underutilization of capacity constrained by the high cost of power and fuel expenses. 

Hira Ferro Alloys Operating Profit Growth

Growth in %

  • 188.81%

    1 Year

  • 25.47%

    3 Year

  • 184.14%

    5 Year

Growth in the EBIT of the company in FY21 is explained by the growth in the EBITDA of the company in the particular financial year. Despite being a heavy asset model company, Hira Ferro Alloys did not make any significant purchases on fixed assets in the respective year. Hence, there were no abnormal changes in the depreciation amount. 

Hira Ferro Alloys Asset Growth

Growth in %

  • 33.12%

    1 Year

  • 6.93%

    3 Year

  • 10.31%

    5 Year

Total assets of the company in FY21 grew by 33% from FY20. This growth has been explained by the growth in the non-current assets of the company, which also witnessed a growth of 33% from FY20, mostly due to the increase in the investment activity that the company has made in its associate and Rs. 79 Cr. worth of Godwari Power & Ispat (GPAI) shares pledged for credit facilities sanctioned to GPAI and the company and advances to vendors of Rs. 20 Cr.

Hira Ferro Alloys Cash Flow from Operations

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

Cash flow operation has fallen significantly despite generating higher net profits in FY21, as there were significant changes in the working capital, mostly due to increase in the inventory as well as decrease in the liabilities and provision in FY21 from FY20. This was due to poor inventory management, which can be interpreted from fall in the inventory turnover ratio from 8 in FY20 to 3 in FY21. 

  • Hira Ferro Alloys Solvency Ratios

The company has good solvency position and has been continuously aiming to keep getting better in terms of solvency on year-on-year basis.

Hira Ferro Alloys D/E Ratio

Despite an increase in overall debt of 11% in FY21 from FY20, debt to equity has decreased by 25% in FY21 from FY20 on account of increase in the company's equity, which grew by 63% in FY21 from FY20 primarily due to an increase in comprehensive income. It's worth noting that the business's equity multiplier has decreased as a result of the company financing most of its assets with debt rather than equity.

Hira Ferro Alloys Current Ratio

Current ratio of the company grew by 11% in FY21 from FY20, primarily due to increase in the current assets of the company, which grew by 32% in FY21 over FY20. This was a result of growth in the raw materials as an inventory of the company by 83%, which can also be seen as poor asset inventory turnover of the company in FY21 from FY20. Current liability on the other hand, has showed de-growth of 3% in FY21 from FY20. The company has increased its debt mostly using non-current liabilities of the company and hence current liabilities were least impacted in FY21. 

Hira Ferro Alloys Quick Ratio

Quick ratio of the company has showed growth of 11% in FY21 from FY20. Keeping inventory aside, which was a major contributor towards the growth in the current ratio of the company. Quick ratio has improved by increase in the cash and cash equivalent of the company on account of Rs. 7 Cr. as margin money deposits that were pledged with various banks for availing LC, BG facilities and pledged with other govt. departments.

Hira Ferro Alloys Interest Coverage Ratio

Total interest expense for the company increased by 5% in FY21 over FY20, which in turn is low when compared with the growth in the operating profits of the company of 189% in FY21 over FY20, thus increasing the interest coverage ratio of the company in FY21. 

  • Hira Ferro Alloys Operating Efficiency

The company has been able to make significant improvements in its operating efficiency. Higher revenue generation on account of higher production and selling of ferroalloys, which were due to favourable demand in the steel sector and prudent cost management of the company, especially power and fuel, which play a significant role in the production of ferro alloys, as the ferroalloy industry spends 40–70% on power and consumption to produce ferro alloys. 

Hira Ferro Alloys Operating Profit EBIT Margin(OPM)

Hira Ferro Alloys Profit Before Tax Margin (PBT Margin)

Hira Ferro Alloys Profit After Tax Margin (PAT Margin)

  • Hira Ferro Alloys Profitablity Ratio

Hira Ferro Alloys Return on Equity(RoE)

The return on equity of the company in FY21 grew by 336% from FY20. As per Dupont analysis, growth in ROE has been explained by net income margin, which increased by 5x in FY21 from FY20 due to prudent cost management and an increase in the sales of the company. Asset turnover, on the other hand, has fallen due to COVID-19 lockdown and restrictions, and the company has financed most of its assets using debt, which grew by 11%, leading to a fall in the equity multiplier of the company as well. 

Hira Ferro Alloys Return on Capital Employed(RoCE)

Total capital employed by the company in FY21 grew by 58% from FY20. With such an increase in the capital employed in the company, the abnormal growth in the profits of the company has explained the increase in the total return on capital employed by a factor of 4.7x.

Hira Ferro Alloys Return to Assets (RoA)

The return on assets of the company grew by a factor of 2x. It is worth mentioning that the asset turnover of the company witnessed a de-growth of 11%. Hence, this increase in the return on assets of the company is explained by prudent cost management of the company and thus the higher net profit generated by the company. 

  • Hira Ferro Alloys Valuation Ratios

Hira Ferro Alloys Dividend Yield

Hira Ferro Alloys Earning Yield