Decrease in Revenue and Increase in Expenses Led to Decline in Net Profit by 36.41% for Himalayan Distillery in Q2
Sun, Feb 12, 2023 9:54 AM on Financial Analysis, Stock Market, Latest,
Himalayan Distillery Limited (HDL) has reported its second-quarter report with a decline in net profit by 36.41%. The net profit decreased to Rs. 29.42 Crores in this quarter from Rs. 46.27 Crores in the corresponding quarter of the previous year.
In this quarter, HDL reported a decline in sales revenue by 18.00%. The revenue decreased to Rs. 2.76 Arba compared to the corresponding quarter of the previous year. On the other hand, the other income of the company has increased by 473.32% coming up to Rs. 61.46 Lakhs.
The company spent Rs. 3.5 crores on administrative expenses and Rs. 23.4 Crores as Selling and Distribution Expenses.
Management Analysis: The country's economic downturn has an impact on the liquor industry specifically. The sales and distribution of the company's wines have suffered as a result of this effect. When various brands of alcohol are introduced to the market for sale and distribution, the corporation also runs the danger of intense rivalry. Sales for this period have dropped by 18% from the same time previous year. Even though the business's labor costs are marginally lower than they were a year ago, the increase in administrative, sales distribution, and financial costs has resulted in a decline in net profit.
HDL’s paid-up capital stood at Rs. 2.42 Arba and reserve and surplus stood at Rs.55.74 Crores; with a decline of 23.84%. HDL also distributed 60% bonus shares and 10% cash dividend (including tax) for FY 2078/79. These bonus dividends have been capitalized by the company.
The company reported its annaulized EPS of Rs. 24.22. Its net worth per share stands at Rs 122.94. The company traded at a P/E multiple of 112.41 times.
Major financial highlights
| Particulars (Rs in 000) | Himalayan Distillery Limited | ||
|---|---|---|---|
| Q2 2079/80 | Q2 2078/79 | Difference | |
| Paid Up Capital | 2,429,567 | 1,518,479 | 60.00% |
| Other Equity (Retained Earnings) | 557,458 | 731,919 | -23.84% |
| Property, Plant and Equipment | 476,704 | 494,094 | -3.52% |
| Investment | 101,100 | 69,000 | 46.52% |
| Trade Receivables | 2,537,476 | 1,913,983 | 32.58% |
| Revenue from Operation | 2,768,110 | 3,375,563 | -18.00% |
| Other Income | 6,146 | 1,072 | 473.32% |
| Administration Expenses | 35,163 | 33,659 | 4.47% |
| Selling and Distribution Expenses | 234,406 | 208,709 | 12.31% |
| Net Profit | 294,263 | 462,729 | -36.41% |
| Annualized EPS (In Rs.) | 24.22 | ||
| Net Worth per Share (In Rs.) | 122.94 | 148.20 | -17.04% |
| Qtr End P/E Ratio | 112.41 | ||
| Liquidity Ratio | 3.84 | ||
