ABOUT HINDUSTHAN ENGINEERING & INDUSTRIES LIMITED UNLISTED SHARE
HINDUSTHAN ENGINEERING & INDUSTRIES LIMITED is a multi-product multi-location Company in India. The company is primarily engaged in the business of Railway Rolling Stock, Railway Wagons, Jute goods, and Gas based Chemicals. Hindusthan Engineering & Industries Limited owns the largest steel foundry in the private sector of India and is also the first foundry of India to get certified by The Association of American Railroads, U.S.A. The company can produce Hadfield Manganese Steel Crossings of sizes from up to 1 in 24, and also manufactures Scissor, Obtuse, and Diamond crossings for the metro as well as conventional tracks. The company is currently supplying Couplers, Bogies, Draft Gears, and CMS Crossings to the Ministry of Railways. It is one of the largest producers of Bolsters, Bogies, Couplers, Side Frames, Draft Gears, and other components for Rolling Stock. The company is exporting Bogies to Australia, South Korea, and North America. Hindusthan Engineering & Industries Limited is also the first company to develop anode yokes for aluminum smelters in India. Hindusthan Engineering & Industries Limited is also engaged in the manufacturing of cyanides and more than 40% of production is exported.
BOARD OF DIRECTORS
Shri V A Mody (Chairman)
Shri Satish Kapur (Director)
Shri Biswajit Choudhuri (Director)
Dr. Ranjan Ghosh (Director)
Smt. Archana Agarwal (Director)
Shri A K D Singh (Technical Executive Director)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
|
Name of the Company |
Subsidiary/Associate |
% of shares held |
|
Hindusthan Vidyut Corporation Limited (HVCL) |
Subsidiary |
100% |
SHAREHOLDING PATTERN (As of 31-03-2020)
|
SHAREHOLDER’S NAME |
NO. OF SHARES |
% OF TOTAL SHARES OF THE COMPANY |
|
Promoters Shareholding |
1,22,98,387 |
81.98% |
|
Public Shareholding |
27,02,395 |
18.02% |
|
Total |
1,50,00,782 |
100.00% |
INDUSTRY OUTLOOK
In 2019, India ranked second as the world’s largest steel producer with a production of 111.2 million tonnes. The sustainable growth of the steel sector can be attributed to the domestic availability of raw materials including iron ore and cost-effective labor. The steel sector is one of the major contributors to the Indian economy. The Steel Industry of India has been divided into three categories, Major producers, main producers, and secondary producers.
Production of crude steel and finished steel in India increased to 108.5 Million Tonnes and 101.03 Million Tonnes in FY 2020 respectively. Consumption of finished steel in India grew at a CAGR of 5.2% from FY 2016 to FY 2020. In FY 2020, India exported 8.24 million tonnes of finished steel and imported 6.69 million tonnes of it. From April 2020 to February 2021, the export of finished steel stood at 9.49 Million tonnes and imports stood at 4.25 million tonnes.
Indian railways are now turning to the private sector for redesigning wagons to carry a different range of goods like coils, fly ash, and cars. There are already 2.8 lakh conventional goods wagons in the country. However, there is a need for around 10,000 new designs of wagons in the railway sector for the transportation of goods like trucks, cement, cars, steel coil, and fly ash.
PROFIT & LOSS STATEMENT OF HINDUSTHAN ENGINEERING & INDUSTRIES LIMITED (In Rs. Lakhs)
|
PARTICULARS |
2020 |
2019 |
2018 |
|
Revenue from Operations |
81,018.52 |
87,934.50 |
69,091.14 |
|
EBITDA |
4,346.49 |
7,838.37 |
4,883.10 |
|
EBITDA margin |
5.36% |
8.91% |
7.07% |
|
Finance Cost |
1,424.07 |
1,167.62 |
429.89 |
|
Depreciation |
3,257.53 |
3,274.92 |
3,227.51 |
|
Other Income |
2,150.88 |
3,108.05 |
2,719.34 |
|
Share of profit from associates |
0.00 |
1.31 |
0.16 |
|
Profit Before Tax |
1,815.77 |
6,503.88 |
3,945.04 |
|
Total Tax |
-352.20 |
2,532.92 |
1,455.33 |
|
Profit After Tax (PAT) |
2,167.97 |
3,970.96 |
2,489.71 |
|
EPS |
14.45 |
26.48 |
16.60 |
BALANCE SHEET OF HINDUSTHAN ENGINEERING & INDUSTRIES LIMITED (In Rs. Lakhs)
|
PARTICULARS |
2020 |
2019 |
|
ASSETS |
||
|
NON CURRENT ASSETS |
||
|
Tangible assets |
36,892.39 |
38,388.47 |
|
Intangible assets |
1,392.05 |
1,391.54 |
|
Financial assets |
9,519.10 |
12,144.79 |
|
Other non-current assets |
5,050.90 |
4,779.71 |
|
TOTAL NON-CURRENT ASSETS |
52,854.44 |
56,704.51 |
|
CURRENT ASSETS |
||
|
Inventories |
24,020.21 |
25,666.79 |
|
Financial assets |
23,383.70 |
21,736.87 |
|
Trade receivables |
15,473.41 |
13,790.84 |
|
Cash and Cash equivalents |
22,619.03 |
16,629.87 |
|
Other current assets |
6,121.42 |
7,042.60 |
|
TOTAL CURRENT ASSETS |
91,617.77 |
84,866.97 |
|
TOTAL ASSETS |
1,44,472.21 |
1,41,571.48 |
|
EQUITY AND LIABILITIES |
||
|
EQUITY |
||
|
Equity share capital |
1,500.08 |
1,500.08 |
|
Other Equity |
1,04,500.14 |
1,02,160.42 |
|
TOTAL EQUITY |
1,06,000.22 |
1,03,660.50 |
|
LIABILITIES |
||
|
NON CURRENT LIABILITIES |
||
|
Borrowings |
47.84 |
86.48 |
|
Provisions |
5,946.21 |
6,009.27 |
|
Tax liabilities |
2,331.71 |
3,495.30 |
|
TOTAL NON-CURRENT LIABILITIES |
8,325.76 |
9,591.05 |
|
CURRENT LIABILITIES |
||
|
Borrowings |
14,263.13 |
11,519.19 |
|
Financial liabilities |
3,010.53 |
3,115.96 |
|
Trade payables |
10,031.94 |
9,641.27 |
|
Provisions |
796.41 |
816.77 |
|
Other current liabilities |
2,044.22 |
3,226.74 |
|
TOTAL CURRENT LIABILITIES |
30,146.23 |
28,319.93 |
|
TOTAL LIABILITIES |
38,471.99 |
37,910.98 |
|
TOTAL EQUITY AND LIABILITIES |
1,44,472.21 |
1,41,571.48 |
DIVIDEND AND RETAINED EARNINGS
|
PARTICULARS |
2020 |
2019 |
2018 |
|
Dividend (In Rs.) (final + interim) |
Nil |
Nil |
Nil |
|
Retained Earnings (Consolidated) (In Rs. Lakhs) |
41,108.12 |
38,940.15 |
34,967.88 |
PERFORMANCE OF THE COMPANY
Revenue from Operations of the company decreased by 7.86% from Rs. 87,934.50 lakhs in FY 2019 to Rs. 81,018.52 lakhs in FY 2020.
EBITDA of the company decreased by 44.55% from Rs. 7,838.37 lakhs in FY 2019 to Rs. 4,346.49 lakhs in FY 2020.
The EBITDA margins of the company reduced from 8.91% in FY 2019 to 5.36% in FY 2020.
The net Profit of the company decreased significantly by 45.40% from Rs. 3,970.96 lakhs in FY 2019 to Rs. 2,167.97 lakhs in FY 2020.
The current Ratio of the company as of 31st March 2020 was 3.03.
The debt-to-equity ratio of the company as of 31st March 2020 was 0.14.
The company has not given any dividends for the past three years.
The book value of the company as of 31st March 2020 was Rs. 7,062.9.
