Twist in Results of HBL POWER SYSTEMS Ltd.‏

18/06/2015 20:45:56
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Twist And Turn

Hbl Power Systems Ltd. has declared 2014 -15 results with TWIST's and TURNS.

2013 - 14 Results are inclusive of its subsidiaries and joint venture companies .

Whereas incase of 2014 - 15 it has declared STANDALONE annual results without including results of its subsidiaies and its joint venture companies.

Hbl has taken shelter under the pretext of subsidiary companies and joint venture companies results are not prepared within the due-time . It shows that Hbl want to have some more time to present the picture of the company to its stake holders .

Hbl has four subsidiaries, viz, Hbl Germany GMBH , Hbl America Inc. , SCIL Infracon Pvt. Ltd. and Hbl Suntech LLP. and also has one joint venture Gulf Batteries Company Ltd. (Kingdom of saudi arabia) . 

However, if you remove the veil and observe the facts Hbl has declared excellent result for 2014 - 15 .

During the year 2013 - 14 company has incurred loss of  Rs. 4.43 Crores from ordinary activities .

But, during the year 2014 - 15 company has earned profit of 40.35 Crores from ordinary activities .

During the year company's profit has gone up by more than 10 times , for this profit we need to add profit from subsidiaies and joint venture companies also.

During the year 2013 - 14 through the exceptional item of capital gains company has made extraordinary additional gain of Rs. 56.53 Crores. 

During the year 2014 - 15 through the exceptional item of inventory losses and damage due to Hud-Hud Cyclone. it has incurred extraordinary loss of Rs. 15.03 Crores .

Because of these extraordinary items company shows net profit (after tax) of Rs. 45 Crores in 2013 - 14 and only Rs. 14.62 Crores in 2014 - 15 .

So extraordinary items are not to be considered for valuation of the stock price .


Tax Payment

During 2013 - 14 it has allocated Rs. 7.09 Crores towards Income Tax Payments.

Whereas in 2014 - 15 it has allocated 50% more to income tax amounting to Rs. 10.7 Crores .


It has declared 20% Dividend on the Face Value of Rs.1/- for the year 2014 - 15 .

Strength of subsidiaries

Out of all these subsidiaries SCIL Infracon Pvt. Ltd. manufactures cement concrete pile foundations .

These concrete piles stood the test of Hud-Hud Cyclone and quality of concrete piles is known to the rest of the world.

With this unmatchable quality , company has got very good orders and company is unable to supply also.

Because of Cyclone tested quality , these pile foundation got new usages in different industries like big construction projects , railway signalling foundation and rural electrification.

Company has got orders to supply to unmet demand and also establishing new plant near Guntur to cater to the needs of newly building up Andhra Capital Amaravati.

German subsidiary Hbl Germany GMBH might be also making good progress .


Summing up

With this cues long term investors can wait certainly without any doubt to reap good capital gains . 

Short Term people will be influenced by market mechanism .


Share Guru Has Recommended HBL POWER SYSTEMS LTD. share at Rs. 7.50 on 23th Aug, 2013 . 

For Further Information Please Refer Share Guru 5/22nd issue Dated  AUG 26 - SEP 01 -2013 .

Please Follow the below link for full analysis on HBL POWER SYSTEMS LTD



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