TRANSFORMERS & RECTIFIERS 2023-24 Annual Report Analysis

Wed, 24 Apr

TRANSFORMERS & RECTIFIERS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TRANSFORMERS & RECTIFIERS Income Statement Analysis

• Operating income during the year fell 7.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.4% in FY24 as against 8.7% in FY23.
• Depreciation charges increased by 0.8% and finance costs increased by 5.9% YoY, respectively.
• Other income declined by 33.0% YoY.
• Net profit for the year grew by 11.0% YoY.
• Net profit margins during the year grew from 3.0% in FY23 to 3.6% in FY24.

TRANSFORMERS & RECTIFIERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,960	12,947	-7.3%
Other income	Rs m	87	58	-33.0%
Total Revenues	Rs m	14,047	13,005	-7.4%
Gross profit	Rs m	1,209	1,341	10.9%
Depreciation	Rs m	245	247	0.8%
Interest	Rs m	480	508	5.9%
Profit before tax	Rs m	571	644	12.8%
Tax	Rs m	147	174	18.1%
Profit after tax	Rs m	423	470	11.0%
Gross profit margin	%	8.7	10.4
Effective tax rate	%	25.8	27.0
Net profit margin	%	3.0	3.6

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TRANSFORMERS & RECTIFIERS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -23.8%.
• Long-term debt down at Rs 531 million as compared to Rs 638 million during FY23, a fall of 16.7%.
• Current assets fell 0% and stood at Rs 10 billion, while fixed assets fell 10% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 12 billion during FY23, thereby witnessing a fall of 2%.

TRANSFORMERS & RECTIFIERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,941	5,544	40.7
Current Liabilities	Rs m	7,077	5,394	-23.8
Long-term Debt	Rs m	638	531	-16.7
Total Liabilities	Rs m	11,857	11,647	-1.8
Current assets	Rs m	9,897	9,886	-0.1
Fixed Assets	Rs m	1,960	1,761	-10.2
Total Assets	Rs m	11,857	11,647	-1.8

TRANSFORMERS & RECTIFIERS Cash Flow Statement Analysis

• TRANSFORMERS & RECTIFIERS's cash flow from operating activities (CFO) during FY24 stood at Rs 291 million, an improvement of 2.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -224 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -98 million, an improvement of 78% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -31 million from the Rs -73 million net cash flows seen during FY23.

TRANSFORMERS & RECTIFIERS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	284	291	2.7%
Cash Flow from Investing Activities	Rs m	92	-224	-
Cash Flow from Financing Activities	Rs m	-449	-98	-
Net Cash Flow	Rs m	-73	-31	-

Current Valuations for TRANSFORMERS & RECTIFIERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an improvement from the EPS of Rs 3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 693.3, stands at 210.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.8 times, while the price to sales ratio stands at 7.6 times.
• The company's price to cash flow (P/CF) ratio stood at 45.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	105.3	90.8
TTM Earnings per share	Rs	3.2	3.3
Diluted earnings per share	Rs	3.0	3.3
Price to Cash Flow	x	12.2	45.1
TTM P/E ratio	x	19.3	210.2
Price / Book Value ratio	x	1.8	5.8
Market Cap	Rs m	7,115	32,369
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for TRANSFORMERS & RECTIFIERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.4x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 2.3x during FY24, from 2.2x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.5% during FY24, from 10.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 19.0% during FY24, from 22.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 8.4% during FY24, from 7.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.4	1.8
Debtors’ Days	Days	1,661	1,731
Interest coverage	x	2.2	2.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.6	8.4
Return on equity	%	10.7	8.5
Return on capital employed	%	22.9	19.0

To see how TRANSFORMERS & RECTIFIERS has performed over the last 5 years, please visit here.

TRANSFORMERS & RECTIFIERS Share Price Performance

Over the last one year, TRANSFORMERS & RECTIFIERS share price has moved up from Rs 66.3 to Rs 693.3, registering a gain of Rs 627.0 or around 945.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 62,948.0 (up 1.3%). Over the last one year it has moved up from 35,290.3 to 62,948.0, a gain of 27,658 points (up 78.4%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for TRANSFORMERS & RECTIFIERS and quarterly results for TRANSFORMERS & RECTIFIERS)