AARTI SURFACTANTS 2023-24 Annual Report Analysis

Mon, 29 Jul

AARTI SURFACTANTS 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.

AARTI SURFACTANTS Income Statement Analysis

• Operating income during the year fell 1.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY24 as against 7.9% in FY23.
• Depreciation charges increased by 3.6% and finance costs decreased by 5.1% YoY, respectively.
• Other income declined by 60.2% YoY.
• Net profit for the year grew by 67.9% YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 3.6% in FY24.

AARTI SURFACTANTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,013	5,899	-1.9%
Other income	Rs m	3	1	-60.2%
Total Revenues	Rs m	6,016	5,900	-1.9%
Gross profit	Rs m	477	621	30.1%
Depreciation	Rs m	155	160	3.6%
Interest	Rs m	148	140	-5.1%
Profit before tax	Rs m	178	322	80.8%
Tax	Rs m	51	109	113.1%
Profit after tax	Rs m	127	213	67.9%
Gross profit margin	%	7.9	10.5
Effective tax rate	%	28.6	33.7
Net profit margin	%	2.1	3.6

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AARTI SURFACTANTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -9.0%.
• Long-term debt down at Rs 479 million as compared to Rs 733 million during FY23, a fall of 34.6%.
• Current assets rose 9% and stood at Rs 2 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 5%.

AARTI SURFACTANTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,680	2,181	29.8
Current Liabilities	Rs m	1,421	1,292	-9.0
Long-term Debt	Rs m	733	479	-34.6
Total Liabilities	Rs m	4,036	4,223	4.6
Current assets	Rs m	1,824	1,995	9.4
Fixed Assets	Rs m	2,213	2,228	0.7
Total Assets	Rs m	4,036	4,223	4.6

AARTI SURFACTANTS Cash Flow Statement Analysis

• AARTI SURFACTANTS's cash flow from operating activities (CFO) during FY24 stood at Rs 520 million, an improvement of 111.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -162 million, an improvement of 52.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -371 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -14 million from the Rs 62 million net cash flows seen during FY23.

AARTI SURFACTANTS 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	245	520	111.9%
Cash Flow from Investing Activities	Rs m	-107	-162	-
Cash Flow from Financing Activities	Rs m	-77	-371	-
Net Cash Flow	Rs m	62	-14	-

Current Valuations for AARTI SURFACTANTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.1, an improvement from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 639.9, stands at 29.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 14.9 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	709.1	695.6
TTM Earnings per share	Rs	15.0	25.1
Diluted earnings per share	Rs	15.0	25.2
Price to Cash Flow	x	13.6	14.9
TTM P/E ratio	x	30.2	29.6
Price / Book Value ratio	x	3.7	2.5
Market Cap	Rs m	6,190	5,560
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AARTI SURFACTANTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.3x 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 3.3x 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 improved and stood at 9.8% during FY24, from 7.6% 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 improved and stood at 17.4% during FY24, from 13.5% 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 6.8% 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	1.3	1.5
Debtors’ Days	Days	397	434
Interest coverage	x	2.2	3.3
Debt to equity ratio	x	0.4	0.2
Return on assets	%	6.8	8.4
Return on equity	%	7.6	9.8
Return on capital employed	%	13.5	17.4

To see how AARTI SURFACTANTS has performed over the last 5 years, please visit here.

AARTI SURFACTANTS Share Price Performance

Over the last one year, AARTI SURFACTANTS share price has moved up from Rs 607.0 to Rs 639.9, registering a gain of Rs 32.9 or around 5.4%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for AARTI SURFACTANTS and quarterly results for AARTI SURFACTANTS)