A-1 ACID 2023-24 Annual Report Analysis

Tue, 6 Aug

A-1 ACID 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.

A-1 ACID Income Statement Analysis

• Operating income during the year fell 37.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 98.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.0% in FY24 as against 1.3% in FY23.
• Depreciation charges decreased by 10.2% and finance costs decreased by 58.7% YoY, respectively.
• Other income grew by 0.2% YoY.
• Net profit for the year declined by 59.9% YoY.
• Net profit margins during the year declined from 1.1% in FY23 to 0.7% in FY24.

A-1 ACID Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,306	2,061	-37.6%
Other income	Rs m	64	64	0.2%
Total Revenues	Rs m	3,369	2,125	-36.9%
Gross profit	Rs m	43	1	-98.3%
Depreciation	Rs m	40	36	-10.2%
Interest	Rs m	18	8	-58.7%
Profit before tax	Rs m	48	21	-56.7%
Tax	Rs m	12	6	-46.4%
Profit after tax	Rs m	37	15	-59.9%
Gross profit margin	%	1.3	0.0
Effective tax rate	%	23.8	29.5
Net profit margin	%	1.1	0.7

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A-1 ACID Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 124 million as compared to Rs 143 million in FY23, thereby witnessing an decrease of -13.2%.
• Long-term debt down at Rs 27 million as compared to Rs 47 million during FY23, a fall of 43.0%.
• Current assets fell 6% and stood at Rs 432 million, while fixed assets fell 11% and stood at Rs 210 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 642 million as against Rs 694 million during FY23, thereby witnessing a fall of 8%.

A-1 ACID Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	484	478	-1.3
Current Liabilities	Rs m	143	124	-13.2
Long-term Debt	Rs m	47	27	-43.0
Total Liabilities	Rs m	694	642	-7.5
Current assets	Rs m	458	432	-5.7
Fixed Assets	Rs m	236	210	-11.1
Total Assets	Rs m	694	642	-7.5

A-1 ACID Cash Flow Statement Analysis

• A-1 ACID's cash flow from operating activities (CFO) during FY24 stood at Rs 108 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -28 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -58 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 22 million from the Rs 0 million net cash flows seen during FY23.

A-1 ACID 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	187	108	-42.3%
Cash Flow from Investing Activities	Rs m	-35	-28	-
Cash Flow from Financing Activities	Rs m	-153	-58	-
Net Cash Flow	Rs m	0	22	-

Current Valuations for A-1 ACID

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an decline from the EPS of Rs 3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 346.5, stands at 270.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.3 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 83.4 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	287.5	179.3
TTM Earnings per share	Rs	3.2	1.3
Diluted earnings per share	Rs	3.2	1.3
Price to Cash Flow	x	50.9	83.4
TTM P/E ratio	x	106.3	270.7
Price / Book Value ratio	x	7.6	8.8
Market Cap	Rs m	3,656	4,225
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for A-1 ACID

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY24, from 3.2x 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 3.8x during FY24, from 3.6x 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 3.1% 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 declined and down at 5.6% during FY24, from 12.5% 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 declined and down at 3.5% during FY24, from 7.9% 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	3.2	3.5
Debtors’ Days	Days	421	550
Interest coverage	x	3.6	3.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.9	3.5
Return on equity	%	7.6	3.1
Return on capital employed	%	12.5	5.6

To see how A-1 ACID has performed over the last 5 years, please visit here.

A-1 ACID Share Price Performance

Over the last one year, A-1 ACID share price has moved down from Rs 373.7 to Rs 346.5, registering a loss of Rs 27.2 or around 7.3%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

(To know more, check out historical annual results for A-1 ACID and quarterly results for A-1 ACID)