ACTION CONST. 2023-24 Annual Report Analysis

Mon, 5 Aug

ACTION CONST. 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.

ACTION CONST. Income Statement Analysis

• Operating income during the year rose 34.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 82.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 29.1% and finance costs increased by 125.2% YoY, respectively.
• Other income grew by 87.5% YoY.
• Net profit for the year grew by 89.7% YoY.
• Net profit margins during the year grew from 8.0% in FY23 to 11.3% in FY24.

ACTION CONST. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	21,597	29,138	34.9%
Other income	Rs m	411	771	87.5%
Total Revenues	Rs m	22,008	29,909	35.9%
Gross profit	Rs m	2,209	4,032	82.5%
Depreciation	Rs m	180	232	29.1%
Interest	Rs m	103	232	125.2%
Profit before tax	Rs m	2,337	4,339	85.6%
Tax	Rs m	608	1,057	74.0%
Profit after tax	Rs m	1,730	3,282	89.7%
Gross profit margin	%	10.2	13.8
Effective tax rate	%	26.0	24.4
Net profit margin	%	8.0	11.3

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ACTION CONST. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 55.0%.
• Current assets rose 51% and stood at Rs 14 billion, while fixed assets rose 30% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 23 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 42%.

ACTION CONST. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,186	12,291	33.8
Current Liabilities	Rs m	6,629	10,275	55.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	15,997	22,715	42.0
Current assets	Rs m	9,115	13,757	50.9
Fixed Assets	Rs m	6,883	8,958	30.2
Total Assets	Rs m	15,997	22,715	42.0

ACTION CONST. Cash Flow Statement Analysis

• ACTION CONST.'s cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 58.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 69.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -387 million, an improvement of 6% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 267 million from the Rs 158 million net cash flows seen during FY23.

ACTION CONST. 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	2,743	4,334	58.0%
Cash Flow from Investing Activities	Rs m	-2,175	-3,682	-
Cash Flow from Financing Activities	Rs m	-410	-387	-
Net Cash Flow	Rs m	158	267	69.6%

Current Valuations for ACTION CONST.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.6, an improvement from the EPS of Rs 14.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,274.0, stands at 44.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.3 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 32.2 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	181.4	244.7
TTM Earnings per share	Rs	14.5	27.6
Diluted earnings per share	Rs	14.5	27.6
Price to Cash Flow	x	25.4	32.2
TTM P/E ratio	x	28.0	44.0
Price / Book Value ratio	x	3.8	9.2
Market Cap	Rs m	34,772	112,998
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for ACTION CONST.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 deteriorated and stood at 19.7x during FY24, from 23.7x 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 26.7% during FY24, from 18.8% 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 37.2% during FY24, from 26.6% 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 15.5% during FY24, from 11.5% 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	1.3
Debtors’ Days	Days	286	206
Interest coverage	x	23.7	19.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.5	15.5
Return on equity	%	18.8	26.7
Return on capital employed	%	26.6	37.2

To see how ACTION CONST. has performed over the last 5 years, please visit here.

ACTION CONST. Share Price Performance

Over the last one year, ACTION CONST. share price has moved up from Rs 724.3 to Rs 1,274.0, registering a gain of Rs 549.7 or around 75.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 70,396.7 (down 4.2%). Over the last one year it has moved up from 43,070.0 to 70,396.7, a gain of 27,327 points (up 63.4%).

Overall, the S&P BSE SENSEX is up 18.6% over the year.

(To know more, check out historical annual results for ACTION CONST. and quarterly results for ACTION CONST.)