AMBIKA COTTON 2023-24 Annual Report Analysis

Thu, 29 Aug

AMBIKA COTTON 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.

AMBIKA COTTON Income Statement Analysis

• Operating income during the year fell 2.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.4% in FY24 as against 20.7% in FY23.
• Depreciation charges decreased by 7.1% and finance costs increased by 176.3% YoY, respectively.
• Other income grew by 64.3% YoY.
• Net profit for the year declined by 43.7% YoY.
• Net profit margins during the year declined from 13.2% in FY23 to 7.6% in FY24.

AMBIKA COTTON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,475	8,235	-2.8%
Other income	Rs m	138	228	64.3%
Total Revenues	Rs m	8,614	8,462	-1.8%
Gross profit	Rs m	1,758	1,106	-37.1%
Depreciation	Rs m	298	277	-7.1%
Interest	Rs m	74	204	176.3%
Profit before tax	Rs m	1,525	852	-44.1%
Tax	Rs m	406	223	-45.1%
Profit after tax	Rs m	1,119	630	-43.7%
Gross profit margin	%	20.7	13.4
Effective tax rate	%	26.6	26.1
Net profit margin	%	13.2	7.6

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AMBIKA COTTON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 14.3%.
• Current assets rose 6% and stood at Rs 8 billion, while fixed assets rose 10% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 7%.

AMBIKA COTTON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,166	8,589	5.2
Current Liabilities	Rs m	1,785	2,041	14.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,222	10,899	6.6
Current assets	Rs m	7,979	8,430	5.7
Fixed Assets	Rs m	2,243	2,469	10.1
Total Assets	Rs m	10,222	10,899	6.6

AMBIKA COTTON Cash Flow Statement Analysis

• AMBIKA COTTON's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion, an improvement of 72.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -259 million, an improvement of 559.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 429 million, an improvement of 262% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs -1 billion net cash flows seen during FY23.

AMBIKA COTTON 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	-798	-1,378	-
Cash Flow from Investing Activities	Rs m	-39	-259	-
Cash Flow from Financing Activities	Rs m	-264	429	-
Net Cash Flow	Rs m	-1,102	-1,208	-

Current Valuations for AMBIKA COTTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 109.9, an decline from the EPS of Rs 195.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,741.0, stands at 15.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.3 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	1,479.1	1,437.1
TTM Earnings per share	Rs	195.3	109.9
Diluted earnings per share	Rs	195.4	110.0
Price to Cash Flow	x	5.6	10.3
TTM P/E ratio	x	7.0	15.6
Price / Book Value ratio	x	1.4	1.1
Market Cap	Rs m	11,034	9,337
Dividends per share (Unadj.)	Rs	35.0	35.0

Ratio Analysis for AMBIKA COTTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.1x during FY24, from 4.5x 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 5.2x during FY24, from 21.7x 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 declined and down at 7.3% during FY24, from 13.7% 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 12.3% during FY24, from 19.6% 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 declined and down at 7.6% during FY24, from 11.7% 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	4.5	4.1
Debtors’ Days	Days	168	113
Interest coverage	x	21.7	5.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.7	7.6
Return on equity	%	13.7	7.3
Return on capital employed	%	19.6	12.3

To see how AMBIKA COTTON has performed over the last 5 years, please visit here.

AMBIKA COTTON Share Price Performance

Over the last one year, AMBIKA COTTON share price has moved up from Rs 1,568.9 to Rs 1,741.0, registering a gain of Rs 172.1 or around 11.0%.

Overall, the S&P BSE SENSEX is up 25.9% over the year.

(To know more, check out historical annual results for AMBIKA COTTON and quarterly results for AMBIKA COTTON)