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AEROFLEX INDUSTRIES 2023-24 Annual Report Analysis

Wed, 12 Jun

AEROFLEX INDUSTRIES 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.

AEROFLEX INDUSTRIES Income Statement Analysis

• Operating income during the year rose 18.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.6% in FY24 as against 19.0% in FY23.
• Depreciation charges increased by 20.0% and finance costs decreased by 46.1% YoY, respectively.
• Other income grew by 22505.9% YoY.
• Net profit for the year grew by 38.5% YoY.
• Net profit margins during the year grew from 11.2% in FY23 to 13.1% in FY24.

AEROFLEX INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,695	3,178	18.0%
Other income	Rs m	0	38	22,505.9%
Total Revenues	Rs m	2,695	3,217	19.4%
Gross profit	Rs m	513	623	21.5%
Depreciation	Rs m	52	63	20.0%
Interest	Rs m	49	26	-46.1%
Profit before tax	Rs m	412	573	39.0%
Tax	Rs m	111	155	40.3%
Profit after tax	Rs m	302	418	38.5%
Gross profit margin	%	19.0	19.6
Effective tax rate	%	26.8	27.1
Net profit margin	%	11.2	13.1

For Investors: Our Big Prediction

AEROFLEX INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 808 million as compared to Rs 789 million in FY23, thereby witnessing an increase of 2.4%.
• Long-term debt down at Rs 1 million as compared to Rs 197 million during FY23, a fall of 99.7%.
• Current assets rose 81% and stood at Rs 3 billion, while fixed assets rose 65% and stood at Rs 951 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 75%.

AEROFLEX INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,141	2,933	157.0
Current Liabilities	Rs m	789	808	2.4
Long-term Debt	Rs m	197	1	-99.7
Total Liabilities	Rs m	2,140	3,749	75.2
Current assets	Rs m	1,544	2,798	81.1
Fixed Assets	Rs m	576	951	65.2
Total Assets	Rs m	2,140	3,749	75.2

AEROFLEX INDUSTRIES Cash Flow Statement Analysis

• AEROFLEX INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 439 million, an improvement of 1,059.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -349 million, an improvement of 269.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 903 million, an improvement of 2,414% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 993 million from the Rs -21 million net cash flows seen during FY23.

AEROFLEX INDUSTRIES 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	38	439	1,059.2%
Cash Flow from Investing Activities	Rs m	-95	-349	-
Cash Flow from Financing Activities	Rs m	36	903	2,413.8%
Net Cash Flow	Rs m	-21	993	-

Current Valuations for AEROFLEX INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.2, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 143.1, stands at 44.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 42.0 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	23.6	24.6
TTM Earnings per share	Rs	2.6	3.2
Diluted earnings per share	Rs	2.3	3.2
Price to Cash Flow	x	0.0	42.0
TTM P/E ratio	x	0.0	44.3
Price / Book Value ratio	x	0.0	6.9
Market Cap	Rs m	0	20,161
Dividends per share (Unadj.)	Rs	0.2	0.3

Ratio Analysis for AEROFLEX INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.5x during FY24, from 2.0x 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 22.8x during FY24, from 9.4x 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 14.2% during FY24, from 26.4% 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 20.4% during FY24, from 34.4% 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 11.8% during FY24, from 16.4% 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	2.0	3.5
Debtors’ Days	Days	91	1,087
Interest coverage	x	9.4	22.8
Debt to equity ratio	x	0.2	0.0
Return on assets	%	16.4	11.8
Return on equity	%	26.4	14.2
Return on capital employed	%	34.4	20.4

To see how AEROFLEX INDUSTRIES has performed over the last 5 years, please visit here.

AEROFLEX INDUSTRIES Share Price Performance

Over the last one year, AEROFLEX INDUSTRIES share price has moved up from Rs 0.0 to Rs 143.1, registering a gain of Rs 143.1 or around 0.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,496.8 (up 1.1%). Over the last one year it has moved up from 20,054.0 to 33,496.8, a gain of 13,443 points (up 67.0%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for AEROFLEX INDUSTRIES and quarterly results for AEROFLEX INDUSTRIES)