AHLUWALIA CONTRACTS 2023-24 Annual Report Analysis

Wed, 11 Sep

AHLUWALIA CONTRACTS 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.

AHLUWALIA CONTRACTS Income Statement Analysis

• Operating income during the year rose 35.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 91.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY24 as against 10.7% in FY23.
• Depreciation charges increased by 72.4% and finance costs increased by 45.5% YoY, respectively.
• Other income grew by 24.6% YoY.
• Net profit for the year grew by 93.2% YoY.
• Net profit margins during the year grew from 6.8% in FY23 to 9.7% in FY24.

AHLUWALIA CONTRACTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,384	38,553	35.8%
Other income	Rs m	295	368	24.6%
Total Revenues	Rs m	28,679	38,921	35.7%
Gross profit	Rs m	3,040	5,826	91.7%
Depreciation	Rs m	388	669	72.4%
Interest	Rs m	331	481	45.5%
Profit before tax	Rs m	2,617	5,045	92.8%
Tax	Rs m	677	1,296	91.5%
Profit after tax	Rs m	1,940	3,748	93.2%
Gross profit margin	%	10.7	15.1
Effective tax rate	%	25.9	25.7
Net profit margin	%	6.8	9.7

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AHLUWALIA CONTRACTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 8.8%.
• Long-term debt stood at Rs 7 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 31% and stood at Rs 26 billion, while fixed assets rose 15% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 32 billion as against Rs 25 billion during FY23, thereby witnessing a growth of 28%.

AHLUWALIA CONTRACTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,283	15,999	30.3
Current Liabilities	Rs m	11,161	12,141	8.8
Long-term Debt	Rs m	0	7	0.0
Total Liabilities	Rs m	24,666	31,621	28.2
Current assets	Rs m	20,042	26,306	31.3
Fixed Assets	Rs m	4,624	5,315	14.9
Total Assets	Rs m	24,666	31,621	28.2

AHLUWALIA CONTRACTS Cash Flow Statement Analysis

• AHLUWALIA CONTRACTS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 86.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 207 million, an improvement of 229% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -314 million from the Rs 1 billion net cash flows seen during FY23.

AHLUWALIA CONTRACTS 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	3,013	2,575	-14.6%
Cash Flow from Investing Activities	Rs m	-1,658	-3,096	-
Cash Flow from Financing Activities	Rs m	-161	207	-
Net Cash Flow	Rs m	1,195	-314	-

Current Valuations for AHLUWALIA CONTRACTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 56.0, an improvement from the EPS of Rs 29.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,231.8, stands at 23.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 13.2 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	423.7	575.5
TTM Earnings per share	Rs	29.0	56.0
Diluted earnings per share	Rs	29.0	56.0
Price to Cash Flow	x	16.6	13.2
TTM P/E ratio	x	19.9	23.2
Price / Book Value ratio	x	2.6	3.6
Market Cap	Rs m	31,901	58,371
Dividends per share (Unadj.)	Rs	0.4	0.5

Ratio Analysis for AHLUWALIA CONTRACTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 1.8x 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 11.5x during FY24, from 8.9x 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 23.4% during FY24, from 15.8% 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 34.5% during FY24, from 24.0% 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 13.4% during FY24, from 9.2% 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	1.8	2.2
Debtors’ Days	Days	780	706
Interest coverage	x	8.9	11.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.2	13.4
Return on equity	%	15.8	23.4
Return on capital employed	%	24.0	34.5

To see how AHLUWALIA CONTRACTS has performed over the last 5 years, please visit here.

AHLUWALIA CONTRACTS Share Price Performance

Over the last one year, AHLUWALIA CONTRACTS share price has moved up from Rs 719.8 to Rs 1,231.8, registering a gain of Rs 512.1 or around 71.1%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,087.0 (down 0.3%). Over the last one year it has moved up from 4,774.4 to 8,087.0, a gain of 3,313 points (up 69.4%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for AHLUWALIA CONTRACTS and quarterly results for AHLUWALIA CONTRACTS)