AIA ENGINEERING 2023-24 Annual Report Analysis

Mon, 19 Aug

AIA ENGINEERING 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.

AIA ENGINEERING Income Statement Analysis

• Operating income during the year fell 1.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 27.6% in FY24 as against 25.4% in FY23.
• Depreciation charges increased by 7.8% and finance costs increased by 34.6% YoY, respectively.
• Other income grew by 20.0% YoY.
• Net profit for the year grew by 7.6% YoY.
• Net profit margins during the year grew from 21.5% in FY23 to 23.4% in FY24.

AIA ENGINEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	49,088	48,538	-1.1%
Other income	Rs m	2,345	2,814	20.0%
Total Revenues	Rs m	51,433	51,352	-0.2%
Gross profit	Rs m	12,454	13,403	7.6%
Depreciation	Rs m	930	1,003	7.8%
Interest	Rs m	248	334	34.6%
Profit before tax	Rs m	13,620	14,880	9.2%
Tax	Rs m	3,055	3,510	14.9%
Profit after tax	Rs m	10,565	11,370	7.6%
Gross profit margin	%	25.4	27.6
Effective tax rate	%	22.4	23.6
Net profit margin	%	21.5	23.4

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AIA ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 9 billion in FY23, thereby witnessing an decrease of -14.4%.
• Current assets rose 13% and stood at Rs 60 billion, while fixed assets rose 13% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 75 billion as against Rs 66 billion during FY23, thereby witnessing a growth of 13%.

AIA ENGINEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	56,913	66,577	17.0
Current Liabilities	Rs m	8,750	7,486	-14.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	66,305	74,942	13.0
Current assets	Rs m	53,125	59,986	12.9
Fixed Assets	Rs m	13,180	14,956	13.5
Total Assets	Rs m	66,305	74,942	13.0

AIA ENGINEERING Cash Flow Statement Analysis

• AIA ENGINEERING's cash flow from operating activities (CFO) during FY24 stood at Rs 9 billion, an improvement of 4.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -8 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 508 million net cash flows seen during FY23.

AIA ENGINEERING 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	8,677	9,027	4.0%
Cash Flow from Investing Activities	Rs m	-12,083	-8,185	-
Cash Flow from Financing Activities	Rs m	3,950	-2,110	-
Net Cash Flow	Rs m	508	-1,272	-

Current Valuations for AIA ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 120.5, an improvement from the EPS of Rs 112.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,592.5, stands at 38.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 27.6 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	520.4	514.6
TTM Earnings per share	Rs	112.0	120.5
Diluted earnings per share	Rs	112.0	120.5
Price to Cash Flow	x	23.8	27.6
TTM P/E ratio	x	25.9	38.6
Price / Book Value ratio	x	3.8	5.1
Market Cap	Rs m	215,682	341,699
Dividends per share (Unadj.)	Rs	16.0	16.0

Ratio Analysis for AIA ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.0x during FY24, from 6.1x 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 45.5x during FY24, from 55.8x 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 17.1% during FY24, from 18.6% 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 22.9% during FY24, from 24.4% 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 15.6% during FY24, from 16.3% 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	6.1	8.0
Debtors’ Days	Days	640	662
Interest coverage	x	55.8	45.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.3	15.6
Return on equity	%	18.6	17.1
Return on capital employed	%	24.4	22.9

To see how AIA ENGINEERING has performed over the last 5 years, please visit here.

AIA ENGINEERING Share Price Performance

Over the last one year, AIA ENGINEERING share price has moved up from Rs 3,624.4 to Rs 4,592.5, registering a gain of Rs 968.1 or around 26.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,960.9 (up 0.2%). Over the last one year it has moved up from 43,172.9 to 72,960.9, a gain of 29,788 points (up 69.0%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for AIA ENGINEERING and quarterly results for AIA ENGINEERING)