A.K.CAPITAL 2023-24 Annual Report Analysis

Tue, 1 Oct

A.K.CAPITAL 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.

A.K.CAPITAL Income Statement Analysis

• Operating income during the year rose 26.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 62.5% in FY24 as against 62.0% in FY23.
• Depreciation charges increased by 7.1% and finance costs increased by 49.2% YoY, respectively.
• Other income grew by 13.1% YoY.
• Net profit for the year grew by 4.6% YoY.
• Net profit margins during the year declined from 21.4% in FY23 to 17.7% in FY24.

A.K.CAPITAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,137	5,226	26.3%
Other income	Rs m	6	6	13.1%
Total Revenues	Rs m	4,143	5,233	26.3%
Gross profit	Rs m	2,565	3,264	27.3%
Depreciation	Rs m	79	85	7.1%
Interest	Rs m	1,312	1,958	49.2%
Profit before tax	Rs m	1,179	1,228	4.1%
Tax	Rs m	295	302	2.4%
Profit after tax	Rs m	884	925	4.6%
Gross profit margin	%	62.0	62.5
Effective tax rate	%	25.0	24.6
Net profit margin	%	21.4	17.7

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A.K.CAPITAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 15.4%.
• Long-term debt stood at Rs 17 billion as compared to Rs 13 billion during FY23, a growth of 35.8%.
• Current assets rose 22% and stood at Rs 37 billion, while fixed assets rose 19% and stood at Rs 885 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 38 billion as against Rs 31 billion during FY23, thereby witnessing a growth of 22%.

A.K.CAPITAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,394	9,191	9.5
Current Liabilities	Rs m	9,667	11,156	15.4
Long-term Debt	Rs m	12,736	17,294	35.8
Total Liabilities	Rs m	31,177	38,055	22.1
Current assets	Rs m	30,347	37,170	22.5
Fixed Assets	Rs m	742	885	19.2
Total Assets	Rs m	31,177	38,055	22.1

A.K.CAPITAL Cash Flow Statement Analysis

• A.K.CAPITAL's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 663.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion, an improvement of 220.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 122% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -30 million from the Rs -85 million net cash flows seen during FY23.

A.K.CAPITAL 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	445	3,399	663.2%
Cash Flow from Investing Activities	Rs m	-2,297	-7,354	-
Cash Flow from Financing Activities	Rs m	1,767	3,925	122.1%
Net Cash Flow	Rs m	-85	-30	-

Current Valuations for A.K.CAPITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 140.2, an improvement from the EPS of Rs 134.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,110.0, stands at 7.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 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	626.8	791.8
TTM Earnings per share	Rs	134.0	140.2
Diluted earnings per share	Rs	134.0	140.2
Price to Cash Flow	x	2.9	5.1
TTM P/E ratio	x	3.2	7.9
Price / Book Value ratio	x	0.4	0.6
Market Cap	Rs m	3,056	5,182
Dividends per share (Unadj.)	Rs	12.0	16.0

Ratio Analysis for A.K.CAPITAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 3.1x 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 1.6x during FY24, from 1.9x 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 declined and down at 10.1% during FY24, from 10.5% 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 12.0% during FY24, from 11.8% 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 7.6% during FY24, from 7.0% 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	3.1	3.3
Debtors’ Days	Days	49	14
Interest coverage	x	1.9	1.6
Debt to equity ratio	x	1.5	1.9
Return on assets	%	7.0	7.6
Return on equity	%	10.5	10.1
Return on capital employed	%	11.8	12.0

To see how A.K.CAPITAL has performed over the last 5 years, please visit here.

A.K.CAPITAL Share Price Performance

Over the last one year, A.K.CAPITAL share price has moved up from Rs 720.0 to Rs 1,110.0, registering a gain of Rs 390.1 or around 54.2%.

Overall, the S&P BSE SENSEX is up 27.5% over the year.

(To know more, check out historical annual results for A.K.CAPITAL and quarterly results for A.K.CAPITAL)