AKM LACE AND EMBROTEX 2023-24 Annual Report Analysis

Fri, 29 Nov

AKM LACE AND EMBROTEX 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.

AKM LACE AND EMBROTEX Income Statement Analysis

• Operating income during the year fell 44.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 2.1% in FY24 as against 0.0% in FY23.
• Depreciation charges increased by 3.7% increased by 0.0% YoY, respectively.
• Other income grew by 0.2% YoY.
• Net profit for the year declined by 0.8% YoY.
• Net profit margins during the year grew from 2.0% in FY23 to 3.6% in FY24.

AKM LACE AND EMBROTEX Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	132	73	-44.6%
Other income	Rs m	4	4	0.2%
Total Revenues	Rs m	136	77	-43.2%
Gross profit	Rs m	0	-2	NA
Depreciation	Rs m	0	0	3.7%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	4	2	-39.4%
Tax	Rs m	1	0	NA
Profit after tax	Rs m	3	3	-0.8%
Gross profit margin	%	0.0	-2.1
Effective tax rate	%	31.1	-13.4
Net profit margin	%	2.0	3.6

Get savings of Rs 6,050: Join our small cap research service today!

AKM LACE AND EMBROTEX Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 million as compared to Rs 3 million in FY23, thereby witnessing an increase of 20.0%.
• Current assets rose 1,493% and stood at Rs 156 million, while fixed assets rose 2% and stood at Rs 94 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 251 million as against Rs 102 million during FY23, thereby witnessing a growth of 146%.

AKM LACE AND EMBROTEX Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	74	218	192.9
Current Liabilities	Rs m	3	3	20.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	102	251	145.6
Current assets	Rs m	10	156	1,493.0
Fixed Assets	Rs m	92	94	2.2
Total Assets	Rs m	102	251	145.6

AKM LACE AND EMBROTEX Cash Flow Statement Analysis

• AKM LACE AND EMBROTEX's cash flow from operating activities (CFO) during FY24 stood at Rs 3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -138 million, an improvement of 133.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 146 million, an improvement of 488% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 10 million from the Rs 0 million net cash flows seen during FY23.

AKM LACE AND EMBROTEX 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	34	3	-92.7%
Cash Flow from Investing Activities	Rs m	-59	-138	-
Cash Flow from Financing Activities	Rs m	25	146	487.9%
Net Cash Flow	Rs m	0	10	3,486.2%

Current Valuations for AKM LACE AND EMBROTEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an decline from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 454.0, stands at 2,410.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 29.0 times, while the price to sales ratio stands at 76.8 times.
• The company's price to cash flow (P/CF) ratio stood at 303.3 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	43.9	5.9
TTM Earnings per share	Rs	0.9	0.2
Diluted earnings per share	Rs	0.2	0.2
Price to Cash Flow	x	289.4	303.3
TTM P/E ratio	x	318.8	2,410.7
Price / Book Value ratio	x	1.9	4.0
Market Cap	Rs m	145	879
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AKM LACE AND EMBROTEX

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 45.0x during FY24, from 3.4x 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 233.0x during FY24, from 383.0x 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 1.2% during FY24, from 3.5% 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 declined and down at 1.1% during FY24, from 5.1% 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 1.1% during FY24, from 2.6% 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	3.4	45.0
Debtors’ Days	Days	106	6
Interest coverage	x	383.0	233.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.6	1.1
Return on equity	%	3.5	1.2
Return on capital employed	%	5.1	1.1

To see how AKM LACE AND EMBROTEX has performed over the last 5 years, please visit here.

AKM LACE AND EMBROTEX Share Price Performance

Over the last one year, AKM LACE AND EMBROTEX share price has moved {{varPrevCurrYearUpDown}} from Rs {{varLastYearSameDayValue}} to Rs {{varCurrYearCurrDayValue}}, registering a {{varPrevCurrYearComp}} of Rs {{varPrevCurrYearCompValue}} or around {{varPrevCurrYearCompPerValue}}%.

Meanwhile, the{{varBSEIndexName}} is trading at Rs {{varBSEIndexValue}} ({{varBSEIndexPrevCurrComp}} {{varBSEIndexPrevCurrPerValue}}%). Over the last one year it has moved {{varBSEIndexPrevCurrYearComp}} from {{varBSEIndexPrevYearValue}} to {{varBSEIndexCurrentYearValue}}, a {{varBSEIndexPrevCurrGainLoss}} of {{varBSEIndexPrevCurrSubstraction}} points ({{varBSEIndexPrevCurrYearCompOverYear}} {{varBSEIndexPrevCurrPerValueOverYear}}%).

Overall, the {{varBSESensexName}} is {{varBSESensexCurrStatus}} {{varBSESensexCurrValue}}% over the year.

(To know more, check out historical annual results for AKM LACE AND EMBROTEX and quarterly results for AKM LACE AND EMBROTEX)