AMIC FORGING LTD. 2023-24 Annual Report Analysis

Mon, 14 Oct

AMIC FORGING LTD. 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.

AMIC FORGING LTD. Income Statement Analysis

• Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.1% in FY24 as against 11.7% in FY23.
• Depreciation charges increased by 18.2% and finance costs decreased by 33.8% YoY, respectively.
• Other income grew by 245.1% YoY.
• Net profit for the year grew by 41.2% YoY.
• Net profit margins during the year grew from 8.5% in FY23 to 11.0% in FY24.

AMIC FORGING LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,159	1,261	8.9%
Other income	Rs m	10	34	245.1%
Total Revenues	Rs m	1,168	1,295	10.9%
Gross profit	Rs m	136	165	21.4%
Depreciation	Rs m	6	7	18.2%
Interest	Rs m	8	5	-33.8%
Profit before tax	Rs m	132	186	41.4%
Tax	Rs m	34	48	42.3%
Profit after tax	Rs m	98	138	41.2%
Gross profit margin	%	11.7	13.1
Effective tax rate	%	25.5	25.6
Net profit margin	%	8.5	11.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

AMIC FORGING LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 244 million as compared to Rs 367 million in FY23, thereby witnessing an decrease of -33.6%.
• Long-term debt down at Rs 27 million as compared to Rs 43 million during FY23, a fall of 35.7%.
• Current assets rose 56% and stood at Rs 481 million, while fixed assets rose 46% and stood at Rs 441 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 921 million as against Rs 611 million during FY23, thereby witnessing a growth of 51%.

AMIC FORGING LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	198	646	225.7
Current Liabilities	Rs m	367	244	-33.6
Long-term Debt	Rs m	43	27	-35.7
Total Liabilities	Rs m	611	921	50.8
Current assets	Rs m	309	481	55.6
Fixed Assets	Rs m	301	441	46.3
Total Assets	Rs m	611	921	50.8

AMIC FORGING LTD. Cash Flow Statement Analysis

• AMIC FORGING LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -80 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -104 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 290 million, an improvement of 651% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 107 million from the Rs -1 million net cash flows seen during FY23.

AMIC FORGING LTD. 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	178	-80	-
Cash Flow from Investing Activities	Rs m	-126	-104	-
Cash Flow from Financing Activities	Rs m	-53	290	-
Net Cash Flow	Rs m	-1	107	-

Current Valuations for AMIC FORGING LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.2, an decline from the EPS of Rs 114.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,398.0, stands at 106.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 22.7 times, while the price to sales ratio stands at 11.6 times.
• The company's price to cash flow (P/CF) ratio stood at 40.7 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	1,347.1	120.3
TTM Earnings per share	Rs	114.0	13.2
Diluted earnings per share	Rs	9.3	13.2
Price to Cash Flow	x	0.0	40.7
TTM P/E ratio	x	0.0	106.0
Price / Book Value ratio	x	0.0	9.2
Market Cap	Rs m	0	5,923
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AMIC FORGING LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 0.8x 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 36.5x during FY24, from 17.6x 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 21.4% during FY24, from 49.4% 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 28.4% during FY24, from 57.9% 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 17.3% 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	0.8	2.0
Debtors’ Days	Days	685	844
Interest coverage	x	17.6	36.5
Debt to equity ratio	x	0.2	0.0
Return on assets	%	17.3	15.6
Return on equity	%	49.4	21.4
Return on capital employed	%	57.9	28.4

To see how AMIC FORGING LTD. has performed over the last 5 years, please visit here.

AMIC FORGING LTD. Share Price Performance

Over the last one year, AMIC FORGING LTD. share price has moved up from Rs 0.0 to Rs 1,398.0, registering a gain of Rs 1,398.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

(To know more, check out historical annual results for AMIC FORGING LTD. and quarterly results for AMIC FORGING LTD.)