AMAL PRODUCT 2023-24 Annual Report Analysis

Fri, 16 Aug

AMAL PRODUCT 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.

AMAL PRODUCT Income Statement Analysis

• Operating income during the year rose 40.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.8% in FY24 as against 9.1% in FY23.
• Depreciation charges increased by 34.9% and finance costs decreased by 11.7% YoY, respectively.
• Other income declined by 79.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 26.3% in FY23 to 2.0% in FY24.

AMAL PRODUCT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	613	861	40.4%
Other income	Rs m	8	2	-79.4%
Total Revenues	Rs m	621	863	38.8%
Gross profit	Rs m	-56	154	NA
Depreciation	Rs m	67	90	34.9%
Interest	Rs m	42	37	-11.7%
Profit before tax	Rs m	-157	28	NA
Tax	Rs m	4	11	156.5%
Profit after tax	Rs m	-161	17	NA
Gross profit margin	%	-9.1	17.8
Effective tax rate	%	-2.7	38.6
Net profit margin	%	-26.3	2.0

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AMAL PRODUCT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 183 million as compared to Rs 250 million in FY23, thereby witnessing an decrease of -26.7%.
• Long-term debt down at Rs 185 million as compared to Rs 244 million during FY23, a fall of 24.2%.
• Current assets fell 13% and stood at Rs 182 million, while fixed assets fell 11% and stood at Rs 888 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 1 billion during FY23, thereby witnessing a fall of 12%.

AMAL PRODUCT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	684	699	2.2
Current Liabilities	Rs m	250	183	-26.7
Long-term Debt	Rs m	244	185	-24.2
Total Liabilities	Rs m	1,211	1,070	-11.7
Current assets	Rs m	210	182	-13.4
Fixed Assets	Rs m	1,001	888	-11.3
Total Assets	Rs m	1,211	1,070	-11.7

AMAL PRODUCT Cash Flow Statement Analysis

• AMAL PRODUCT's cash flow from operating activities (CFO) during FY24 stood at Rs 212 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -87 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -144 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -20 million from the Rs 27 million net cash flows seen during FY23.

AMAL PRODUCT 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	-104	212	-
Cash Flow from Investing Activities	Rs m	-160	-87	-
Cash Flow from Financing Activities	Rs m	292	-144	-
Net Cash Flow	Rs m	27	-20	-

Current Valuations for AMAL PRODUCT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an improvement from the EPS of Rs -13.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 336.8, stands at 86.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 35.6 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	49.6	69.7
TTM Earnings per share	Rs	-13.0	1.4
Diluted earnings per share	Rs	-13.0	1.4
Price to Cash Flow	x	-23.8	35.6
TTM P/E ratio	x	-13.9	86.8
Price / Book Value ratio	x	5.4	5.5
Market Cap	Rs m	3,723	3,825
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AMAL PRODUCT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x 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 1.7x during FY24, from -2.7x 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 2.4% during FY24, from -23.6% 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 improved and stood at 7.4% during FY24, from -12.4% 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 improved and stood at 5.1% during FY24, from -9.8% 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	1.0
Debtors’ Days	Days	251	231
Interest coverage	x	-2.7	1.7
Debt to equity ratio	x	0.4	0.3
Return on assets	%	-9.8	5.1
Return on equity	%	-23.6	2.4
Return on capital employed	%	-12.4	7.4

To see how AMAL PRODUCT has performed over the last 5 years, please visit here.

AMAL PRODUCT Share Price Performance

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(To know more, check out historical annual results for AMAL PRODUCT and quarterly results for AMAL PRODUCT)