AMBALAL SARABHAI 2023-24 Annual Report Analysis

Mon, 10 Jun

AMBALAL SARABHAI 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.

AMBALAL SARABHAI Income Statement Analysis

• Operating income during the year rose 1.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.4% in FY24 as against 4.8% in FY23.
• Depreciation charges increased by 29.8% and finance costs increased by 124.8% YoY, respectively.
• Other income declined by 16.9% YoY.
• Net profit for the year declined by 50.4% YoY.
• Net profit margins during the year declined from 6.7% in FY23 to 3.3% in FY24.

AMBALAL SARABHAI Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,703	1,736	1.9%
Other income	Rs m	125	104	-16.9%
Total Revenues	Rs m	1,828	1,839	0.6%
Gross profit	Rs m	81	59	-27.1%
Depreciation	Rs m	28	36	29.8%
Interest	Rs m	27	61	124.8%
Profit before tax	Rs m	152	67	-56.2%
Tax	Rs m	37	10	-74.0%
Profit after tax	Rs m	114	57	-50.4%
Gross profit margin	%	4.8	3.4
Effective tax rate	%	24.5	14.6
Net profit margin	%	6.7	3.3

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

AMBALAL SARABHAI Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -0.5%.
• Long-term debt down at Rs 91 million as compared to Rs 104 million during FY23, a fall of 12.5%.
• Current assets rose 7% and stood at Rs 1 billion, while fixed assets fell 2% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 2%.

AMBALAL SARABHAI Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,309	1,371	4.7
Current Liabilities	Rs m	1,029	1,023	-0.5
Long-term Debt	Rs m	104	91	-12.5
Total Liabilities	Rs m	2,457	2,502	1.8
Current assets	Rs m	1,109	1,185	6.9
Fixed Assets	Rs m	1,348	1,317	-2.3
Total Assets	Rs m	2,457	2,502	1.8

AMBALAL SARABHAI Cash Flow Statement Analysis

• AMBALAL SARABHAI's cash flow from operating activities (CFO) during FY24 stood at Rs 47 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -29 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 million from the Rs -20 million net cash flows seen during FY23.

AMBALAL SARABHAI 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	57	47	-17.6%
Cash Flow from Investing Activities	Rs m	-168	-11	-
Cash Flow from Financing Activities	Rs m	91	-29	-
Net Cash Flow	Rs m	-20	6	-

Current Valuations for AMBALAL SARABHAI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.7, an decline from the EPS of Rs 1.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 48.0, stands at 43.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 37.3 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	22.2	22.7
TTM Earnings per share	Rs	1.5	0.7
Diluted earnings per share	Rs	1.5	0.7
Price to Cash Flow	x	11.1	37.3
TTM P/E ratio	x	12.9	43.8
Price / Book Value ratio	x	1.7	2.5
Market Cap	Rs m	2,274	3,450
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AMBALAL SARABHAI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.1x 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 2.1x during FY24, from 6.6x 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 4.1% during FY24, from 8.7% 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 8.7% during FY24, from 12.7% 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 4.7% during FY24, from 5.8% 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	1.1	1.2
Debtors’ Days	Days	586	552
Interest coverage	x	6.6	2.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.8	4.7
Return on equity	%	8.7	4.1
Return on capital employed	%	12.7	8.7

To see how AMBALAL SARABHAI has performed over the last 5 years, please visit here.

AMBALAL SARABHAI Share Price Performance

Over the last one year, AMBALAL SARABHAI share price has moved up from Rs 23.0 to Rs 48.0, registering a gain of Rs 25.0 or around 108.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 36,631.2 (up 0.9%). Over the last one year it has moved up from 24,181.0 to 36,631.2, a gain of 12,450 points (up 51.5%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for AMBALAL SARABHAI and quarterly results for AMBALAL SARABHAI)