ANDHRA SUGAR 2023-24 Annual Report Analysis

Thu, 17 Oct

ANDHRA SUGAR 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.

ANDHRA SUGAR Income Statement Analysis

• Operating income during the year fell 20.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 62.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.7% in FY24 as against 12.2% in FY23.
• Depreciation charges increased by 12.7% and finance costs decreased by 53.9% YoY, respectively.
• Other income grew by 29.7% YoY.
• Net profit for the year declined by 70.4% YoY.
• Net profit margins during the year declined from 7.8% in FY23 to 2.9% in FY24.

ANDHRA SUGAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,676	18,940	-20.0%
Other income	Rs m	289	375	29.7%
Total Revenues	Rs m	23,965	19,315	-19.4%
Gross profit	Rs m	2,881	1,086	-62.3%
Depreciation	Rs m	671	757	12.7%
Interest	Rs m	41	19	-53.9%
Profit before tax	Rs m	2,458	685	-72.1%
Tax	Rs m	622	142	-77.1%
Profit after tax	Rs m	1,836	543	-70.4%
Gross profit margin	%	12.2	5.7
Effective tax rate	%	25.3	20.8
Net profit margin	%	7.8	2.9

Don't Miss: Key Information for Long-term Investors

ANDHRA SUGAR Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -8.6%.
• Long-term debt down at Rs 6 million as compared to Rs 36 million during FY23, a fall of 84.4%.
• Current assets fell 8% and stood at Rs 9 billion, while fixed assets rose 7% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 22 billion during FY23, thereby witnessing a growth of 0%.

ANDHRA SUGAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,413	15,829	2.7
Current Liabilities	Rs m	3,232	2,954	-8.6
Long-term Debt	Rs m	36	6	-84.4
Total Liabilities	Rs m	21,557	21,600	0.2
Current assets	Rs m	9,922	9,167	-7.6
Fixed Assets	Rs m	11,613	12,411	6.9
Total Assets	Rs m	21,557	21,600	0.2

ANDHRA SUGAR Cash Flow Statement Analysis

• ANDHRA SUGAR's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -227 million, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 174 million from the Rs -100 million net cash flows seen during FY23.

ANDHRA SUGAR 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	2,858	1,417	-50.4%
Cash Flow from Investing Activities	Rs m	-2,044	-1,015	-
Cash Flow from Financing Activities	Rs m	-914	-227	-
Net Cash Flow	Rs m	-100	174	-

Current Valuations for ANDHRA SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an decline from the EPS of Rs 13.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 108.0, stands at 33.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	174.7	139.7
TTM Earnings per share	Rs	13.5	4.0
Diluted earnings per share	Rs	13.5	4.0
Price to Cash Flow	x	5.9	11.5
TTM P/E ratio	x	8.0	33.8
Price / Book Value ratio	x	1.2	0.9
Market Cap	Rs m	18,802	14,950
Dividends per share (Unadj.)	Rs	2.0	1.0

Ratio Analysis for ANDHRA SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.1x 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 37.0x during FY24, from 60.6x 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 3.4% during FY24, from 11.9% 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 4.4% during FY24, from 16.2% 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 2.6% during FY24, from 8.7% 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	3.1
Debtors’ Days	Days	357	364
Interest coverage	x	60.6	37.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	2.6
Return on equity	%	11.9	3.4
Return on capital employed	%	16.2	4.4

To see how ANDHRA SUGAR has performed over the last 5 years, please visit here.

ANDHRA SUGAR Share Price Performance

Over the last one year, ANDHRA SUGAR share price has moved down from Rs 120.1 to Rs 108.0, registering a loss of Rs 12.1 or around 10.0%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for ANDHRA SUGAR and quarterly results for ANDHRA SUGAR)