ARFIN INDIA 2023-24 Annual Report Analysis

Wed, 28 Aug

ARFIN INDIA 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.

ARFIN INDIA Income Statement Analysis

• Operating income during the year fell 3.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.7% in FY24 as against 5.7% in FY23.
• Depreciation charges increased by 10.0% and finance costs increased by 29.1% YoY, respectively.
• Other income declined by 23.5% YoY.
• Net profit for the year declined by 20.3% YoY.
• Net profit margins during the year declined from 2.2% in FY23 to 1.8% in FY24.

ARFIN INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,646	4,494	-3.3%
Other income	Rs m	26	20	-23.5%
Total Revenues	Rs m	4,672	4,514	-3.4%
Gross profit	Rs m	263	302	14.8%
Depreciation	Rs m	36	39	10.0%
Interest	Rs m	144	186	29.1%
Profit before tax	Rs m	110	97	-11.5%
Tax	Rs m	7	15	125.3%
Profit after tax	Rs m	103	82	-20.3%
Gross profit margin	%	5.7	6.7
Effective tax rate	%	6.1	15.4
Net profit margin	%	2.2	1.8

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ARFIN INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 12.6%.
• Long-term debt down at Rs 279 million as compared to Rs 353 million during FY23, a fall of 21.1%.
• Current assets rose 10% and stood at Rs 2 billion, while fixed assets fell 1% and stood at Rs 664 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 7%.

ARFIN INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	881	964	9.4
Current Liabilities	Rs m	1,412	1,590	12.6
Long-term Debt	Rs m	353	279	-21.1
Total Liabilities	Rs m	2,668	2,853	6.9
Current assets	Rs m	1,993	2,186	9.7
Fixed Assets	Rs m	670	664	-0.9
Total Assets	Rs m	2,668	2,853	6.9

ARFIN INDIA Cash Flow Statement Analysis

• ARFIN INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 46 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -36 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -82 million, an improvement of 40% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -71 million from the Rs 74 million net cash flows seen during FY23.

ARFIN INDIA 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	294	46	-84.2%
Cash Flow from Investing Activities	Rs m	-82	-36	-
Cash Flow from Financing Activities	Rs m	-138	-82	-
Net Cash Flow	Rs m	74	-71	-

Current Valuations for ARFIN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an decline from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.8, stands at 73.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.8 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 53.7 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	29.2	28.3
TTM Earnings per share	Rs	0.6	0.5
Diluted earnings per share	Rs	0.6	0.5
Price to Cash Flow	x	24.4	53.7
TTM P/E ratio	x	32.8	73.4
Price / Book Value ratio	x	4.0	6.8
Market Cap	Rs m	3,506	6,517
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ARFIN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.4x 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 1.5x during FY24, from 1.8x 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 8.5% during FY24, from 11.7% 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 improved and stood at 22.8% during FY24, from 20.6% 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 9.4% during FY24, from 9.3% 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	1.4	1.4
Debtors’ Days	Days	448	433
Interest coverage	x	1.8	1.5
Debt to equity ratio	x	0.4	0.3
Return on assets	%	9.3	9.4
Return on equity	%	11.7	8.5
Return on capital employed	%	20.6	22.8

To see how ARFIN INDIA has performed over the last 5 years, please visit here.

ARFIN INDIA Share Price Performance

Over the last one year, ARFIN INDIA share price has moved down from Rs 42.2 to Rs 38.8, registering a loss of Rs 3.4 or around 8.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,581.5 (up 0.1%). Over the last one year it has moved up from 21,357.5 to 32,581.5, a gain of 11,224 points (up 52.6%).

Overall, the S&P BSE SENSEX is up 26.1% over the year.

(To know more, check out historical annual results for ARFIN INDIA and quarterly results for ARFIN INDIA)