TARC 2023-24 Annual Report Analysis

Mon, 14 Oct

TARC 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.

TARC Income Statement Analysis

• Operating income during the year fell 69.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 70.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 42.1% in FY24 as against 43.3% in FY23.
• Depreciation charges decreased by 9.8% and finance costs increased by 16.4% YoY, respectively.
• Other income grew by 65.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 5.5% in FY23 to 69.1% in FY24.

TARC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,687	1,114	-69.8%
Other income	Rs m	60	100	65.8%
Total Revenues	Rs m	3,747	1,214	-67.6%
Gross profit	Rs m	1,596	469	-70.6%
Depreciation	Rs m	72	65	-9.8%
Interest	Rs m	1,172	1,364	16.4%
Profit before tax	Rs m	411	-860	NA
Tax	Rs m	208	-90	NA
Profit after tax	Rs m	204	-770	NA
Gross profit margin	%	43.3	42.1
Effective tax rate	%	50.5	10.4
Net profit margin	%	5.5	-69.1

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

TARC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 85.5%.
• Long-term debt down at Rs 9 billion as compared to Rs 11 billion during FY23, a fall of 18.3%.
• Current assets rose 6% and stood at Rs 17 billion, while fixed assets rose 14% and stood at Rs 17 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 34 billion as against Rs 31 billion during FY23, thereby witnessing a growth of 10%.

TARC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,516	12,746	-5.7
Current Liabilities	Rs m	6,858	12,723	85.5
Long-term Debt	Rs m	11,316	9,248	-18.3
Total Liabilities	Rs m	30,816	33,884	10.0
Current assets	Rs m	15,682	16,617	6.0
Fixed Assets	Rs m	15,134	17,267	14.1
Total Assets	Rs m	30,816	33,884	10.0

TARC Cash Flow Statement Analysis

• TARC's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -391 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -470 million from the Rs 894 million net cash flows seen during FY23.

TARC 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	-810	1,582	-
Cash Flow from Investing Activities	Rs m	745	-391	-
Cash Flow from Financing Activities	Rs m	959	-1,661	-
Net Cash Flow	Rs m	894	-470	-

Current Valuations for TARC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.6, an decline from the EPS of Rs 0.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 258.0, stands at -66.3 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 68.3 times.
• The company's price to cash flow (P/CF) ratio stood at -45.7 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	12.5	3.8
TTM Earnings per share	Rs	0.7	-2.6
Diluted earnings per share	Rs	0.7	-2.6
Price to Cash Flow	x	36.6	-45.7
TTM P/E ratio	x	49.5	-66.3
Price / Book Value ratio	x	0.9	2.5
Market Cap	Rs m	12,151	32,238
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TARC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 2.3x 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 0.4x during FY24, from 1.4x 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 -6.0% during FY24, from 1.5% 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 2.3% during FY24, from 6.4% 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 declined and down at 1.8% during FY24, from 4.5% 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	2.3	1.3
Debtors’ Days	Days	95	204
Interest coverage	x	1.4	0.4
Debt to equity ratio	x	0.8	0.7
Return on assets	%	4.5	1.8
Return on equity	%	1.5	-6.0
Return on capital employed	%	6.4	2.3

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

TARC Share Price Performance

Over the last one year, TARC share price has moved up from Rs 91.9 to Rs 258.0, registering a gain of Rs 166.1 or around 180.6%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,250.7 (up 1.5%). Over the last one year it has moved up from 4,889.1 to 8,250.7, a gain of 3,362 points (up 68.8%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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