ARIES AGRO 2023-24 Annual Report Analysis

Thu, 28 Nov

ARIES AGRO 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.

ARIES AGRO Income Statement Analysis

• Operating income during the year rose 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.7% in FY24 as against 10.1% in FY23.
• Depreciation charges decreased by 1.3% and finance costs decreased by 4.8% YoY, respectively.
• Other income declined by 66.4% YoY.
• Net profit for the year grew by 15.5% YoY.
• Net profit margins during the year grew from 3.4% in FY23 to 3.6% in FY24.

ARIES AGRO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,722	5,165	9.4%
Other income	Rs m	88	30	-66.4%
Total Revenues	Rs m	4,811	5,194	8.0%
Gross profit	Rs m	478	554	16.0%
Depreciation	Rs m	78	77	-1.3%
Interest	Rs m	234	223	-4.8%
Profit before tax	Rs m	254	284	11.9%
Tax	Rs m	94	100	5.8%
Profit after tax	Rs m	159	184	15.5%
Gross profit margin	%	10.1	10.7
Effective tax rate	%	37.2	35.2
Net profit margin	%	3.4	3.6

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ARIES AGRO Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -10.6%.
• Long-term debt stood at Rs 262 million as compared to Rs 217 million during FY23, a growth of 20.4%.
• Current assets fell 7% and stood at Rs 4 billion, while fixed assets rose 17% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a fall of 0%.

ARIES AGRO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,429	2,603	7.2
Current Liabilities	Rs m	2,377	2,126	-10.6
Long-term Debt	Rs m	217	262	20.4
Total Liabilities	Rs m	5,198	5,175	-0.5
Current assets	Rs m	3,825	3,566	-6.8
Fixed Assets	Rs m	1,374	1,609	17.2
Total Assets	Rs m	5,198	5,175	-0.5

ARIES AGRO Cash Flow Statement Analysis

• ARIES AGRO's cash flow from operating activities (CFO) during FY24 stood at Rs 765 million, an improvement of 40.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -262 million, an improvement of 60.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -497 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 million from the Rs 11 million net cash flows seen during FY23.

ARIES AGRO 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	545	765	40.4%
Cash Flow from Investing Activities	Rs m	-164	-262	-
Cash Flow from Financing Activities	Rs m	-370	-497	-
Net Cash Flow	Rs m	11	6	-49.7%

Current Valuations for ARIES AGRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.2, an improvement from the EPS of Rs 12.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 357.8, stands at 17.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	363.3	397.3
TTM Earnings per share	Rs	12.3	14.2
Diluted earnings per share	Rs	12.2	14.1
Price to Cash Flow	x	8.1	12.2
TTM P/E ratio	x	12.1	17.0
Price / Book Value ratio	x	0.9	1.2
Market Cap	Rs m	2,264	3,198
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ARIES AGRO

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.6x 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 2.3x during FY24, from 2.1x 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 7.1% during FY24, from 6.6% 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 declined and down at 17.7% during FY24, from 18.4% 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 7.9% during FY24, from 7.6% 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	1.6	1.7
Debtors’ Days	Days	914	800
Interest coverage	x	2.1	2.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.6	7.9
Return on equity	%	6.6	7.1
Return on capital employed	%	18.4	17.7

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

ARIES AGRO Share Price Performance

Over the last one year, ARIES AGRO share price has moved up from Rs 197.4 to Rs 357.8, registering a gain of Rs 160.4 or around 81.3%.

Overall, the S&P BSE SENSEX is up 20.3% over the year.

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