ARROW GREENTECH LIMITED 2023-24 Annual Report Analysis

Wed, 28 Aug

ARROW GREENTECH LIMITED 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.

ARROW GREENTECH LIMITED Income Statement Analysis

• Operating income during the year rose 21.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 118.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 39.2% in FY24 as against 21.8% in FY23.
• Depreciation charges decreased by 29.0% and finance costs decreased by 62.6% YoY, respectively.
• Other income grew by 150.2% YoY.
• Net profit for the year grew by 220.6% YoY.
• Net profit margins during the year grew from 11.3% in FY23 to 29.8% in FY24.

ARROW GREENTECH LIMITED Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,088	1,320	21.3%
Other income	Rs m	24	59	150.2%
Total Revenues	Rs m	1,111	1,379	24.1%
Gross profit	Rs m	237	517	118.4%
Depreciation	Rs m	67	47	-29.0%
Interest	Rs m	13	5	-62.6%
Profit before tax	Rs m	180	524	190.3%
Tax	Rs m	58	131	126.2%
Profit after tax	Rs m	123	393	220.6%
Gross profit margin	%	21.8	39.2
Effective tax rate	%	32.0	24.9
Net profit margin	%	11.3	29.8

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

ARROW GREENTECH LIMITED Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 86 million as compared to Rs 168 million in FY23, thereby witnessing an decrease of -48.9%.
• Long-term debt down at Rs 1 million as compared to Rs 9 million during FY23, a fall of 85.7%.
• Current assets fell 15% and stood at Rs 649 million, while fixed assets rose 84% and stood at Rs 958 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 25%.

ARROW GREENTECH LIMITED Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	982	1,259	28.2
Current Liabilities	Rs m	168	86	-48.9
Long-term Debt	Rs m	9	1	-85.7
Total Liabilities	Rs m	1,288	1,607	24.7
Current assets	Rs m	767	649	-15.4
Fixed Assets	Rs m	521	958	84.0
Total Assets	Rs m	1,288	1,607	24.7

ARROW GREENTECH LIMITED Cash Flow Statement Analysis

• ARROW GREENTECH LIMITED's cash flow from operating activities (CFO) during FY24 stood at Rs 196 million, an improvement of 558.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -164 million, an improvement of 16.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -39 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -7 million from the Rs -28 million net cash flows seen during FY23.

ARROW GREENTECH LIMITED 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	30	196	558.7%
Cash Flow from Investing Activities	Rs m	-141	-164	-
Cash Flow from Financing Activities	Rs m	84	-39	-
Net Cash Flow	Rs m	-28	-7	-

Current Valuations for ARROW GREENTECH LIMITED

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 26.0, an improvement from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 854.1, stands at 32.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 9.8 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	72.1	87.5
TTM Earnings per share	Rs	8.1	26.0
Diluted earnings per share	Rs	8.1	26.0
Price to Cash Flow	x	20.4	13.1
TTM P/E ratio	x	31.5	32.1
Price / Book Value ratio	x	2.6	4.6
Market Cap	Rs m	2,578	5,749
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for ARROW GREENTECH LIMITED

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.6x during FY24, from 4.6x 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 107.8x during FY24, from 14.8x 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 improved and stood at 31.2% during FY24, from 12.5% 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 improved and stood at 41.9% during FY24, from 19.5% 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 24.8% during FY24, from 10.5% 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	4.6	7.6
Debtors’ Days	Days	882	673
Interest coverage	x	14.8	107.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	24.8
Return on equity	%	12.5	31.2
Return on capital employed	%	19.5	41.9

To see how ARROW GREENTECH LIMITED has performed over the last 5 years, please visit here.

ARROW GREENTECH LIMITED Share Price Performance

Over the last one year, ARROW GREENTECH LIMITED share price has moved up from Rs 310.1 to Rs 854.1, registering a gain of Rs 544.0 or around 175.4%.

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

(To know more, check out historical annual results for ARROW GREENTECH LIMITED and quarterly results for ARROW GREENTECH LIMITED)