ASSO.ALCOHOL 2023-24 Annual Report Analysis

Thu, 11 Jul

ASSO.ALCOHOL 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.

ASSO.ALCOHOL Income Statement Analysis

• Operating income during the year rose 8.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY24 as against 8.9% in FY23.
• Depreciation charges increased by 0.1% and finance costs increased by 158.8% YoY, respectively.
• Other income grew by 8.1% YoY.
• Net profit for the year grew by 21.8% YoY.
• Net profit margins during the year grew from 5.9% in FY23 to 6.7% in FY24.

ASSO.ALCOHOL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,988	7,551	8.1%
Other income	Rs m	89	96	8.1%
Total Revenues	Rs m	7,077	7,647	8.1%
Gross profit	Rs m	624	767	23.0%
Depreciation	Rs m	144	144	0.1%
Interest	Rs m	14	37	158.8%
Profit before tax	Rs m	555	683	23.1%
Tax	Rs m	139	177	26.9%
Profit after tax	Rs m	416	506	21.8%
Gross profit margin	%	8.9	10.2
Effective tax rate	%	25.1	25.9
Net profit margin	%	5.9	6.7

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ASSO.ALCOHOL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 31.3%.
• Long-term debt down at Rs 500 million as compared to Rs 667 million during FY23, a fall of 25.0%.
• Current assets fell 4% and stood at Rs 2 billion, while fixed assets rose 31% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 15%.

ASSO.ALCOHOL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,634	4,120	13.4
Current Liabilities	Rs m	1,129	1,482	31.3
Long-term Debt	Rs m	667	500	-25.0
Total Liabilities	Rs m	5,526	6,330	14.5
Current assets	Rs m	2,580	2,480	-3.9
Fixed Assets	Rs m	2,946	3,850	30.7
Total Assets	Rs m	5,526	6,330	14.5

ASSO.ALCOHOL Cash Flow Statement Analysis

• ASSO.ALCOHOL's cash flow from operating activities (CFO) during FY24 stood at Rs 284 million, an improvement of 320.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -325 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 127 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 86 million from the Rs -12 million net cash flows seen during FY23.

ASSO.ALCOHOL 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	68	284	320.2%
Cash Flow from Investing Activities	Rs m	-942	-325	-
Cash Flow from Financing Activities	Rs m	863	127	-85.3%
Net Cash Flow	Rs m	-12	86	-

Current Valuations for ASSO.ALCOHOL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 28.0, an improvement from the EPS of Rs 23.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 695.6, stands at 24.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	386.5	417.6
TTM Earnings per share	Rs	23.0	28.0
Diluted earnings per share	Rs	23.0	28.0
Price to Cash Flow	x	10.4	12.7
TTM P/E ratio	x	14.0	24.8
Price / Book Value ratio	x	2.1	2.0
Market Cap	Rs m	7,595	8,276
Dividends per share (Unadj.)	Rs	1.0	2.0

Ratio Analysis for ASSO.ALCOHOL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x 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 19.6x during FY24, from 40.1x 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 12.3% during FY24, from 11.4% 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 15.6% during FY24, from 13.2% 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 improved and stood at 8.6% during FY24, from 7.8% 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	1.7
Debtors’ Days	Days	97	169
Interest coverage	x	40.1	19.6
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.8	8.6
Return on equity	%	11.4	12.3
Return on capital employed	%	13.2	15.6

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

ASSO.ALCOHOL Share Price Performance

Over the last one year, ASSO.ALCOHOL share price has moved up from Rs 412.1 to Rs 695.6, registering a gain of Rs 283.5 or around 68.8%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for ASSO.ALCOHOL and quarterly results for ASSO.ALCOHOL)