ASHAPURA MINECHEM 2023-24 Annual Report Analysis

Wed, 11 Sep

ASHAPURA MINECHEM 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.

ASHAPURA MINECHEM Income Statement Analysis

• Operating income during the year rose 44.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 107.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY24 as against 10.6% in FY23.
• Depreciation charges increased by 8.4% and finance costs increased by 12.0% YoY, respectively.
• Other income declined by 28.2% YoY.
• Net profit for the year grew by 156.7% YoY.
• Net profit margins during the year grew from 6.0% in FY23 to 10.6% in FY24.

ASHAPURA MINECHEM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,308	26,538	44.9%
Other income	Rs m	861	618	-28.2%
Total Revenues	Rs m	19,170	27,156	41.7%
Gross profit	Rs m	1,938	4,015	107.2%
Depreciation	Rs m	726	786	8.4%
Interest	Rs m	679	760	12.0%
Profit before tax	Rs m	1,395	3,087	121.3%
Tax	Rs m	297	270	-9.3%
Profit after tax	Rs m	1,097	2,817	156.7%
Gross profit margin	%	10.6	15.1
Effective tax rate	%	21.3	8.7
Net profit margin	%	6.0	10.6

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ASHAPURA MINECHEM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 15 billion as compared to Rs 15 billion in FY23, thereby witnessing an increase of 5.5%.
• Long-term debt stood at Rs 7 billion as compared to Rs 6 billion during FY23, a growth of 13.9%.
• Current assets rose 2% and stood at Rs 18 billion, while fixed assets rose 20% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 30 billion during FY23, thereby witnessing a growth of 9%.

ASHAPURA MINECHEM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,550	9,204	40.5
Current Liabilities	Rs m	14,616	15,426	5.5
Long-term Debt	Rs m	6,034	6,874	13.9
Total Liabilities	Rs m	30,180	32,828	8.8
Current assets	Rs m	18,096	18,415	1.8
Fixed Assets	Rs m	11,990	14,414	20.2
Total Assets	Rs m	30,180	32,828	8.8

ASHAPURA MINECHEM Cash Flow Statement Analysis

• ASHAPURA MINECHEM's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 57.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 111.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 140% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 646 million from the Rs 436 million net cash flows seen during FY23.

ASHAPURA MINECHEM 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	937	1,481	57.9%
Cash Flow from Investing Activities	Rs m	-1,297	-2,742	-
Cash Flow from Financing Activities	Rs m	796	1,907	139.6%
Net Cash Flow	Rs m	436	646	48.1%

Current Valuations for ASHAPURA MINECHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 30.8, an improvement from the EPS of Rs 12.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 306.7, stands at 15.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 7.6 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	200.1	290.1
TTM Earnings per share	Rs	12.0	30.8
Diluted earnings per share	Rs	11.5	29.5
Price to Cash Flow	x	5.9	7.6
TTM P/E ratio	x	11.6	15.7
Price / Book Value ratio	x	1.7	3.0
Market Cap	Rs m	11,331	27,258
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASHAPURA MINECHEM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.2x 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 5.1x during FY24, from 3.1x 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 30.6% during FY24, from 16.8% 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 23.9% during FY24, from 16.5% 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 10.9% during FY24, from 5.9% 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	1.2	1.2
Debtors’ Days	Days	977	370
Interest coverage	x	3.1	5.1
Debt to equity ratio	x	0.9	0.7
Return on assets	%	5.9	10.9
Return on equity	%	16.8	30.6
Return on capital employed	%	16.5	23.9

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

ASHAPURA MINECHEM Share Price Performance

Over the last one year, ASHAPURA MINECHEM share price has moved up from Rs 285.3 to Rs 306.7, registering a gain of Rs 21.5 or around 7.5%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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