ASHOKA BUILDCON 2023-24 Annual Report Analysis

Wed, 11 Sep

ASHOKA BUILDCON 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.

ASHOKA BUILDCON Income Statement Analysis

• Operating income during the year rose 21.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY24 as against 23.4% in FY23.
• Depreciation charges increased by 7.5% and finance costs increased by 18.7% YoY, respectively.
• Other income grew by 53.6% YoY.
• Net profit for the year grew by 77.3% YoY.
• Net profit margins during the year grew from 3.6% in FY23 to 5.3% in FY24.

ASHOKA BUILDCON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	81,005	97,985	21.0%
Other income	Rs m	1,346	2,068	53.6%
Total Revenues	Rs m	82,351	100,053	21.5%
Gross profit	Rs m	18,985	23,402	23.3%
Depreciation	Rs m	3,411	3,666	7.5%
Interest	Rs m	11,038	13,104	18.7%
Profit before tax	Rs m	5,882	8,700	47.9%
Tax	Rs m	2,942	3,487	18.5%
Profit after tax	Rs m	2,939	5,212	77.3%
Gross profit margin	%	23.4	23.9
Effective tax rate	%	50.0	40.1
Net profit margin	%	3.6	5.3

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ASHOKA BUILDCON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 62 billion as compared to Rs 53 billion in FY23, thereby witnessing an increase of 16.4%.
• Long-term debt down at Rs 38 billion as compared to Rs 39 billion during FY23, a fall of 1.8%.
• Current assets rose 16% and stood at Rs 57 billion, while fixed assets rose 2% and stood at Rs 80 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 190 billion as against Rs 170 billion during FY23, thereby witnessing a growth of 12%.

ASHOKA BUILDCON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,756	22,202	32.5
Current Liabilities	Rs m	53,466	62,261	16.4
Long-term Debt	Rs m	38,599	37,898	-1.8
Total Liabilities	Rs m	170,441	190,052	11.5
Current assets	Rs m	48,943	56,974	16.4
Fixed Assets	Rs m	78,559	79,743	1.5
Total Assets	Rs m	170,441	190,052	11.5

ASHOKA BUILDCON Cash Flow Statement Analysis

• ASHOKA BUILDCON's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 52.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 billion from the Rs -1 billion net cash flows seen during FY23.

ASHOKA BUILDCON 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	4,922	7,488	52.1%
Cash Flow from Investing Activities	Rs m	-3,107	2,336	-
Cash Flow from Financing Activities	Rs m	-3,112	-4,074	-
Net Cash Flow	Rs m	-1,296	5,750	-

Current Valuations for ASHOKA BUILDCON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.6, an improvement from the EPS of Rs 10.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 251.1, stands at 10.7 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.3 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	288.6	349.0
TTM Earnings per share	Rs	10.5	18.6
Diluted earnings per share	Rs	10.5	18.6
Price to Cash Flow	x	3.3	4.3
TTM P/E ratio	x	7.1	10.7
Price / Book Value ratio	x	1.4	1.7
Market Cap	Rs m	23,118	37,891
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ASHOKA BUILDCON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 0.9x 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 1.7x during FY24, from 1.5x 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 23.5% during FY24, from 17.5% 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 36.3% during FY24, from 30.6% 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 9.6% during FY24, from 8.2% 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	0.9	0.9
Debtors’ Days	Days	414	394
Interest coverage	x	1.5	1.7
Debt to equity ratio	x	2.3	1.7
Return on assets	%	8.2	9.6
Return on equity	%	17.5	23.5
Return on capital employed	%	30.6	36.3

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

ASHOKA BUILDCON Share Price Performance

Over the last one year, ASHOKA BUILDCON share price has moved up from Rs 112.4 to Rs 251.1, registering a gain of Rs 138.8 or around 123.5%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,018.9 (down 1.2%). Over the last one year it has moved up from 4,774.4 to 8,018.9, a gain of 3,244 points (up 68.0%).

Overall, the S&P BSE SENSEX is up 21.4% over the year.

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