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ASK AUTOMOTIVE LTD. 2023-24 Annual Report Analysis

Wed, 31 Jul

ASK AUTOMOTIVE LTD. 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.

ASK AUTOMOTIVE LTD. Income Statement Analysis

• Operating income during the year rose 17.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 37.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.4% in FY24 as against 8.8% in FY23.
• Depreciation charges increased by 13.6% and finance costs increased by 155.2% YoY, respectively.
• Other income grew by 4.3% YoY.
• Net profit for the year grew by 41.3% YoY.
• Net profit margins during the year grew from 4.8% in FY23 to 5.8% in FY24.

ASK AUTOMOTIVE LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	25,552	29,945	17.2%
Other income	Rs m	158	165	4.3%
Total Revenues	Rs m	25,710	30,111	17.1%
Gross profit	Rs m	2,258	3,110	37.7%
Depreciation	Rs m	607	690	13.6%
Interest	Rs m	112	286	155.2%
Profit before tax	Rs m	1,698	2,300	35.5%
Tax	Rs m	468	562	20.1%
Profit after tax	Rs m	1,230	1,738	41.3%
Gross profit margin	%	8.8	10.4
Effective tax rate	%	27.6	24.4
Net profit margin	%	4.8	5.8

For Investors: Our Big Prediction

ASK AUTOMOTIVE LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 16.2%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY23, a growth of 28.2%.
• Current assets rose 15% and stood at Rs 5 billion, while fixed assets rose 26% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 16 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 22%.

ASK AUTOMOTIVE LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,438	8,167	26.9
Current Liabilities	Rs m	4,207	4,888	16.2
Long-term Debt	Rs m	2,088	2,678	28.2
Total Liabilities	Rs m	13,296	16,279	22.4
Current assets	Rs m	4,489	5,177	15.3
Fixed Assets	Rs m	8,807	11,101	26.0
Total Assets	Rs m	13,296	16,279	22.4

ASK AUTOMOTIVE LTD. Cash Flow Statement Analysis

• ASK AUTOMOTIVE LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 118.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 72.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -155 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 100 million from the Rs 9 million net cash flows seen during FY23.

ASK AUTOMOTIVE LTD. 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	1,386	3,033	118.9%
Cash Flow from Investing Activities	Rs m	-1,609	-2,777	-
Cash Flow from Financing Activities	Rs m	232	-155	-
Net Cash Flow	Rs m	9	100	981.9%

Current Valuations for ASK AUTOMOTIVE LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.8, an improvement from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 407.1, stands at 44.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.8 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 23.4 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	129.6	151.9
TTM Earnings per share	Rs	6.2	8.8
Diluted earnings per share	Rs	6.2	8.8
Price to Cash Flow	x	0.0	23.4
TTM P/E ratio	x	0.0	44.6
Price / Book Value ratio	x	0.0	6.9
Market Cap	Rs m	0	56,738
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for ASK AUTOMOTIVE LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.1x 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 9.1x during FY24, from 16.2x 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 21.3% during FY24, from 19.1% 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 23.8% during FY24, from 21.2% 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 12.4% during FY24, from 10.1% 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	1.1	1.1
Debtors’ Days	Days	301	261
Interest coverage	x	16.2	9.1
Debt to equity ratio	x	0.3	0.3
Return on assets	%	10.1	12.4
Return on equity	%	19.1	21.3
Return on capital employed	%	21.2	23.8

To see how ASK AUTOMOTIVE LTD. has performed over the last 5 years, please visit here.

ASK AUTOMOTIVE LTD. Share Price Performance

Over the last one year, ASK AUTOMOTIVE LTD. share price has moved up from Rs 0.0 to Rs 407.1, registering a gain of Rs 407.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for ASK AUTOMOTIVE LTD. and quarterly results for ASK AUTOMOTIVE LTD.)