ASHOK LEYLAND 2023-24 Annual Report Analysis

Thu, 4 Jul

ASHOK LEYLAND 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.

ASHOK LEYLAND Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 52.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY24 as against 12.4% in FY23.
• Depreciation charges increased by 3.0% and finance costs increased by 42.5% YoY, respectively.
• Other income grew by 47.0% YoY.
• Net profit for the year grew by 98.4% YoY.
• Net profit margins during the year grew from 3.3% in FY23 to 5.9% in FY24.

ASHOK LEYLAND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	416,726	457,906	9.9%
Other income	Rs m	1,071	1,575	47.0%
Total Revenues	Rs m	417,797	459,481	10.0%
Gross profit	Rs m	51,515	78,581	52.5%
Depreciation	Rs m	9,002	9,273	3.0%
Interest	Rs m	20,935	29,823	42.5%
Profit before tax	Rs m	22,649	41,061	81.3%
Tax	Rs m	9,061	14,097	55.6%
Profit after tax	Rs m	13,588	26,963	98.4%
Gross profit margin	%	12.4	17.2
Effective tax rate	%	40.0	34.3
Net profit margin	%	3.3	5.9

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ASHOK LEYLAND Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 267 billion as compared to Rs 224 billion in FY23, thereby witnessing an increase of 18.8%.
• Long-term debt stood at Rs 267 billion as compared to Rs 195 billion during FY23, a growth of 36.9%.
• Current assets rose 20% and stood at Rs 290 billion, while fixed assets rose 26% and stood at Rs 385 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 676 billion as against Rs 547 billion during FY23, thereby witnessing a growth of 24%.

ASHOK LEYLAND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	85,092	89,566	5.3
Current Liabilities	Rs m	224,441	266,631	18.8
Long-term Debt	Rs m	195,029	266,957	36.9
Total Liabilities	Rs m	546,969	675,951	23.6
Current assets	Rs m	241,715	289,871	19.9
Fixed Assets	Rs m	304,535	384,686	26.3
Total Assets	Rs m	546,969	675,951	23.6

ASHOK LEYLAND Cash Flow Statement Analysis

• ASHOK LEYLAND's cash flow from operating activities (CFO) during FY24 stood at Rs -63 billion, an improvement of 39.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 84 billion, an improvement of 16% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 33 billion from the Rs -1 billion net cash flows seen during FY23.

ASHOK LEYLAND 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	-44,993	-62,580	-
Cash Flow from Investing Activities	Rs m	-29,350	11,354	-
Cash Flow from Financing Activities	Rs m	72,806	84,316	15.8%
Net Cash Flow	Rs m	-1,224	33,087	-

Current Valuations for ASHOK LEYLAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.2, an improvement from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 229.5, stands at 25.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 13.2 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	141.9	155.9
TTM Earnings per share	Rs	4.6	9.2
Diluted earnings per share	Rs	4.6	9.2
Price to Cash Flow	x	18.1	13.2
TTM P/E ratio	x	30.3	25.1
Price / Book Value ratio	x	4.9	5.3
Market Cap	Rs m	414,581	478,475
Dividends per share (Unadj.)	Rs	2.6	5.0

Ratio Analysis for ASHOK LEYLAND

• Solvency Ratios

Current Ratio: The company's current ratio improved 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 improved and stood at 2.4x during FY24, from 2.1x 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 30.1% during FY24, from 16.0% 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 19.9% during FY24, from 15.6% 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 8.4% during FY24, from 6.3% 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	4	3
Interest coverage	x	2.1	2.4
Debt to equity ratio	x	2.3	3.0
Return on assets	%	6.3	8.4
Return on equity	%	16.0	30.1
Return on capital employed	%	15.6	19.9

To see how ASHOK LEYLAND has performed over the last 5 years, please visit here.

ASHOK LEYLAND Share Price Performance

Over the last one year, ASHOK LEYLAND share price has moved up from Rs 163.1 to Rs 229.5, registering a gain of Rs 66.4 or around 40.7%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 57,251.2 (up 0.3%). Over the last one year it has moved up from 34,572.4 to 57,251.2, a gain of 22,679 points (up 65.6%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for ASHOK LEYLAND and quarterly results for ASHOK LEYLAND)