ASIAN STAR 2023-24 Annual Report Analysis

Tue, 24 Sep

ASIAN STAR 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.

ASIAN STAR Income Statement Analysis

• Operating income during the year fell 21.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 3.3% in FY24 as against 3.1% in FY23.
• Depreciation charges decreased by 4.6% and finance costs increased by 20.0% YoY, respectively.
• Other income grew by 170.8% YoY.
• Net profit for the year declined by 6.5% YoY.
• Net profit margins during the year grew from 1.9% in FY23 to 2.2% in FY24.

ASIAN STAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	44,783	35,233	-21.3%
Other income	Rs m	120	325	170.8%
Total Revenues	Rs m	44,902	35,558	-20.8%
Gross profit	Rs m	1,385	1,163	-16.0%
Depreciation	Rs m	124	119	-4.6%
Interest	Rs m	332	399	20.0%
Profit before tax	Rs m	1,048	971	-7.4%
Tax	Rs m	218	195	-10.5%
Profit after tax	Rs m	830	776	-6.5%
Gross profit margin	%	3.1	3.3
Effective tax rate	%	20.8	20.1
Net profit margin	%	1.9	2.2

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ASIAN STAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 13.0%.
• Long-term debt stood at Rs 534 million as compared to Rs 531 million during FY23, a growth of 0.6%.
• Current assets rose 9% and stood at Rs 25 billion, while fixed assets fell 2% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 25 billion during FY23, thereby witnessing a growth of 8%.

ASIAN STAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,354	15,127	5.4
Current Liabilities	Rs m	9,698	10,954	13.0
Long-term Debt	Rs m	531	534	0.6
Total Liabilities	Rs m	25,073	27,126	8.2
Current assets	Rs m	22,566	24,670	9.3
Fixed Assets	Rs m	2,507	2,457	-2.0
Total Assets	Rs m	25,073	27,126	8.2

ASIAN STAR Cash Flow Statement Analysis

• ASIAN STAR's cash flow from operating activities (CFO) during FY24 stood at Rs -656 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -40 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 665 million, an improvement of 168% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -31 million from the Rs 132 million net cash flows seen during FY23.

ASIAN STAR 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	942	-656	-
Cash Flow from Investing Activities	Rs m	163	-40	-
Cash Flow from Financing Activities	Rs m	-973	665	-
Net Cash Flow	Rs m	132	-31	-

Current Valuations for ASIAN STAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.5, an decline from the EPS of Rs 51.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 869.2, stands at 19.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	2,797.2	2,200.7
TTM Earnings per share	Rs	51.8	48.5
Diluted earnings per share	Rs	51.8	48.5
Price to Cash Flow	x	11.6	15.0
TTM P/E ratio	x	13.3	19.5
Price / Book Value ratio	x	0.9	0.9
Market Cap	Rs m	12,798	13,399
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for ASIAN STAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x 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 3.4x during FY24, from 4.2x 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 declined and down at 5.1% during FY24, from 5.8% 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 declined and down at 8.7% during FY24, from 9.3% 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 declined and down at 4.3% during FY24, from 4.6% 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	2.3
Debtors’ Days	Days	855	1,126
Interest coverage	x	4.2	3.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.6	4.3
Return on equity	%	5.8	5.1
Return on capital employed	%	9.3	8.7

To see how ASIAN STAR has performed over the last 5 years, please visit here.

ASIAN STAR Share Price Performance

Over the last one year, ASIAN STAR share price has moved up from Rs 808.6 to Rs 869.2, registering a gain of Rs 60.6 or around 7.5%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for ASIAN STAR and quarterly results for ASIAN STAR)