ASTRAL 2023-24 Annual Report Analysis

Mon, 29 Jul

ASTRAL 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.

ASTRAL Income Statement Analysis

• Operating income during the year rose 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.3% in FY24 as against 15.6% in FY23.
• Depreciation charges increased by 10.9% and finance costs decreased by 27.3% YoY, respectively.
• Other income grew by 57.7% YoY.
• Net profit for the year grew by 18.7% YoY.
• Net profit margins during the year grew from 8.9% in FY23 to 9.7% in FY24.

ASTRAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	51,585	56,414	9.4%
Other income	Rs m	267	421	57.7%
Total Revenues	Rs m	51,852	56,835	9.6%
Gross profit	Rs m	8,066	9,182	13.8%
Depreciation	Rs m	1,781	1,976	10.9%
Interest	Rs m	400	291	-27.3%
Profit before tax	Rs m	6,152	7,336	19.2%
Tax	Rs m	1,557	1,880	20.7%
Profit after tax	Rs m	4,595	5,456	18.7%
Gross profit margin	%	15.6	16.3
Effective tax rate	%	25.3	25.6
Net profit margin	%	8.9	9.7

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ASTRAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 12 billion in FY23, thereby witnessing an decrease of -6.2%.
• Long-term debt stood at Rs 435 million as compared to Rs 316 million during FY23, a growth of 37.7%.
• Current assets fell 3% and stood at Rs 20 billion, while fixed assets rose 19% and stood at Rs 25 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 45 billion as against Rs 44 billion during FY23, thereby witnessing a growth of 3%.

ASTRAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	27,092	31,865	17.6
Current Liabilities	Rs m	11,954	11,212	-6.2
Long-term Debt	Rs m	316	435	37.7
Total Liabilities	Rs m	43,621	44,958	3.1
Current assets	Rs m	20,539	19,856	-3.3
Fixed Assets	Rs m	21,129	25,102	18.8
Total Assets	Rs m	43,621	44,958	3.1

ASTRAL Cash Flow Statement Analysis

• ASTRAL's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 47.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 12.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 799 million from the Rs -1 billion net cash flows seen during FY23.

ASTRAL 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	5,569	8,234	47.9%
Cash Flow from Investing Activities	Rs m	-4,797	-5,410	-
Cash Flow from Financing Activities	Rs m	-1,906	-2,025	-
Net Cash Flow	Rs m	-1,118	799	-

Current Valuations for ASTRAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.3, an improvement from the EPS of Rs 17.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,225.9, stands at 109.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.8 times, while the price to sales ratio stands at 10.6 times.
• The company's price to cash flow (P/CF) ratio stood at 62.7 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	192.0	210.0
TTM Earnings per share	Rs	17.1	20.3
Diluted earnings per share	Rs	17.1	20.3
Price to Cash Flow	x	56.3	62.7
TTM P/E ratio	x	77.9	109.6
Price / Book Value ratio	x	15.8	14.6
Market Cap	Rs m	426,902	466,135
Dividends per share (Unadj.)	Rs	3.5	3.8

Ratio Analysis for ASTRAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.7x 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 26.2x during FY24, from 16.4x 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 17.1% during FY24, from 17.0% 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 declined and down at 23.6% during FY24, from 23.9% 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 12.8% during FY24, from 11.5% 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	1.7	1.8
Debtors’ Days	Days	25	24
Interest coverage	x	16.4	26.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.5	12.8
Return on equity	%	17.0	17.1
Return on capital employed	%	23.9	23.6

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

ASTRAL Share Price Performance

Over the last one year, ASTRAL share price has moved up from Rs 1,906.9 to Rs 2,225.9, registering a gain of Rs 319.0 or around 16.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,519.1 (up 1.5%). Over the last one year it has moved up from 43,473.8 to 74,519.1, a gain of 31,045 points (up 71.4%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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