ATUL 2023-24 Annual Report Analysis

Thu, 4 Jul

ATUL 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.

ATUL Income Statement Analysis

• Operating income during the year fell 19.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 27.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.9% in FY24 as against 14.3% in FY23.
• Depreciation charges decreased by 6.9% and finance costs decreased by 71.5% YoY, respectively.
• Other income grew by 17.5% YoY.
• Net profit for the year declined by 24.1% YoY.
• Net profit margins during the year declined from 9.3% in FY23 to 8.8% in FY24.

ATUL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	54,275	43,577	-19.7%
Other income	Rs m	1,149	1,349	17.5%
Total Revenues	Rs m	55,424	44,926	-18.9%
Gross profit	Rs m	7,787	5,611	-27.9%
Depreciation	Rs m	1,978	1,842	-6.9%
Interest	Rs m	79	23	-71.5%
Profit before tax	Rs m	6,878	5,095	-25.9%
Tax	Rs m	1,812	1,249	-31.1%
Profit after tax	Rs m	5,066	3,846	-24.1%
Gross profit margin	%	14.3	12.9
Effective tax rate	%	26.3	24.5
Net profit margin	%	9.3	8.8

Don't Miss: Key Information for Long-term Investors

ATUL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 9 billion as compared to Rs 10 billion in FY23, thereby witnessing an decrease of -16.1%.
• Current assets fell 7% and stood at Rs 21 billion, while fixed assets rose 9% and stood at Rs 40 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 61 billion as against Rs 59 billion during FY23, thereby witnessing a growth of 3%.

ATUL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	46,714	50,894	8.9
Current Liabilities	Rs m	10,282	8,623	-16.1
Long-term Debt	Rs m	287	0	-100.0
Total Liabilities	Rs m	59,395	61,163	3.0
Current assets	Rs m	22,789	21,212	-6.9
Fixed Assets	Rs m	36,606	39,951	9.1
Total Assets	Rs m	59,395	61,163	3.0

ATUL Cash Flow Statement Analysis

• ATUL's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 2.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 48% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 82 million from the Rs -196 million net cash flows seen during FY23.

ATUL 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	7,067	6,237	-11.7%
Cash Flow from Investing Activities	Rs m	-4,694	-4,828	-
Cash Flow from Financing Activities	Rs m	-2,575	-1,328	-
Net Cash Flow	Rs m	-196	82	-

Current Valuations for ATUL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 130.6, an decline from the EPS of Rs 171.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,594.0, stands at 61.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 34.4 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	1,839.2	1,480.2
TTM Earnings per share	Rs	171.7	130.6
Diluted earnings per share	Rs	172.1	130.6
Price to Cash Flow	x	29.1	34.4
TTM P/E ratio	x	40.8	61.7
Price / Book Value ratio	x	5.4	3.8
Market Cap	Rs m	251,534	195,892
Dividends per share (Unadj.)	Rs	32.5	20.0

Ratio Analysis for ATUL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.2x 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 227.4x during FY24, from 88.1x 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 declined and down at 7.6% during FY24, from 10.8% 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 10.1% during FY24, from 14.8% 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 6.3% during FY24, from 8.7% 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	2.2	2.5
Debtors’ Days	Days	6	7
Interest coverage	x	88.1	227.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.7	6.3
Return on equity	%	10.8	7.6
Return on capital employed	%	14.8	10.1

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

ATUL Share Price Performance

Over the last one year, ATUL share price has moved down from Rs 6,926.8 to Rs 6,594.0, registering a loss of Rs 332.8 or around 4.8%.

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

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