AVALON TECHNOLOGIES 2023-24 Annual Report Analysis

Tue, 3 Sep

AVALON TECHNOLOGIES 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.

AVALON TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 8.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.2% in FY24 as against 11.9% in FY23.
• Depreciation charges increased by 16.5% and finance costs decreased by 52.9% YoY, respectively.
• Other income grew by 2.5% YoY.
• Net profit for the year declined by 46.7% YoY.
• Net profit margins during the year declined from 5.6% in FY23 to 3.2% in FY24.

AVALON TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,447	8,672	-8.2%
Other income	Rs m	145	149	2.5%
Total Revenues	Rs m	9,592	8,820	-8.0%
Gross profit	Rs m	1,126	625	-44.5%
Depreciation	Rs m	197	229	16.5%
Interest	Rs m	348	164	-52.9%
Profit before tax	Rs m	727	381	-47.6%
Tax	Rs m	202	101	-50.1%
Profit after tax	Rs m	525	280	-46.7%
Gross profit margin	%	11.9	7.2
Effective tax rate	%	27.8	26.5
Net profit margin	%	5.6	3.2

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AVALON TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -48.5%.
• Long-term debt down at Rs 533 million as compared to Rs 656 million during FY23, a fall of 18.7%.
• Current assets fell 30% and stood at Rs 7 billion, while fixed assets rose 25% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 12 billion during FY23, thereby witnessing a fall of 22%.

AVALON TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,167	5,469	152.4
Current Liabilities	Rs m	5,443	2,804	-48.5
Long-term Debt	Rs m	656	533	-18.7
Total Liabilities	Rs m	11,755	9,128	-22.3
Current assets	Rs m	10,120	7,088	-30.0
Fixed Assets	Rs m	1,635	2,040	24.8
Total Assets	Rs m	11,755	9,128	-22.3

AVALON TECHNOLOGIES Cash Flow Statement Analysis

• AVALON TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 173 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 475.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 billion from the Rs 4 billion net cash flows seen during FY23.

AVALON TECHNOLOGIES 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	-132	173	-
Cash Flow from Investing Activities	Rs m	-254	-1,461	-
Cash Flow from Financing Activities	Rs m	4,525	-2,508	-
Net Cash Flow	Rs m	4,141	-3,796	-

Current Valuations for AVALON TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an decline from the EPS of Rs 9.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 529.8, stands at 187.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 69.7 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	163.0	132.0
TTM Earnings per share	Rs	9.1	4.3
Diluted earnings per share	Rs	8.0	4.3
Price to Cash Flow	x	0.0	69.7
TTM P/E ratio	x	0.0	187.4
Price / Book Value ratio	x	0.0	6.5
Market Cap	Rs m	0	35,460
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AVALON TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 1.9x 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 3.3x during FY24, from 3.1x 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 5.1% during FY24, from 24.2% 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 9.1% during FY24, from 38.1% 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 4.9% during FY24, from 7.4% 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	1.9	2.5
Debtors’ Days	Days	80	79
Interest coverage	x	3.1	3.3
Debt to equity ratio	x	0.3	0.1
Return on assets	%	7.4	4.9
Return on equity	%	24.2	5.1
Return on capital employed	%	38.1	9.1

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

AVALON TECHNOLOGIES Share Price Performance

Over the last one year, AVALON TECHNOLOGIES share price has moved up from Rs 502.7 to Rs 529.8, registering a gain of Rs 27.1 or around 5.4%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 64,256.8 (up 1.4%). Over the last one year it has moved up from 44,678.3 to 64,256.8, a gain of 19,579 points (up 43.8%).

Overall, the S&P BSE SENSEX is up 26.8% over the year.

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