AXTEL INDUSTRIES 2023-24 Annual Report Analysis

Wed, 17 Jul

AXTEL INDUSTRIES 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.

AXTEL INDUSTRIES Income Statement Analysis

• Operating income during the year rose 24.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 93.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.7% in FY24 as against 12.6% in FY23.
• Depreciation charges increased by 14.3% and finance costs increased by 48.0% YoY, respectively.
• Other income declined by 13.1% YoY.
• Net profit for the year grew by 85.7% YoY.
• Net profit margins during the year grew from 9.6% in FY23 to 14.4% in FY24.

AXTEL INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,801	2,233	24.0%
Other income	Rs m	37	32	-13.1%
Total Revenues	Rs m	1,838	2,265	23.2%
Gross profit	Rs m	228	440	93.3%
Depreciation	Rs m	24	28	14.3%
Interest	Rs m	11	16	48.0%
Profit before tax	Rs m	230	429	86.7%
Tax	Rs m	57	107	89.7%
Profit after tax	Rs m	173	321	85.7%
Gross profit margin	%	12.6	19.7
Effective tax rate	%	24.6	25.0
Net profit margin	%	9.6	14.4

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AXTEL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 923 million as compared to Rs 857 million in FY23, thereby witnessing an increase of 7.7%.
• Current assets rose 9% and stood at Rs 2 billion, while fixed assets rose 36% and stood at Rs 296 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 12%.

AXTEL INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	962	1,130	17.5
Current Liabilities	Rs m	857	923	7.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,842	2,063	12.0
Current assets	Rs m	1,624	1,767	8.8
Fixed Assets	Rs m	218	296	36.0
Total Assets	Rs m	1,842	2,063	12.0

AXTEL INDUSTRIES Cash Flow Statement Analysis

• AXTEL INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 387 million, an improvement of 28.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -95 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -162 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 131 million from the Rs 54 million net cash flows seen during FY23.

AXTEL INDUSTRIES 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	301	387	28.3%
Cash Flow from Investing Activities	Rs m	-200	-95	-
Cash Flow from Financing Activities	Rs m	-48	-162	-
Net Cash Flow	Rs m	54	131	142.4%

Current Valuations for AXTEL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 19.9, an improvement from the EPS of Rs 10.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 598.8, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 25.2 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	111.5	138.3
TTM Earnings per share	Rs	10.7	19.9
Diluted earnings per share	Rs	10.7	19.9
Price to Cash Flow	x	19.7	25.2
TTM P/E ratio	x	22.4	30.1
Price / Book Value ratio	x	4.3	7.8
Market Cap	Rs m	4,099	8,791
Dividends per share (Unadj.)	Rs	3.0	6.0

Ratio Analysis for AXTEL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x 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 27.5x during FY24, from 22.0x 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 28.4% during FY24, from 18.0% 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 39.4% during FY24, from 25.0% 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 16.4% during FY24, from 10.0% 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	1.9
Debtors’ Days	Days	1,247	813
Interest coverage	x	22.0	27.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.0	16.4
Return on equity	%	18.0	28.4
Return on capital employed	%	25.0	39.4

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

AXTEL INDUSTRIES Share Price Performance

Over the last one year, AXTEL INDUSTRIES share price has moved up from Rs 290.4 to Rs 598.8, registering a gain of Rs 308.4 or around 106.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,460.1 (down 0.5%). Over the last one year it has moved up from 41,426.7 to 74,460.1, a gain of 33,033 points (up 79.7%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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