AXITA COTTON 2023-24 Annual Report Analysis

Tue, 15 Oct

AXITA COTTON 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.

AXITA COTTON Income Statement Analysis

• Operating income during the year rose 101.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.5% in FY24 as against 4.2% in FY23.
• Depreciation charges increased by 20.0% and finance costs increased by 57.4% YoY, respectively.
• Other income grew by 41.2% YoY.
• Net profit for the year grew by 19.4% YoY.
• Net profit margins during the year declined from 3.1% in FY23 to 1.8% in FY24.

AXITA COTTON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,481	11,020	101.1%
Other income	Rs m	17	24	41.2%
Total Revenues	Rs m	5,497	11,044	100.9%
Gross profit	Rs m	227	270	18.7%
Depreciation	Rs m	11	13	20.0%
Interest	Rs m	5	8	57.4%
Profit before tax	Rs m	229	273	19.4%
Tax	Rs m	58	70	19.6%
Profit after tax	Rs m	170	203	19.4%
Gross profit margin	%	4.2	2.5
Effective tax rate	%	25.5	25.5
Net profit margin	%	3.1	1.8

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AXITA COTTON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 285 million as compared to Rs 224 million in FY23, thereby witnessing an increase of 27.6%.
• Current assets rose 26% and stood at Rs 883 million, while fixed assets fell 8% and stood at Rs 98 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 981 million as against Rs 806 million during FY23, thereby witnessing a growth of 22%.

AXITA COTTON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	524	646	23.3
Current Liabilities	Rs m	224	285	27.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	806	981	21.8
Current assets	Rs m	699	883	26.4
Fixed Assets	Rs m	107	98	-8.2
Total Assets	Rs m	806	981	21.8

AXITA COTTON Cash Flow Statement Analysis

• AXITA COTTON's cash flow from operating activities (CFO) during FY24 stood at Rs -132 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 7 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 101 million, an improvement of 725% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -24 million from the Rs 46 million net cash flows seen during FY23.

AXITA COTTON 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	73	-132	-
Cash Flow from Investing Activities	Rs m	-11	7	-
Cash Flow from Financing Activities	Rs m	-16	101	-
Net Cash Flow	Rs m	46	-24	-

Current Valuations for AXITA COTTON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an decline from the EPS of Rs 0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 15.2, stands at 22.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.1 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 48.8 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	27.9	42.2
TTM Earnings per share	Rs	0.9	0.8
Diluted earnings per share	Rs	0.7	0.8
Price to Cash Flow	x	46.3	48.8
TTM P/E ratio	x	49.2	22.0
Price / Book Value ratio	x	15.3	16.3
Market Cap	Rs m	7,987	10,536
Dividends per share (Unadj.)	Rs	0.0	0.2

Ratio Analysis for AXITA COTTON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY24, from 3.1x 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 34.6x during FY24, from 45.3x 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 31.5% during FY24, from 32.5% 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 43.5% during FY24, from 44.6% 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 21.6% during FY24, from 21.8% 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	3.1	3.1
Debtors’ Days	Days	294	127
Interest coverage	x	45.3	34.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.8	21.6
Return on equity	%	32.5	31.5
Return on capital employed	%	44.6	43.5

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

AXITA COTTON Share Price Performance

Over the last one year, AXITA COTTON share price has moved down from Rs 19.9 to Rs 15.2, registering a loss of Rs 4.7 or around 23.6%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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