AZAD ENGINEERING LTD. 2023-24 Annual Report Analysis

Mon, 14 Oct

AZAD ENGINEERING LTD. 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.

AZAD ENGINEERING LTD. Income Statement Analysis

• Operating income during the year rose 35.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 34.2% in FY24 as against 28.7% in FY23.
• Depreciation charges increased by 23.8% and finance costs decreased by 9.8% YoY, respectively.
• Other income grew by 224.9% YoY.
• Net profit for the year grew by 591.4% YoY.
• Net profit margins during the year grew from 3.4% in FY23 to 17.2% in FY24.

AZAD ENGINEERING LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,517	3,408	35.4%
Other income	Rs m	98	320	224.9%
Total Revenues	Rs m	2,615	3,728	42.5%
Gross profit	Rs m	723	1,166	61.3%
Depreciation	Rs m	166	205	23.8%
Interest	Rs m	524	473	-9.8%
Profit before tax	Rs m	132	808	513.9%
Tax	Rs m	47	222	373.9%
Profit after tax	Rs m	85	586	591.4%
Gross profit margin	%	28.7	34.2
Effective tax rate	%	35.6	27.5
Net profit margin	%	3.4	17.2

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AZAD ENGINEERING LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -29.8%.
• Long-term debt down at Rs 271 million as compared to Rs 2 billion during FY23, a fall of 87.7%.
• Current assets rose 47% and stood at Rs 4 billion, while fixed assets rose 23% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 35%.

AZAD ENGINEERING LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,040	6,451	216.2
Current Liabilities	Rs m	1,609	1,128	-29.8
Long-term Debt	Rs m	2,209	271	-87.7
Total Liabilities	Rs m	6,019	8,117	34.9
Current assets	Rs m	2,963	4,363	47.3
Fixed Assets	Rs m	3,056	3,754	22.8
Total Assets	Rs m	6,019	8,117	34.9

AZAD ENGINEERING LTD. Cash Flow Statement Analysis

• AZAD ENGINEERING LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -69 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -553 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 710 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 88 million from the Rs 150 million net cash flows seen during FY23.

AZAD ENGINEERING LTD. 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	-102	-69	-
Cash Flow from Investing Activities	Rs m	-1,012	-553	-
Cash Flow from Financing Activities	Rs m	1,263	710	-43.8%
Net Cash Flow	Rs m	150	88	-41.4%

Current Valuations for AZAD ENGINEERING LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an decline from the EPS of Rs 51.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,526.0, stands at 154.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.0 times, while the price to sales ratio stands at 26.5 times.
• The company's price to cash flow (P/CF) ratio stood at 78.7 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	1,525.3	57.7
TTM Earnings per share	Rs	51.4	9.9
Diluted earnings per share	Rs	1.4	9.9
Price to Cash Flow	x	0.0	78.7
TTM P/E ratio	x	0.0	154.0
Price / Book Value ratio	x	0.0	9.7
Market Cap	Rs m	0	62,274
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for AZAD ENGINEERING LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.9x during FY24, from 1.8x 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 2.7x during FY24, from 1.3x 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 improved and stood at 9.1% during FY24, from 4.2% 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 improved and stood at 19.1% during FY24, from 15.4% 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 13.0% during FY24, from 10.1% 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	1.8	3.9
Debtors’ Days	Days	172	182
Interest coverage	x	1.3	2.7
Debt to equity ratio	x	1.1	0.0
Return on assets	%	10.1	13.0
Return on equity	%	4.2	9.1
Return on capital employed	%	15.4	19.1

To see how AZAD ENGINEERING LTD. has performed over the last 5 years, please visit here.

AZAD ENGINEERING LTD. Share Price Performance

Over the last one year, AZAD ENGINEERING LTD. share price has moved up from Rs 0.0 to Rs 1,526.0, registering a gain of Rs 1,526.0 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,061.2 (up 0.7%). Over the last one year it has moved up from 47,898.9 to 72,061.2, a gain of 24,162 points (up 50.4%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

(To know more, check out historical annual results for AZAD ENGINEERING LTD. and quarterly results for AZAD ENGINEERING LTD.)