BANNARI AMMAN 2023-24 Annual Report Analysis

Wed, 11 Sep

BANNARI AMMAN 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.

BANNARI AMMAN Income Statement Analysis

• Operating income during the year fell 12.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.8% in FY24 as against 12.0% in FY23.
• Depreciation charges decreased by 22.2% and finance costs decreased by 35.8% YoY, respectively.
• Other income declined by 83.0% YoY.
• Net profit for the year grew by 6.2% YoY.
• Net profit margins during the year grew from 5.7% in FY23 to 6.9% in FY24.

BANNARI AMMAN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	25,256	22,203	-12.1%
Other income	Rs m	394	67	-83.0%
Total Revenues	Rs m	25,649	22,270	-13.2%
Gross profit	Rs m	3,042	3,064	0.7%
Depreciation	Rs m	740	576	-22.2%
Interest	Rs m	493	316	-35.8%
Profit before tax	Rs m	2,202	2,239	1.7%
Tax	Rs m	768	716	-6.9%
Profit after tax	Rs m	1,434	1,523	6.2%
Gross profit margin	%	12.0	13.8
Effective tax rate	%	34.9	32.0
Net profit margin	%	5.7	6.9

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BANNARI AMMAN Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 6 billion in FY23, thereby witnessing an decrease of -0.5%.
• Long-term debt down at Rs 673 million as compared to Rs 2 billion during FY23, a fall of 57.1%.
• Current assets rose 2% and stood at Rs 12 billion, while fixed assets rose 4% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 25 billion as against Rs 24 billion during FY23, thereby witnessing a growth of 3%.

BANNARI AMMAN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,519	16,884	8.8
Current Liabilities	Rs m	6,147	6,116	-0.5
Long-term Debt	Rs m	1,571	673	-57.1
Total Liabilities	Rs m	24,001	24,750	3.1
Current assets	Rs m	12,086	12,328	2.0
Fixed Assets	Rs m	11,915	12,422	4.3
Total Assets	Rs m	24,001	24,750	3.1

BANNARI AMMAN Cash Flow Statement Analysis

• BANNARI AMMAN's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 129.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 68% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 million from the Rs 28 million net cash flows seen during FY23.

BANNARI AMMAN 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	5,023	2,742	-45.4%
Cash Flow from Investing Activities	Rs m	-567	-1,299	-
Cash Flow from Financing Activities	Rs m	-4,428	-1,436	-
Net Cash Flow	Rs m	28	7	-75.7%

Current Valuations for BANNARI AMMAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 121.5, an improvement from the EPS of Rs 114.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,361.8, stands at 29.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.6 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	2,014.0	1,770.6
TTM Earnings per share	Rs	114.3	121.5
Diluted earnings per share	Rs	114.3	121.5
Price to Cash Flow	x	15.7	15.6
TTM P/E ratio	x	23.8	29.0
Price / Book Value ratio	x	2.1	1.9
Market Cap	Rs m	32,456	32,760
Dividends per share (Unadj.)	Rs	12.5	12.5

Ratio Analysis for BANNARI AMMAN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 2.0x 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 8.1x during FY24, from 5.5x 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 9.0% during FY24, from 9.2% 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 14.6% during FY24, from 15.8% 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 7.4% during FY24, from 8.0% 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	2.0	2.0
Debtors’ Days	Days	204	221
Interest coverage	x	5.5	8.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.0	7.4
Return on equity	%	9.2	9.0
Return on capital employed	%	15.8	14.6

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

BANNARI AMMAN Share Price Performance

Over the last one year, BANNARI AMMAN share price has moved up from Rs 2,852.9 to Rs 3,361.8, registering a gain of Rs 508.9 or around 17.8%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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