BALU FORGE 2023-24 Annual Report Analysis

Thu, 12 Sep

BALU FORGE 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.

BALU FORGE Income Statement Analysis

• Operating income during the year rose 71.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 139.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.3% in FY24 as against 15.2% in FY23.
• Depreciation charges increased by 54.9% and finance costs increased by 29.5% YoY, respectively.
• Other income declined by 17.6% YoY.
• Net profit for the year grew by 140.7% YoY.
• Net profit margins during the year grew from 11.9% in FY23 to 16.7% in FY24.

BALU FORGE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,266	5,599	71.4%
Other income	Rs m	126	104	-17.6%
Total Revenues	Rs m	3,393	5,703	68.1%
Gross profit	Rs m	498	1,191	139.3%
Depreciation	Rs m	13	21	54.9%
Interest	Rs m	105	136	29.5%
Profit before tax	Rs m	506	1,138	125.1%
Tax	Rs m	117	202	73.1%
Profit after tax	Rs m	389	937	140.7%
Gross profit margin	%	15.2	21.3
Effective tax rate	%	23.0	17.7
Net profit margin	%	11.9	16.7

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BALU FORGE 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 -16.7%.
• Long-term debt stood at Rs 248 million as compared to Rs 117 million during FY23, a growth of 112.4%.
• Current assets rose 65% and stood at Rs 5 billion, while fixed assets rose 209% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 92%.

BALU FORGE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,976	5,300	168.2
Current Liabilities	Rs m	1,606	1,337	-16.7
Long-term Debt	Rs m	117	248	112.4
Total Liabilities	Rs m	3,686	7,087	92.2
Current assets	Rs m	2,989	4,930	65.0
Fixed Assets	Rs m	698	2,157	209.1
Total Assets	Rs m	3,686	7,087	92.2

BALU FORGE Cash Flow Statement Analysis

• BALU FORGE's cash flow from operating activities (CFO) during FY24 stood at Rs -180 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 595.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 4,477% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 828 million from the Rs -8 million net cash flows seen during FY23.

BALU FORGE 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	262	-180	-
Cash Flow from Investing Activities	Rs m	-212	-1,479	-
Cash Flow from Financing Activities	Rs m	-57	2,486	-
Net Cash Flow	Rs m	-8	828	-

Current Valuations for BALU FORGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.1, an improvement from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 789.4, stands at 77.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.3 times, while the price to sales ratio stands at 14.5 times.
• The company's price to cash flow (P/CF) ratio stood at 20.8 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	39.2	54.6
TTM Earnings per share	Rs	4.7	9.1
Diluted earnings per share	Rs	3.6	8.6
Price to Cash Flow	x	23.9	20.8
TTM P/E ratio	x	24.7	77.7
Price / Book Value ratio	x	3.8	3.8
Market Cap	Rs m	7,438	19,931
Dividends per share (Unadj.)	Rs	0.0	0.2

Ratio Analysis for BALU FORGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x 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 9.3x during FY24, from 5.8x 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 17.7% during FY24, from 19.7% 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 23.0% during FY24, from 29.2% 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 15.1% during FY24, from 13.4% 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	3.7
Debtors’ Days	Days	2,352	1,425
Interest coverage	x	5.8	9.3
Debt to equity ratio	x	0.1	0.0
Return on assets	%	13.4	15.1
Return on equity	%	19.7	17.7
Return on capital employed	%	29.2	23.0

To see how BALU FORGE has performed over the last 5 years, please visit here.

BALU FORGE Share Price Performance

Over the last one year, BALU FORGE share price has moved up from Rs 189.0 to Rs 789.4, registering a gain of Rs 600.4 or around 317.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,746.7 (up 0.4%). Over the last one year it has moved up from 46,983.6 to 71,746.7, a gain of 24,763 points (up 52.7%).

Overall, the S&P BSE SENSEX is up 21.6% over the year.

(To know more, check out historical annual results for BALU FORGE and quarterly results for BALU FORGE)