BALMER LAWRIE 2023-24 Annual Report Analysis

Mon, 9 Sep

BALMER LAWRIE 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.

BALMER LAWRIE Income Statement Analysis

• Operating income during the year rose 0.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 43.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.5% in FY24 as against 8.1% in FY23.
• Depreciation charges increased by 4.2% and finance costs increased by 22.9% YoY, respectively.
• Other income grew by 70.7% YoY.
• Net profit for the year grew by 86.5% YoY.
• Net profit margins during the year grew from 4.6% in FY23 to 8.5% in FY24.

BALMER LAWRIE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,215	23,392	0.8%
Other income	Rs m	502	857	70.7%
Total Revenues	Rs m	23,717	24,249	2.2%
Gross profit	Rs m	1,888	2,700	43.0%
Depreciation	Rs m	568	592	4.2%
Interest	Rs m	179	221	22.9%
Profit before tax	Rs m	1,643	2,745	67.0%
Tax	Rs m	574	752	30.9%
Profit after tax	Rs m	1,069	1,993	86.5%
Gross profit margin	%	8.1	11.5
Effective tax rate	%	35.0	27.4
Net profit margin	%	4.6	8.5

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BALMER LAWRIE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 10.8%.
• Long-term debt down at Rs 663 million as compared to Rs 824 million during FY23, a fall of 19.5%.
• Current assets rose 11% and stood at Rs 15 billion, while fixed assets rose 5% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 29 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 8%.

BALMER LAWRIE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,807	18,208	8.3
Current Liabilities	Rs m	6,421	7,116	10.8
Long-term Debt	Rs m	824	663	-19.5
Total Liabilities	Rs m	26,617	28,731	7.9
Current assets	Rs m	13,351	14,830	11.1
Fixed Assets	Rs m	13,266	13,902	4.8
Total Assets	Rs m	26,617	28,731	7.9

BALMER LAWRIE Cash Flow Statement Analysis

• BALMER LAWRIE's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 32.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 118.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -93 million from the Rs 124 million net cash flows seen during FY23.

BALMER LAWRIE 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	2,078	2,742	32.0%
Cash Flow from Investing Activities	Rs m	-483	-1,052	-
Cash Flow from Financing Activities	Rs m	-1,471	-1,783	-
Net Cash Flow	Rs m	124	-93	-

Current Valuations for BALMER LAWRIE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.7, an improvement from the EPS of Rs 6.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 276.2, stands at 23.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 13.3 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	135.8	136.8
TTM Earnings per share	Rs	6.2	11.7
Diluted earnings per share	Rs	6.2	11.7
Price to Cash Flow	x	11.6	13.3
TTM P/E ratio	x	17.7	23.4
Price / Book Value ratio	x	1.2	1.9
Market Cap	Rs m	20,277	34,355
Dividends per share (Unadj.)	Rs	7.5	8.5

Ratio Analysis for BALMER LAWRIE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 2.1x 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 improved and stood at 13.4x during FY24, from 10.2x 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 10.9% during FY24, from 6.4% 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 15.7% during FY24, from 10.3% 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 7.7% during FY24, from 4.7% 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	2.1	2.1
Debtors’ Days	Days	567	666
Interest coverage	x	10.2	13.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.7	7.7
Return on equity	%	6.4	10.9
Return on capital employed	%	10.3	15.7

To see how BALMER LAWRIE has performed over the last 5 years, please visit here.

BALMER LAWRIE Share Price Performance

Over the last one year, BALMER LAWRIE share price has moved up from Rs 168.7 to Rs 276.2, registering a gain of Rs 107.6 or around 63.8%.

Overall, the S&P BSE SENSEX is up 23.7% over the year.

(To know more, check out historical annual results for BALMER LAWRIE and quarterly results for BALMER LAWRIE)