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BIRLA CORPORATION 2023-24 Annual Report Analysis

Tue, 16 Jul

BIRLA CORPORATION 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.

BIRLA CORPORATION Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 85.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.9% in FY24 as against 9.0% in FY23.
• Depreciation charges increased by 13.4% and finance costs increased by 9.7% YoY, respectively.
• Other income declined by 24.3% YoY.
• Net profit for the year grew by 938.4% YoY.
• Net profit margins during the year grew from 0.5% in FY23 to 4.4% in FY24.

BIRLA CORPORATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	86,823	96,627	11.3%
Other income	Rs m	1,131	856	-24.3%
Total Revenues	Rs m	87,953	97,483	10.8%
Gross profit	Rs m	7,787	14,444	85.5%
Depreciation	Rs m	5,099	5,783	13.4%
Interest	Rs m	3,387	3,717	9.7%
Profit before tax	Rs m	431	5,799	1,245.2%
Tax	Rs m	26	1,594	6,006.1%
Profit after tax	Rs m	405	4,206	938.4%
Gross profit margin	%	9.0	14.9
Effective tax rate	%	6.1	27.5
Net profit margin	%	0.5	4.4

Revealed: Our Big Prediction

BIRLA CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 25 billion as compared to Rs 23 billion in FY23, thereby witnessing an increase of 7.9%.
• Long-term debt down at Rs 32 billion as compared to Rs 38 billion during FY23, a fall of 17.0%.
• Current assets fell 1% and stood at Rs 30 billion, while fixed assets rose 4% and stood at Rs 115 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 144 billion as against Rs 141 billion during FY23, thereby witnessing a growth of 3%.

BIRLA CORPORATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	59,808	66,738	11.6
Current Liabilities	Rs m	23,340	25,184	7.9
Long-term Debt	Rs m	38,383	31,853	-17.0
Total Liabilities	Rs m	140,720	144,362	2.6
Current assets	Rs m	30,192	29,809	-1.3
Fixed Assets	Rs m	110,521	114,546	3.6
Total Assets	Rs m	140,720	144,362	2.6

BIRLA CORPORATION Cash Flow Statement Analysis

• BIRLA CORPORATION's cash flow from operating activities (CFO) during FY24 stood at Rs 16 billion, an improvement of 101.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion, an improvement of 91.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -10 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -497 million from the Rs 1 billion net cash flows seen during FY23.

BIRLA CORPORATION 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	8,055	16,195	101.1%
Cash Flow from Investing Activities	Rs m	-3,650	-7,001	-
Cash Flow from Financing Activities	Rs m	-3,183	-9,691	-
Net Cash Flow	Rs m	1,221	-497	-

Current Valuations for BIRLA CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.6, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,560.5, stands at 28.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.4 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	1,127.4	1,254.7
TTM Earnings per share	Rs	5.3	54.6
Diluted earnings per share	Rs	5.3	54.6
Price to Cash Flow	x	12.4	10.4
TTM P/E ratio	x	168.7	28.6
Price / Book Value ratio	x	1.3	1.5
Market Cap	Rs m	79,115	103,430
Dividends per share (Unadj.)	Rs	2.5	10.0

Ratio Analysis for BIRLA CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.3x 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 2.6x during FY24, from 1.1x 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 6.3% during FY24, from 0.7% 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 improved and stood at 9.7% during FY24, from 3.9% 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 5.5% during FY24, from 2.7% 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	1.3	1.2
Debtors’ Days	Days	1	2
Interest coverage	x	1.1	2.6
Debt to equity ratio	x	0.6	0.5
Return on assets	%	2.7	5.5
Return on equity	%	0.7	6.3
Return on capital employed	%	3.9	9.7

To see how BIRLA CORPORATION has performed over the last 5 years, please visit here.

BIRLA CORPORATION Share Price Performance

Over the last one year, BIRLA CORPORATION share price has moved up from Rs 1,214.0 to Rs 1,560.5, registering a gain of Rs 346.5 or around 28.5%.

Overall, the S&P BSE SENSEX is up 23.4% over the year.

(To know more, check out historical annual results for BIRLA CORPORATION and quarterly results for BIRLA CORPORATION)