BEEKAY STEEL IND. 2023-24 Annual Report Analysis

Tue, 12 Nov

BEEKAY STEEL IND. 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.

BEEKAY STEEL IND. Income Statement Analysis

• Operating income during the year fell 11.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.7% in FY24 as against 14.7% in FY23.
• Depreciation charges decreased by 1.9% and finance costs increased by 15.3% YoY, respectively.
• Other income grew by 249.6% YoY.
• Net profit for the year grew by 22.6% YoY.
• Net profit margins during the year grew from 9.3% in FY23 to 12.9% in FY24.

BEEKAY STEEL IND. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,284	10,005	-11.3%
Other income	Rs m	139	485	249.6%
Total Revenues	Rs m	11,423	10,491	-8.2%
Gross profit	Rs m	1,664	1,368	-17.8%
Depreciation	Rs m	274	269	-1.9%
Interest	Rs m	103	119	15.3%
Profit before tax	Rs m	1,426	1,466	2.8%
Tax	Rs m	372	173	-53.5%
Profit after tax	Rs m	1,054	1,292	22.6%
Gross profit margin	%	14.7	13.7
Effective tax rate	%	26.1	11.8
Net profit margin	%	9.3	12.9

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BEEKAY STEEL IND. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 26.5%.
• Long-term debt down at Rs 998 million as compared to Rs 1 billion during FY23, a fall of 19.8%.
• Current assets fell 4% and stood at Rs 5 billion, while fixed assets rose 29% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 12%.

BEEKAY STEEL IND. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,102	9,395	16.0
Current Liabilities	Rs m	1,648	2,084	26.5
Long-term Debt	Rs m	1,245	998	-19.8
Total Liabilities	Rs m	11,254	12,615	12.1
Current assets	Rs m	5,677	5,442	-4.1
Fixed Assets	Rs m	5,577	7,173	28.6
Total Assets	Rs m	11,254	12,615	12.1

BEEKAY STEEL IND. Cash Flow Statement Analysis

• BEEKAY STEEL IND.'s cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -904 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -383 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 million from the Rs -26 million net cash flows seen during FY23.

BEEKAY STEEL IND. 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	4,079	1,292	-68.3%
Cash Flow from Investing Activities	Rs m	-3,733	-904	-
Cash Flow from Financing Activities	Rs m	-373	-383	-
Net Cash Flow	Rs m	-26	5	-

Current Valuations for BEEKAY STEEL IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 67.8, an improvement from the EPS of Rs 55.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 647.2, stands at 10.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.1 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	591.7	524.6
TTM Earnings per share	Rs	55.3	67.8
Diluted earnings per share	Rs	55.3	67.8
Price to Cash Flow	x	5.8	7.1
TTM P/E ratio	x	7.4	10.3
Price / Book Value ratio	x	1.0	1.2
Market Cap	Rs m	8,201	11,157
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for BEEKAY STEEL IND.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY24, from 3.4x 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 deteriorated and stood at 13.3x during FY24, from 14.8x 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 improved and stood at 13.8% during FY24, from 13.0% 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 15.2% during FY24, from 16.4% 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 11.2% during FY24, from 10.3% 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	3.4	2.6
Debtors’ Days	Days	568	562
Interest coverage	x	14.8	13.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	10.3	11.2
Return on equity	%	13.0	13.8
Return on capital employed	%	16.4	15.2

To see how BEEKAY STEEL IND. has performed over the last 5 years, please visit here.

BEEKAY STEEL IND. Share Price Performance

Over the last one year, BEEKAY STEEL IND. share price has moved down from Rs 679.7 to Rs 647.2, registering a loss of Rs 32.5 or around 4.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,610.5 (down 0.2%). Over the last one year it has moved up from 23,253.3 to 30,610.5, a gain of 7,357 points (up 31.6%).

Overall, the S&P BSE SENSEX is up 22.5% over the year.

(To know more, check out historical annual results for BEEKAY STEEL IND. and quarterly results for BEEKAY STEEL IND.)