INDUS TOWERS 2023-24 Annual Report Analysis

Fri, 9 Aug

INDUS TOWERS 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.

INDUS TOWERS 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 57.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.6% in FY24 as against 32.3% in FY23.
• Depreciation charges increased by 13.8% and finance costs increased by 11.6% YoY, respectively.
• Other income grew by 171.8% YoY.
• Net profit for the year grew by 195.9% YoY.
• Net profit margins during the year grew from 7.2% in FY23 to 21.1% in FY24.

INDUS TOWERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	283,818	286,006	0.8%
Other income	Rs m	5,778	15,704	171.8%
Total Revenues	Rs m	289,596	301,710	4.2%
Gross profit	Rs m	91,758	144,757	57.8%
Depreciation	Rs m	53,239	60,599	13.8%
Interest	Rs m	16,704	18,638	11.6%
Profit before tax	Rs m	27,593	81,224	194.4%
Tax	Rs m	7,193	20,862	190.0%
Profit after tax	Rs m	20,400	60,362	195.9%
Gross profit margin	%	32.3	50.6
Effective tax rate	%	26.1	25.7
Net profit margin	%	7.2	21.1

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INDUS TOWERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 102 billion as compared to Rs 82 billion in FY23, thereby witnessing an increase of 24.4%.
• Long-term debt down at Rs 15 billion as compared to Rs 24 billion during FY23, a fall of 38.2%.
• Current assets rose 20% and stood at Rs 105 billion, while fixed assets rose 21% and stood at Rs 443 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 548 billion as against Rs 454 billion during FY23, thereby witnessing a growth of 21%.

INDUS TOWERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	210,977	270,239	28.1
Current Liabilities	Rs m	81,628	101,565	24.4
Long-term Debt	Rs m	24,340	15,044	-38.2
Total Liabilities	Rs m	453,506	547,920	20.8
Current assets	Rs m	87,076	104,900	20.5
Fixed Assets	Rs m	366,430	443,020	20.9
Total Assets	Rs m	453,506	547,920	20.8

INDUS TOWERS Cash Flow Statement Analysis

• INDUS TOWERS's cash flow from operating activities (CFO) during FY24 stood at Rs 116 billion, an improvement of 46.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -75 billion, an improvement of 336.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -40 billion, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 407 million from the Rs -10 billion net cash flows seen during FY23.

INDUS TOWERS 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	79,048	115,821	46.5%
Cash Flow from Investing Activities	Rs m	-17,300	-75,458	-
Cash Flow from Financing Activities	Rs m	-71,326	-39,956	-
Net Cash Flow	Rs m	-9,578	407	-

Current Valuations for INDUS TOWERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.4, an improvement from the EPS of Rs 7.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 415.4, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	105.3	106.1
TTM Earnings per share	Rs	7.6	22.4
Diluted earnings per share	Rs	7.6	22.4
Price to Cash Flow	x	5.2	4.8
TTM P/E ratio	x	18.9	16.9
Price / Book Value ratio	x	2.3	2.1
Market Cap	Rs m	493,106	577,390
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INDUS TOWERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 5.4x during FY24, from 2.7x 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 22.3% during FY24, from 9.7% 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 35.0% during FY24, from 18.8% 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 improved and stood at 14.4% during FY24, from 8.2% 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	1.1	1.0
Debtors’ Days	Days	63	82
Interest coverage	x	2.7	5.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.2	14.4
Return on equity	%	9.7	22.3
Return on capital employed	%	18.8	35.0

To see how INDUS TOWERS has performed over the last 5 years, please visit here.

INDUS TOWERS Share Price Performance

Over the last one year, INDUS TOWERS share price has moved up from Rs 171.4 to Rs 415.4, registering a gain of Rs 244.0 or around 142.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 18,371.5 (up 1.5%). Over the last one year it has moved up from 13,964.8 to 18,371.5, a gain of 4,407 points (up 31.6%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for INDUS TOWERS and quarterly results for INDUS TOWERS)