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BAJAJ HIND. SUGAR 2023-24 Annual Report Analysis

Mon, 3 Jun

BAJAJ HIND. SUGAR 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.

BAJAJ HIND. SUGAR Income Statement Analysis

• Operating income during the year fell 3.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.1% in FY24 as against 4.1% in FY23.
• Depreciation charges increased by 4.3% and finance costs decreased by 23.0% YoY, respectively.
• Other income grew by 86.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 1.4% in FY24.

BAJAJ HIND. SUGAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	63,380	61,043	-3.7%
Other income	Rs m	225	420	86.4%
Total Revenues	Rs m	63,606	61,463	-3.4%
Gross profit	Rs m	2,626	2,472	-5.9%
Depreciation	Rs m	2,132	2,225	4.3%
Interest	Rs m	2,101	1,618	-23.0%
Profit before tax	Rs m	-1,382	-951	NA
Tax	Rs m	-34	-81	NA
Profit after tax	Rs m	-1,347	-869	NA
Gross profit margin	%	4.1	4.1
Effective tax rate	%	2.5	8.6
Net profit margin	%	-2.1	-1.4

For Investors: Our Big Prediction

BAJAJ HIND. SUGAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 65 billion as compared to Rs 62 billion in FY23, thereby witnessing an increase of 3.7%.
• Long-term debt down at Rs 36 billion as compared to Rs 39 billion during FY23, a fall of 7.7%.
• Current assets rose 4% and stood at Rs 36 billion, while fixed assets fell 1% and stood at Rs 123 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 159 billion as against Rs 159 billion during FY23, thereby witnessing a fall of 0%.

BAJAJ HIND. SUGAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	44,244	44,751	1.1
Current Liabilities	Rs m	62,365	64,647	3.7
Long-term Debt	Rs m	38,512	35,532	-7.7
Total Liabilities	Rs m	159,460	159,107	-0.2
Current assets	Rs m	34,891	36,256	3.9
Fixed Assets	Rs m	124,569	122,851	-1.4
Total Assets	Rs m	159,460	159,107	-0.2

BAJAJ HIND. SUGAR Cash Flow Statement Analysis

• BAJAJ HIND. SUGAR's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 288 million from the Rs -286 million net cash flows seen during FY23.

BAJAJ HIND. SUGAR 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	7,923	6,438	-18.7%
Cash Flow from Investing Activities	Rs m	123	-4	-
Cash Flow from Financing Activities	Rs m	-8,332	-6,146	-
Net Cash Flow	Rs m	-286	288	-

Current Valuations for BAJAJ HIND. SUGAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.7, an improvement from the EPS of Rs -1.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 32.5, stands at -47.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 24.6 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	50.9	49.1
TTM Earnings per share	Rs	-1.1	-0.7
Diluted earnings per share	Rs	-1.1	-0.7
Price to Cash Flow	x	21.0	24.6
TTM P/E ratio	x	-12.2	-47.7
Price / Book Value ratio	x	0.4	0.7
Market Cap	Rs m	19,258	33,315
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BAJAJ HIND. SUGAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY24, from 0.6x 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 0.4x during FY24, from 0.3x 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 -1.9% during FY24, from -3.0% 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 0.8% during FY24, from 0.9% 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 declined and down at 0.5% during FY24, from 0.5% 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	0.6	0.6
Debtors’ Days	Days	1	1
Interest coverage	x	0.3	0.4
Debt to equity ratio	x	0.9	0.8
Return on assets	%	0.5	0.5
Return on equity	%	-3.0	-1.9
Return on capital employed	%	0.9	0.8

To see how BAJAJ HIND. SUGAR has performed over the last 5 years, please visit here.

BAJAJ HIND. SUGAR Share Price Performance

Over the last one year, BAJAJ HIND. SUGAR share price has moved up from Rs 14.9 to Rs 32.5, registering a gain of Rs 17.6 or around 118.4%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for BAJAJ HIND. SUGAR and quarterly results for BAJAJ HIND. SUGAR)