FORCE MOTORS 2023-24 Annual Report Analysis

Thu, 15 Aug

FORCE MOTORS 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.

FORCE MOTORS Income Statement Analysis

• Operating income during the year rose 39.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 72.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.8% in FY24 as against 10.3% in FY23.
• Depreciation charges increased by 10.8% and finance costs decreased by 9.2% YoY, respectively.
• Other income declined by 37.0% YoY.
• Net profit for the year grew by 190.3% YoY.
• Net profit margins during the year grew from 2.7% in FY23 to 5.6% in FY24.

FORCE MOTORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	50,290	69,921	39.0%
Other income	Rs m	620	391	-37.0%
Total Revenues	Rs m	50,910	70,312	38.1%
Gross profit	Rs m	5,195	8,949	72.2%
Depreciation	Rs m	2,407	2,668	10.8%
Interest	Rs m	684	621	-9.2%
Profit before tax	Rs m	2,724	6,051	122.1%
Tax	Rs m	1,387	2,169	56.4%
Profit after tax	Rs m	1,337	3,882	190.3%
Gross profit margin	%	10.3	12.8
Effective tax rate	%	50.9	35.8
Net profit margin	%	2.7	5.6

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FORCE MOTORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 16 billion as compared to Rs 15 billion in FY23, thereby witnessing an increase of 8.4%.
• Long-term debt down at Rs 4 billion as compared to Rs 6 billion during FY23, a fall of 35.8%.
• Current assets rose 31% and stood at Rs 20 billion, while fixed assets fell 3% and stood at Rs 24 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 44 billion as against Rs 40 billion during FY23, thereby witnessing a growth of 10%.

FORCE MOTORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	18,750	22,551	20.3
Current Liabilities	Rs m	15,094	16,360	8.4
Long-term Debt	Rs m	5,950	3,818	-35.8
Total Liabilities	Rs m	40,076	44,147	10.2
Current assets	Rs m	15,652	20,460	30.7
Fixed Assets	Rs m	24,424	23,687	-3.0
Total Assets	Rs m	40,076	44,147	10.2

FORCE MOTORS Cash Flow Statement Analysis

• FORCE MOTORS's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion, an improvement of 90.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -5 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 684 million net cash flows seen during FY23.

FORCE MOTORS 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	5,317	10,145	90.8%
Cash Flow from Investing Activities	Rs m	-2,565	-1,975	-
Cash Flow from Financing Activities	Rs m	-2,069	-5,092	-
Net Cash Flow	Rs m	684	3,078	349.8%

Current Valuations for FORCE MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 294.5, an improvement from the EPS of Rs 101.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,124.5, stands at 23.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 8.6 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	3,815.6	5,305.1
TTM Earnings per share	Rs	101.5	294.5
Diluted earnings per share	Rs	101.5	294.6
Price to Cash Flow	x	4.1	8.6
TTM P/E ratio	x	10.1	23.8
Price / Book Value ratio	x	0.9	2.5
Market Cap	Rs m	16,746	56,328
Dividends per share (Unadj.)	Rs	10.0	20.0

Ratio Analysis for FORCE MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.0x 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 10.7x during FY24, from 5.0x 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 17.2% during FY24, from 7.1% 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 25.3% during FY24, from 13.8% 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 10.2% during FY24, from 5.0% 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	1.0	1.3
Debtors’ Days	Days	143	54
Interest coverage	x	5.0	10.7
Debt to equity ratio	x	0.3	0.2
Return on assets	%	5.0	10.2
Return on equity	%	7.1	17.2
Return on capital employed	%	13.8	25.3

To see how FORCE MOTORS has performed over the last 5 years, please visit here.

FORCE MOTORS Share Price Performance

Over the last one year, FORCE MOTORS share price has moved up from Rs 3,327.3 to Rs 8,124.5, registering a gain of Rs 4,797.2 or around 144.2%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 56,745.7 (up 0.0%). Over the last one year it has moved up from 34,972.6 to 56,745.7, a gain of 21,773 points (up 62.3%).

Overall, the S&P BSE SENSEX is up 21.0% over the year.

(To know more, check out historical annual results for FORCE MOTORS and quarterly results for FORCE MOTORS)