BIRLA PRECISION 2023-24 Annual Report Analysis

Mon, 19 Aug

BIRLA PRECISION 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 PRECISION Income Statement Analysis

• Operating income during the year fell 11.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.0% in FY24 as against 6.7% in FY23.
• Depreciation charges increased by 40.5% and finance costs increased by 5.5% YoY, respectively.
• Other income declined by 80.5% YoY.
• Net profit for the year declined by 33.0% YoY.
• Net profit margins during the year declined from 5.6% in FY23 to 4.2% in FY24.

BIRLA PRECISION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,533	2,255	-11.0%
Other income	Rs m	103	20	-80.5%
Total Revenues	Rs m	2,636	2,276	-13.7%
Gross profit	Rs m	170	248	45.3%
Depreciation	Rs m	46	65	40.5%
Interest	Rs m	33	35	5.5%
Profit before tax	Rs m	194	168	-13.6%
Tax	Rs m	54	74	37.0%
Profit after tax	Rs m	141	94	-33.0%
Gross profit margin	%	6.7	11.0
Effective tax rate	%	27.6	43.8
Net profit margin	%	5.6	4.2

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BIRLA PRECISION Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 967 million in FY23, thereby witnessing an increase of 15.7%.
• Long-term debt down at Rs 31 million as compared to Rs 34 million during FY23, a fall of 9.4%.
• Current assets rose 19% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 793 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 14%.

BIRLA PRECISION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,315	1,452	10.4
Current Liabilities	Rs m	967	1,119	15.7
Long-term Debt	Rs m	34	31	-9.4
Total Liabilities	Rs m	2,347	2,676	14.0
Current assets	Rs m	1,579	1,883	19.3
Fixed Assets	Rs m	768	793	3.2
Total Assets	Rs m	2,347	2,676	14.0

BIRLA PRECISION Cash Flow Statement Analysis

• BIRLA PRECISION's cash flow from operating activities (CFO) during FY24 stood at Rs -99 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -90 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 176 million, an improvement of 255% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -13 million from the Rs 53 million net cash flows seen during FY23.

BIRLA PRECISION 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	269	-99	-
Cash Flow from Investing Activities	Rs m	-265	-90	-
Cash Flow from Financing Activities	Rs m	50	176	254.7%
Net Cash Flow	Rs m	53	-13	-

Current Valuations for BIRLA PRECISION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an decline from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 79.3, stands at 61.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 22.5 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	38.8	34.2
TTM Earnings per share	Rs	2.2	1.4
Diluted earnings per share	Rs	2.1	1.4
Price to Cash Flow	x	11.8	22.5
TTM P/E ratio	x	15.7	61.7
Price / Book Value ratio	x	1.8	2.5
Market Cap	Rs m	2,394	3,586
Dividends per share (Unadj.)	Rs	0.0	0.1

Ratio Analysis for BIRLA PRECISION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.6x 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 deteriorated and stood at 5.8x during FY24, from 6.9x 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 declined and down at 6.5% during FY24, from 10.7% 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 declined and down at 13.7% during FY24, from 16.9% 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 4.8% during FY24, from 7.4% 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	1.6	1.7
Debtors’ Days	Days	580	677
Interest coverage	x	6.9	5.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	4.8
Return on equity	%	10.7	6.5
Return on capital employed	%	16.9	13.7

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

BIRLA PRECISION Share Price Performance

Over the last one year, BIRLA PRECISION share price has moved up from Rs 45.1 to Rs 79.3, registering a gain of Rs 34.3 or around 76.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,060.8 (up 0.3%). Over the last one year it has moved up from 43,172.9 to 73,060.8, a gain of 29,888 points (up 69.2%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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