AGARWAL INDUSTRIAL 2023-24 Annual Report Analysis

Thu, 22 Aug

AGARWAL INDUSTRIAL 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.

AGARWAL INDUSTRIAL Income Statement Analysis

• Operating income during the year rose 5.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.1% in FY24 as against 6.7% in FY23.
• Depreciation charges increased by 32.7% and finance costs increased by 70.3% YoY, respectively.
• Other income declined by 43.5% YoY.
• Net profit for the year grew by 18.4% YoY.
• Net profit margins during the year grew from 4.6% in FY23 to 5.1% in FY24.

AGARWAL INDUSTRIAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,150	21,253	5.5%
Other income	Rs m	91	51	-43.5%
Total Revenues	Rs m	20,241	21,304	5.3%
Gross profit	Rs m	1,356	1,730	27.6%
Depreciation	Rs m	227	301	32.7%
Interest	Rs m	123	209	70.3%
Profit before tax	Rs m	1,098	1,272	15.9%
Tax	Rs m	175	180	2.6%
Profit after tax	Rs m	923	1,092	18.4%
Gross profit margin	%	6.7	8.1
Effective tax rate	%	15.9	14.1
Net profit margin	%	4.6	5.1

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AGARWAL INDUSTRIAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 65.4%.
• Long-term debt stood at Rs 2 billion as compared to Rs 687 million during FY23, a growth of 145.9%.
• Current assets rose 33% and stood at Rs 5 billion, while fixed assets rose 68% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 49%.

AGARWAL INDUSTRIAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,037	5,110	26.6
Current Liabilities	Rs m	2,584	4,274	65.4
Long-term Debt	Rs m	687	1,690	145.9
Total Liabilities	Rs m	7,496	11,200	49.4
Current assets	Rs m	3,966	5,269	32.8
Fixed Assets	Rs m	3,530	5,931	68.0
Total Assets	Rs m	7,496	11,200	49.4

AGARWAL INDUSTRIAL Cash Flow Statement Analysis

• AGARWAL INDUSTRIAL'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 -3 billion, an improvement of 74.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 1,252% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 134 million from the Rs -171 million net cash flows seen during FY23.

AGARWAL INDUSTRIAL 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	1,567	1,123	-28.3%
Cash Flow from Investing Activities	Rs m	-1,583	-2,764	-
Cash Flow from Financing Activities	Rs m	-154	1,775	-
Net Cash Flow	Rs m	-171	134	-

Current Valuations for AGARWAL INDUSTRIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 73.0, an improvement from the EPS of Rs 61.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,283.0, stands at 15.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	1,346.9	1,420.7
TTM Earnings per share	Rs	61.7	73.0
Diluted earnings per share	Rs	61.7	73.0
Price to Cash Flow	x	7.4	9.2
TTM P/E ratio	x	9.2	15.9
Price / Book Value ratio	x	2.1	2.5
Market Cap	Rs m	8,608	12,858
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for AGARWAL INDUSTRIAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.5x 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 7.1x during FY24, from 10.0x 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 declined and down at 21.4% during FY24, from 22.9% 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 21.8% during FY24, from 25.8% 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 declined and down at 11.6% during FY24, from 13.9% 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	1.5	1.2
Debtors’ Days	Days	351	457
Interest coverage	x	10.0	7.1
Debt to equity ratio	x	0.2	0.3
Return on assets	%	13.9	11.6
Return on equity	%	22.9	21.4
Return on capital employed	%	25.8	21.8

To see how AGARWAL INDUSTRIAL has performed over the last 5 years, please visit here.

AGARWAL INDUSTRIAL Share Price Performance

Over the last one year, AGARWAL INDUSTRIAL share price has moved up from Rs 915.9 to Rs 1,283.0, registering a gain of Rs 367.2 or around 40.1%.

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for AGARWAL INDUSTRIAL and quarterly results for AGARWAL INDUSTRIAL)