BENARES HOT 2023-24 Annual Report Analysis

Mon, 27 May

BENARES HOT 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.

BENARES HOT Income Statement Analysis

• Operating income during the year rose 29.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 42.4% in FY24 as against 38.7% in FY23.
• Depreciation charges decreased by 1.8% and finance costs increased by 2.2% YoY, respectively.
• Other income grew by 115.2% YoY.
• Net profit for the year grew by 54.2% YoY.
• Net profit margins during the year grew from 25.1% in FY23 to 29.9% in FY24.

BENARES HOT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	933	1,206	29.2%
Other income	Rs m	15	32	115.2%
Total Revenues	Rs m	948	1,238	30.5%
Gross profit	Rs m	362	511	41.4%
Depreciation	Rs m	60	59	-1.8%
Interest	Rs m	4	4	2.2%
Profit before tax	Rs m	313	481	53.7%
Tax	Rs m	79	120	52.4%
Profit after tax	Rs m	234	360	54.2%
Gross profit margin	%	38.7	42.4
Effective tax rate	%	25.3	25.0
Net profit margin	%	25.1	29.9

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BENARES HOT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 137 million as compared to Rs 109 million in FY23, thereby witnessing an increase of 25.6%.
• Current assets rose 58% and stood at Rs 615 million, while fixed assets rose 16% and stood at Rs 946 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 30%.

BENARES HOT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	998	1,330	33.3
Current Liabilities	Rs m	109	137	25.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,203	1,561	29.7
Current assets	Rs m	388	615	58.4
Fixed Assets	Rs m	815	946	16.0
Total Assets	Rs m	1,203	1,561	29.7

BENARES HOT Cash Flow Statement Analysis

• BENARES HOT's cash flow from operating activities (CFO) during FY24 stood at Rs 405 million, an improvement of 45.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -253 million, an improvement of 47.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -29 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 123 million from the Rs 91 million net cash flows seen during FY23.

BENARES HOT 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	278	405	45.8%
Cash Flow from Investing Activities	Rs m	-171	-253	-
Cash Flow from Financing Activities	Rs m	-16	-29	-
Net Cash Flow	Rs m	91	123	35.9%

Current Valuations for BENARES HOT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 277.3, an improvement from the EPS of Rs 179.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8,940.0, stands at 32.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 9.6 times.
• The company's price to cash flow (P/CF) ratio stood at 20.5 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	717.9	927.4
TTM Earnings per share	Rs	179.8	277.3
Diluted earnings per share	Rs	179.8	277.3
Price to Cash Flow	x	14.4	20.5
TTM P/E ratio	x	18.1	32.2
Price / Book Value ratio	x	3.5	6.5
Market Cap	Rs m	3,444	8,581
Dividends per share (Unadj.)	Rs	20.0	25.0

Ratio Analysis for BENARES HOT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.5x during FY24, from 3.6x 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 128.9x during FY24, from 86.0x 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 27.1% during FY24, from 23.4% 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 36.4% during FY24, from 31.7% 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 23.3% during FY24, from 19.7% 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	3.6	4.5
Debtors’ Days	Days	168	154
Interest coverage	x	86.0	128.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.7	23.3
Return on equity	%	23.4	27.1
Return on capital employed	%	31.7	36.4

To see how BENARES HOT has performed over the last 5 years, please visit here.

BENARES HOT Share Price Performance

Over the last one year, BENARES HOT share price has moved up from Rs 3,774.0 to Rs 8,940.0, registering a gain of Rs 5,166.1 or around 136.9%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for BENARES HOT and quarterly results for BENARES HOT)