BLUE STAR 2023-24 Annual Report Analysis

Tue, 16 Jul

BLUE STAR 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.

BLUE STAR Income Statement Analysis

• Operating income during the year rose 21.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.5% in FY24 as against 8.3% in FY23.
• Depreciation charges increased by 15.1% and finance costs increased by 6.2% YoY, respectively.
• Other income grew by 166.3% YoY.
• Net profit for the year grew by 3.4% YoY.
• Net profit margins during the year declined from 5.0% in FY23 to 4.3% in FY24.

BLUE STAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	79,773	96,854	21.4%
Other income	Rs m	309	822	166.3%
Total Revenues	Rs m	80,082	97,676	22.0%
Gross profit	Rs m	6,640	6,307	-5.0%
Depreciation	Rs m	848	976	15.1%
Interest	Rs m	547	581	6.2%
Profit before tax	Rs m	5,554	5,572	0.3%
Tax	Rs m	1,547	1,429	-7.7%
Profit after tax	Rs m	4,007	4,143	3.4%
Gross profit margin	%	8.3	6.5
Effective tax rate	%	27.9	25.6
Net profit margin	%	5.0	4.3

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BLUE STAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 39 billion as compared to Rs 38 billion in FY23, thereby witnessing an increase of 1.2%.
• Current assets rose 19% and stood at Rs 50 billion, while fixed assets rose 32% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 66 billion as against Rs 54 billion during FY23, thereby witnessing a growth of 22%.

BLUE STAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,307	26,101	96.2
Current Liabilities	Rs m	38,319	38,796	1.2
Long-term Debt	Rs m	1,617	0	-100.0
Total Liabilities	Rs m	54,393	66,110	21.5
Current assets	Rs m	42,490	50,400	18.6
Fixed Assets	Rs m	11,887	15,709	32.2
Total Assets	Rs m	54,393	66,110	21.5

BLUE STAR Cash Flow Statement Analysis

• BLUE STAR's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 18.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 188.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 580% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -112 million net cash flows seen during FY23.

BLUE STAR 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	2,432	2,892	18.9%
Cash Flow from Investing Activities	Rs m	-1,817	-5,246	-
Cash Flow from Financing Activities	Rs m	-759	3,648	-
Net Cash Flow	Rs m	-112	1,298	-

Current Valuations for BLUE STAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.2, an decline from the EPS of Rs 41.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,709.0, stands at 84.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.5 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 40.8 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	828.3	471.1
TTM Earnings per share	Rs	41.6	20.2
Diluted earnings per share	Rs	19.5	20.1
Price to Cash Flow	x	29.2	40.8
TTM P/E ratio	x	35.4	84.9
Price / Book Value ratio	x	4.3	8.0
Market Cap	Rs m	57,674	208,810
Dividends per share (Unadj.)	Rs	12.0	7.0

Ratio Analysis for BLUE STAR

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.1x 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 10.6x during FY24, from 11.2x 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 15.9% during FY24, from 30.1% 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 declined and down at 23.6% during FY24, from 40.9% 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 7.1% during FY24, from 8.4% 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	1.1	1.3
Debtors’ Days	Days	7	7
Interest coverage	x	11.2	10.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.4	7.1
Return on equity	%	30.1	15.9
Return on capital employed	%	40.9	23.6

To see how BLUE STAR has performed over the last 5 years, please visit here.

BLUE STAR Share Price Performance

Over the last one year, BLUE STAR share price has moved up from Rs 792.7 to Rs 1,709.0, registering a gain of Rs 916.3 or around 115.6%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 59,155.4 (down 0.0%). Over the last one year it has moved up from 42,805.6 to 59,155.4, a gain of 16,350 points (up 38.2%).

Overall, the S&P BSE SENSEX is up 23.4% over the year.

(To know more, check out historical annual results for BLUE STAR and quarterly results for BLUE STAR)