ORIENTAL AROMATICS 2023-24 Annual Report Analysis

Wed, 31 Jul

ORIENTAL AROMATICS 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.

ORIENTAL AROMATICS Income Statement Analysis

• Operating income during the year fell 1.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.6% in FY24 as against 6.4% in FY23.
• Depreciation charges increased by 1.9% and finance costs increased by 56.3% YoY, respectively.
• Other income grew by 25.2% YoY.
• Net profit for the year declined by 53.9% YoY.
• Net profit margins during the year declined from 2.3% in FY23 to 1.1% in FY24.

ORIENTAL AROMATICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,491	8,364	-1.5%
Other income	Rs m	58	73	25.2%
Total Revenues	Rs m	8,549	8,437	-1.3%
Gross profit	Rs m	541	469	-13.3%
Depreciation	Rs m	194	198	1.9%
Interest	Rs m	130	204	56.3%
Profit before tax	Rs m	275	141	-48.9%
Tax	Rs m	77	50	-36.0%
Profit after tax	Rs m	197	91	-53.9%
Gross profit margin	%	6.4	5.6
Effective tax rate	%	28.2	35.2
Net profit margin	%	2.3	1.1

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ORIENTAL AROMATICS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -6.7%.
• Long-term debt stood at Rs 519 million as compared to Rs 316 million during FY23, a growth of 63.9%.
• Current assets fell 17% and stood at Rs 5 billion, while fixed assets rose 34% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 1%.

ORIENTAL AROMATICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,249	6,323	1.2
Current Liabilities	Rs m	2,981	2,782	-6.7
Long-term Debt	Rs m	316	519	63.9
Total Liabilities	Rs m	9,865	9,950	0.9
Current assets	Rs m	6,394	5,283	-17.4
Fixed Assets	Rs m	3,470	4,666	34.5
Total Assets	Rs m	9,865	9,950	0.9

ORIENTAL AROMATICS Cash Flow Statement Analysis

• ORIENTAL AROMATICS'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 -990 million, an improvement of 113.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -482 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -54 million from the Rs 94 million net cash flows seen during FY23.

ORIENTAL AROMATICS 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	-223	1,418	-
Cash Flow from Investing Activities	Rs m	-465	-990	-
Cash Flow from Financing Activities	Rs m	781	-482	-
Net Cash Flow	Rs m	94	-54	-

Current Valuations for ORIENTAL AROMATICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.7, an decline from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 467.0, stands at 172.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 46.5 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	252.3	248.6
TTM Earnings per share	Rs	5.9	2.7
Diluted earnings per share	Rs	5.9	2.7
Price to Cash Flow	x	30.2	46.5
TTM P/E ratio	x	60.0	172.6
Price / Book Value ratio	x	2.8	2.1
Market Cap	Rs m	17,582	13,439
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for ORIENTAL AROMATICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 2.1x 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 1.7x during FY24, from 3.1x 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 1.4% during FY24, from 3.2% 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 5.0% during FY24, from 6.2% 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 3.0% during FY24, from 3.3% 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	2.1	1.9
Debtors’ Days	Days	817	788
Interest coverage	x	3.1	1.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	3.3	3.0
Return on equity	%	3.2	1.4
Return on capital employed	%	6.2	5.0

To see how ORIENTAL AROMATICS has performed over the last 5 years, please visit here.

ORIENTAL AROMATICS Share Price Performance

Over the last one year, ORIENTAL AROMATICS share price has moved up from Rs 434.2 to Rs 467.0, registering a gain of Rs 32.8 or around 7.5%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for ORIENTAL AROMATICS and quarterly results for ORIENTAL AROMATICS)