CARE RATING 2023-24 Annual Report Analysis

Tue, 18 Jun

CARE RATING 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.

CARE RATING Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.8% in FY24 as against 35.6% in FY23.
• Depreciation charges decreased by 0.4% and finance costs increased by 70.9% YoY, respectively.
• Other income grew by 23.1% YoY.
• Net profit for the year grew by 20.0% YoY.
• Net profit margins during the year grew from 30.6% in FY23 to 30.9% in FY24.

CARE RATING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,790	3,317	18.9%
Other income	Rs m	379	467	23.1%
Total Revenues	Rs m	3,169	3,784	19.4%
Gross profit	Rs m	993	1,121	12.9%
Depreciation	Rs m	105	105	-0.4%
Interest	Rs m	10	17	70.9%
Profit before tax	Rs m	1,257	1,466	16.6%
Tax	Rs m	403	441	9.4%
Profit after tax	Rs m	855	1,026	20.0%
Gross profit margin	%	35.6	33.8
Effective tax rate	%	32.0	30.1
Net profit margin	%	30.6	30.9

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CARE RATING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 787 million as compared to Rs 578 million in FY23, thereby witnessing an increase of 36.1%.
• Current assets rose 12% and stood at Rs 7 billion, while fixed assets fell 0% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 9%.

CARE RATING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,658	7,120	7.0
Current Liabilities	Rs m	578	787	36.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,696	8,418	9.4
Current assets	Rs m	6,018	6,745	12.1
Fixed Assets	Rs m	1,678	1,672	-0.4
Total Assets	Rs m	7,696	8,418	9.4

CARE RATING Cash Flow Statement Analysis

• CARE RATING's cash flow from operating activities (CFO) during FY24 stood at Rs 909 million, an improvement of 10.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -391 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -630 million, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -111 million from the Rs 318 million net cash flows seen during FY23.

CARE RATING 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	822	909	10.5%
Cash Flow from Investing Activities	Rs m	129	-391	-
Cash Flow from Financing Activities	Rs m	-633	-630	-
Net Cash Flow	Rs m	318	-111	-

Current Valuations for CARE RATING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.4, an improvement from the EPS of Rs 28.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,094.0, stands at 31.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 9.8 times.
• The company's price to cash flow (P/CF) ratio stood at 25.0 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	93.9	111.1
TTM Earnings per share	Rs	28.8	34.4
Diluted earnings per share	Rs	28.6	34.3
Price to Cash Flow	x	20.0	25.0
TTM P/E ratio	x	22.5	31.9
Price / Book Value ratio	x	2.5	4.0
Market Cap	Rs m	16,346	28,222
Dividends per share (Unadj.)	Rs	25.0	18.0

Ratio Analysis for CARE RATING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 8.6x during FY24, from 10.4x 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 86.6x during FY24, from 126.5x 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 14.4% during FY24, from 12.8% 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 20.8% during FY24, from 19.0% 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 12.4% during FY24, from 11.2% 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	10.4	8.6
Debtors’ Days	Days	267	247
Interest coverage	x	126.5	86.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	12.4
Return on equity	%	12.8	14.4
Return on capital employed	%	19.0	20.8

To see how CARE RATING has performed over the last 5 years, please visit here.

CARE RATING Share Price Performance

Over the last one year, CARE RATING share price has moved up from Rs 681.7 to Rs 1,094.0, registering a gain of Rs 412.4 or around 60.5%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for CARE RATING and quarterly results for CARE RATING)