CONTAINER CORPORATION 2023-24 Annual Report Analysis

Mon, 2 Sep

CONTAINER CORPORATION 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.

CONTAINER CORPORATION Income Statement Analysis

• Operating income during the year rose 5.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.0% in FY24 as against 23.1% in FY23.
• Depreciation charges increased by 8.0% and finance costs increased by 10.9% YoY, respectively.
• Other income grew by 18.2% YoY.
• Net profit for the year grew by 7.5% YoY.
• Net profit margins during the year grew from 14.4% in FY23 to 14.6% in FY24.

CONTAINER CORPORATION Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	81,691	86,534	5.9%
Other income	Rs m	3,134	3,703	18.2%
Total Revenues	Rs m	84,825	90,238	6.4%
Gross profit	Rs m	18,876	19,885	5.3%
Depreciation	Rs m	5,730	6,186	8.0%
Interest	Rs m	647	717	10.9%
Profit before tax	Rs m	15,633	16,685	6.7%
Tax	Rs m	3,897	4,065	4.3%
Profit after tax	Rs m	11,736	12,621	7.5%
Gross profit margin	%	23.1	23.0
Effective tax rate	%	24.9	24.4
Net profit margin	%	14.4	14.6

Don't Miss: Key Information for Long-term Investors

CONTAINER CORPORATION Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 12 billion as compared to Rs 13 billion in FY23, thereby witnessing an decrease of -7.6%.
• Long-term debt down at Rs 242 million as compared to Rs 491 million during FY23, a fall of 50.7%.
• Current assets rose 4% and stood at Rs 43 billion, while fixed assets rose 5% and stood at Rs 97 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 140 billion as against Rs 134 billion during FY23, thereby witnessing a growth of 4%.

CONTAINER CORPORATION Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	112,263	118,232	5.3
Current Liabilities	Rs m	13,483	12,457	-7.6
Long-term Debt	Rs m	491	242	-50.7
Total Liabilities	Rs m	133,727	139,559	4.4
Current assets	Rs m	41,280	42,860	3.8
Fixed Assets	Rs m	92,447	96,699	4.6
Total Assets	Rs m	133,727	139,559	4.4

CONTAINER CORPORATION Cash Flow Statement Analysis

• CONTAINER CORPORATION's cash flow from operating activities (CFO) during FY24 stood at Rs 14 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion, an improvement of 17.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 billion, an improvement of 2% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs -412 million net cash flows seen during FY23.

CONTAINER CORPORATION 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	14,059	13,885	-1.2%
Cash Flow from Investing Activities	Rs m	-5,935	-6,987	-
Cash Flow from Financing Activities	Rs m	-8,536	-8,401	-
Net Cash Flow	Rs m	-412	-1,503	-

Current Valuations for CONTAINER CORPORATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.7, an improvement from the EPS of Rs 19.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 963.6, stands at 47.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 6.8 times.
• The company's price to cash flow (P/CF) ratio stood at 26.0 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	134.1	142.0
TTM Earnings per share	Rs	19.3	20.7
Diluted earnings per share	Rs	19.3	20.7
Price to Cash Flow	x	20.3	26.0
TTM P/E ratio	x	30.7	47.0
Price / Book Value ratio	x	3.8	4.1
Market Cap	Rs m	421,205	488,776
Dividends per share (Unadj.)	Rs	11.0	11.5

Ratio Analysis for CONTAINER CORPORATION

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY24, from 3.1x 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 24.3x during FY24, from 25.2x 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 improved and stood at 10.7% during FY24, from 10.5% 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 14.7% during FY24, from 14.4% 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 9.6% during FY24, from 9.3% 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	3.1	3.4
Debtors’ Days	Days	1	1
Interest coverage	x	25.2	24.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	9.6
Return on equity	%	10.5	10.7
Return on capital employed	%	14.4	14.7

To see how CONTAINER CORPORATION has performed over the last 5 years, please visit here.

CONTAINER CORPORATION Share Price Performance

Over the last one year, CONTAINER CORPORATION share price has moved up from Rs 687.4 to Rs 963.6, registering a gain of Rs 276.2 or around 40.2%.

Overall, the S&P BSE SENSEX is up 27.0% over the year.

(To know more, check out historical annual results for CONTAINER CORPORATION and quarterly results for CONTAINER CORPORATION)