CELLO WORLD 2023-24 Annual Report Analysis

Tue, 23 Jul

CELLO WORLD 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.

CELLO WORLD Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.5% in FY24 as against 23.4% in FY23.
• Depreciation charges increased by 12.8% and finance costs increased by 45.4% YoY, respectively.
• Other income grew by 49.7% YoY.
• Net profit for the year grew by 25.0% YoY.
• Net profit margins during the year grew from 15.9% in FY23 to 17.8% in FY24.

CELLO WORLD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,967	20,003	11.3%
Other income	Rs m	167	251	49.7%
Total Revenues	Rs m	18,134	20,253	11.7%
Gross profit	Rs m	4,205	5,092	21.1%
Depreciation	Rs m	503	567	12.8%
Interest	Rs m	18	26	45.4%
Profit before tax	Rs m	3,852	4,750	23.3%
Tax	Rs m	1,001	1,188	18.7%
Profit after tax	Rs m	2,851	3,562	25.0%
Gross profit margin	%	23.4	25.5
Effective tax rate	%	26.0	25.0
Net profit margin	%	15.9	17.8

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CELLO WORLD Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 13.4%.
• Long-term debt stood at Rs 277 million as compared to Rs 87 million during FY23, a growth of 220.2%.
• Current assets rose 19% and stood at Rs 14 billion, while fixed assets rose 55% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 28%.

CELLO WORLD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,365	11,492	241.6
Current Liabilities	Rs m	5,460	6,193	13.4
Long-term Debt	Rs m	87	277	220.2
Total Liabilities	Rs m	16,368	20,982	28.2
Current assets	Rs m	11,649	13,890	19.2
Fixed Assets	Rs m	4,565	7,092	55.4
Total Assets	Rs m	16,368	20,982	28.2

CELLO WORLD Cash Flow Statement Analysis

• CELLO WORLD's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 1.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 260 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 16 million from the Rs -57 million net cash flows seen during FY23.

CELLO WORLD 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	2,274	2,312	1.7%
Cash Flow from Investing Activities	Rs m	-5,568	-2,556	-
Cash Flow from Financing Activities	Rs m	3,238	260	-92.0%
Net Cash Flow	Rs m	-57	16	-

Current Valuations for CELLO WORLD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an improvement from the EPS of Rs 14.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 951.6, stands at 59.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.3 times, while the price to sales ratio stands at 10.1 times.
• The company's price to cash flow (P/CF) ratio stood at 42.7 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	92.1	94.2
TTM Earnings per share	Rs	14.6	16.8
Diluted earnings per share	Rs	12.9	16.1
Price to Cash Flow	x	0.0	42.7
TTM P/E ratio	x	0.0	59.0
Price / Book Value ratio	x	0.0	15.3
Market Cap	Rs m	0	176,199
Dividends per share (Unadj.)	Rs	0.0	1.5

Ratio Analysis for CELLO WORLD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x 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 187.1x during FY24, from 220.4x 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 31.0% during FY24, from 84.7% 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 40.6% during FY24, from 112.1% 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 17.1% during FY24, from 17.5% 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	2.2
Debtors’ Days	Days	939	1,114
Interest coverage	x	220.4	187.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.5	17.1
Return on equity	%	84.7	31.0
Return on capital employed	%	112.1	40.6

To see how CELLO WORLD has performed over the last 5 years, please visit here.

CELLO WORLD Share Price Performance

Over the last one year, CELLO WORLD share price has moved up from Rs 0.0 to Rs 951.6, registering a gain of Rs 951.6 or around 0.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 58,823.3 (up 2.1%). Over the last one year it has moved up from 42,256.6 to 58,823.3, a gain of 16,567 points (up 39.2%).

Overall, the S&P BSE SENSEX is up 19.7% over the year.

(To know more, check out historical annual results for CELLO WORLD and quarterly results for CELLO WORLD)