CFF FLUID CONTROL 2023-24 Annual Report Analysis

Thu, 7 Nov

CFF FLUID CONTROL 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.

CFF FLUID CONTROL Income Statement Analysis

• Operating income during the year rose 51.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 67.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.8% in FY24 as against 26.1% in FY23.
• Depreciation charges increased by 237.3% and finance costs decreased by 22.0% YoY, respectively.
• Other income declined by 73.0% YoY.
• Net profit for the year grew by 68.6% YoY.
• Net profit margins during the year grew from 14.3% in FY23 to 16.0% in FY24.

CFF FLUID CONTROL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	707	1,069	51.2%
Other income	Rs m	4	1	-73.0%
Total Revenues	Rs m	711	1,070	50.5%
Gross profit	Rs m	184	308	67.1%
Depreciation	Rs m	13	45	237.3%
Interest	Rs m	31	25	-22.0%
Profit before tax	Rs m	144	240	66.7%
Tax	Rs m	43	69	62.2%
Profit after tax	Rs m	101	171	68.6%
Gross profit margin	%	26.1	28.8
Effective tax rate	%	29.6	28.8
Net profit margin	%	14.3	16.0

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CFF FLUID CONTROL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 287 million as compared to Rs 333 million in FY23, thereby witnessing an decrease of -13.9%.
• Long-term debt down at Rs 64 million as compared to Rs 303 million during FY23, a fall of 78.9%.
• Current assets rose 96% and stood at Rs 1 billion, while fixed assets rose 47% and stood at Rs 393 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 887 million during FY23, thereby witnessing a growth of 81%.

CFF FLUID CONTROL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	250	1,259	404.0
Current Liabilities	Rs m	333	287	-13.9
Long-term Debt	Rs m	303	64	-78.9
Total Liabilities	Rs m	887	1,609	81.5
Current assets	Rs m	619	1,216	96.4
Fixed Assets	Rs m	267	393	46.9
Total Assets	Rs m	887	1,609	81.5

CFF FLUID CONTROL Cash Flow Statement Analysis

• CFF FLUID CONTROL's cash flow from operating activities (CFO) during FY24 stood at Rs -267 million, an improvement of 188.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -166 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 590 million, an improvement of 125% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 157 million from the Rs -25 million net cash flows seen during FY23.

CFF FLUID CONTROL 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	-93	-267	-
Cash Flow from Investing Activities	Rs m	-194	-166	-
Cash Flow from Financing Activities	Rs m	262	590	125.4%
Net Cash Flow	Rs m	-25	157	-

Current Valuations for CFF FLUID CONTROL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.8, an improvement from the EPS of Rs 7.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 666.0, stands at 75.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.3 times, while the price to sales ratio stands at 12.1 times.
• The company's price to cash flow (P/CF) ratio stood at 32.3 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	49.5	54.9
TTM Earnings per share	Rs	7.1	8.8
Diluted earnings per share	Rs	5.2	8.8
Price to Cash Flow	x	0.0	32.3
TTM P/E ratio	x	0.0	75.9
Price / Book Value ratio	x	0.0	5.5
Market Cap	Rs m	0	6,952
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CFF FLUID CONTROL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.2x during FY24, from 1.9x 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 improved and stood at 10.8x during FY24, from 5.6x 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 13.6% during FY24, from 40.6% 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 20.0% during FY24, from 31.8% 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 12.1% during FY24, from 15.0% 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	1.9	4.2
Debtors’ Days	Days	42,009	30,137
Interest coverage	x	5.6	10.8
Debt to equity ratio	x	1.2	0.1
Return on assets	%	15.0	12.1
Return on equity	%	40.6	13.6
Return on capital employed	%	31.8	20.0

To see how CFF FLUID CONTROL has performed over the last 5 years, please visit here.

CFF FLUID CONTROL Share Price Performance

Over the last one year, CFF FLUID CONTROL share price has moved up from Rs 431.6 to Rs 666.0, registering a gain of Rs 234.4 or around 54.3%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for CFF FLUID CONTROL and quarterly results for CFF FLUID CONTROL)