IGARASHI MOTORS 2023-24 Annual Report Analysis

Thu, 18 Jul

IGARASHI MOTORS 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.

IGARASHI MOTORS Income Statement Analysis

• Operating income during the year rose 10.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.3% in FY24 as against 9.3% in FY23.
• Depreciation charges increased by 4.1% and finance costs increased by 3.4% YoY, respectively.
• Other income declined by 79.7% YoY.
• Net profit for the year grew by 82.8% YoY.
• Net profit margins during the year grew from 0.8% in FY23 to 1.3% in FY24.

IGARASHI MOTORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,562	7,250	10.5%
Other income	Rs m	80	16	-79.7%
Total Revenues	Rs m	6,643	7,267	9.4%
Gross profit	Rs m	611	746	22.2%
Depreciation	Rs m	472	491	4.1%
Interest	Rs m	129	133	3.4%
Profit before tax	Rs m	91	139	52.5%
Tax	Rs m	39	43	11.4%
Profit after tax	Rs m	52	96	82.8%
Gross profit margin	%	9.3	10.3
Effective tax rate	%	42.5	31.0
Net profit margin	%	0.8	1.3

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

IGARASHI MOTORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 14.0%.
• Long-term debt stood at Rs 194 million as compared to Rs 82 million during FY23, a growth of 137.0%.
• Current assets rose 11% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 7%.

IGARASHI MOTORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,395	4,470	1.7
Current Liabilities	Rs m	2,331	2,657	14.0
Long-term Debt	Rs m	82	194	137.0
Total Liabilities	Rs m	7,262	7,736	6.5
Current assets	Rs m	3,290	3,645	10.8
Fixed Assets	Rs m	3,972	4,091	3.0
Total Assets	Rs m	7,262	7,736	6.5

IGARASHI MOTORS Cash Flow Statement Analysis

• IGARASHI MOTORS's cash flow from operating activities (CFO) during FY24 stood at Rs 503 million, an improvement of 47.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -512 million, an improvement of 61.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 million, an improvement of 103% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -7 million from the Rs -11 million net cash flows seen during FY23.

IGARASHI MOTORS 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	340	503	47.9%
Cash Flow from Investing Activities	Rs m	-316	-512	-
Cash Flow from Financing Activities	Rs m	-36	1	-
Net Cash Flow	Rs m	-11	-7	-

Current Valuations for IGARASHI MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.0, an improvement from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 514.4, stands at 169.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 27.8 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	208.5	230.3
TTM Earnings per share	Rs	1.7	3.0
Diluted earnings per share	Rs	1.7	3.0
Price to Cash Flow	x	20.9	27.8
TTM P/E ratio	x	209.1	169.1
Price / Book Value ratio	x	2.6	3.6
Market Cap	Rs m	11,606	16,284
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for IGARASHI MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.4x 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 improved and stood at 2.0x during FY24, from 1.7x 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 2.1% during FY24, from 1.2% 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 improved and stood at 5.8% during FY24, from 4.9% 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 3.0% during FY24, from 2.5% 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	1.4	1.4
Debtors’ Days	Days	976	1,044
Interest coverage	x	1.7	2.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.5	3.0
Return on equity	%	1.2	2.1
Return on capital employed	%	4.9	5.8

To see how IGARASHI MOTORS has performed over the last 5 years, please visit here.

IGARASHI MOTORS Share Price Performance

Over the last one year, IGARASHI MOTORS share price has moved up from Rs 487.1 to Rs 514.4, registering a gain of Rs 27.3 or around 5.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,460.1 (down 0.5%). Over the last one year it has moved up from 41,608.8 to 74,460.1, a gain of 32,851 points (up 79.0%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for IGARASHI MOTORS and quarterly results for IGARASHI MOTORS)