CENTUM ELECTRONICS 2023-24 Annual Report Analysis

Tue, 23 Jul

CENTUM ELECTRONICS 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.

CENTUM ELECTRONICS Income Statement Analysis

• Operating income during the year rose 18.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY24 as against 8.4% in FY23.
• Depreciation charges increased by 3.3% and finance costs increased by 26.6% YoY, respectively.
• Other income grew by 16.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.7% in FY23 to 0.3% in FY24.

CENTUM ELECTRONICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,230	10,908	18.2%
Other income	Rs m	59	68	16.4%
Total Revenues	Rs m	9,288	10,976	18.2%
Gross profit	Rs m	775	810	4.5%
Depreciation	Rs m	438	453	3.3%
Interest	Rs m	273	346	26.6%
Profit before tax	Rs m	121	79	-35.1%
Tax	Rs m	54	106	95.4%
Profit after tax	Rs m	67	-28	NA
Gross profit margin	%	8.4	7.4
Effective tax rate	%	44.8	135.0
Net profit margin	%	0.7	-0.3

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CENTUM ELECTRONICS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -5.2%.
• Long-term debt down at Rs 447 million as compared to Rs 580 million during FY23, a fall of 22.9%.
• Current assets rose 3% and stood at Rs 8 billion, while fixed assets fell 11% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 11 billion during FY23, thereby witnessing a fall of 1%.

CENTUM ELECTRONICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,093	1,997	-4.6
Current Liabilities	Rs m	7,441	7,055	-5.2
Long-term Debt	Rs m	580	447	-22.9
Total Liabilities	Rs m	10,657	10,536	-1.1
Current assets	Rs m	7,367	7,600	3.2
Fixed Assets	Rs m	3,290	2,935	-10.8
Total Assets	Rs m	10,657	10,536	-1.1

CENTUM ELECTRONICS Cash Flow Statement Analysis

• CENTUM ELECTRONICS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 201.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -440 million, an improvement of 291.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 249 million from the Rs -269 million net cash flows seen during FY23.

CENTUM ELECTRONICS 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	709	2,136	201.1%
Cash Flow from Investing Activities	Rs m	-112	-440	-
Cash Flow from Financing Activities	Rs m	-881	-1,448	-
Net Cash Flow	Rs m	-269	249	-

Current Valuations for CENTUM ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.1, an decline from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,560.5, stands at -730.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.1 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 41.2 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	716.6	846.3
TTM Earnings per share	Rs	5.2	-2.1
Diluted earnings per share	Rs	5.2	-2.1
Price to Cash Flow	x	18.0	41.2
TTM P/E ratio	x	167.3	-730.5
Price / Book Value ratio	x	3.6	8.8
Market Cap	Rs m	7,622	17,512
Dividends per share (Unadj.)	Rs	4.0	6.0

Ratio Analysis for CENTUM ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.0x 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 1.2x during FY24, from 1.4x 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 -1.4% during FY24, from 3.2% 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 17.4% during FY24, from 14.8% 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 3.0% during FY24, from 3.2% 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	1.0	1.1
Debtors’ Days	Days	131	76
Interest coverage	x	1.4	1.2
Debt to equity ratio	x	0.3	0.2
Return on assets	%	3.2	3.0
Return on equity	%	3.2	-1.4
Return on capital employed	%	14.8	17.4

To see how CENTUM ELECTRONICS has performed over the last 5 years, please visit here.

CENTUM ELECTRONICS Share Price Performance

Over the last one year, CENTUM ELECTRONICS share price has moved up from Rs 1,401.8 to Rs 1,560.5, registering a gain of Rs 158.7 or around 11.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 70,993.4 (down 2.3%). Over the last one year it has moved up from 42,401.9 to 70,993.4, a gain of 28,591 points (up 67.4%).

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

(To know more, check out historical annual results for CENTUM ELECTRONICS and quarterly results for CENTUM ELECTRONICS)