COLGATE 2023-24 Annual Report Analysis

Thu, 4 Jul

COLGATE 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.

COLGATE Income Statement Analysis

• Operating income during the year rose 8.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.1% in FY24 as against 29.4% in FY23.
• Depreciation charges decreased by 1.9% and finance costs increased by 1.7% YoY, respectively.
• Other income grew by 42.8% YoY.
• Net profit for the year grew by 26.4% YoY.
• Net profit margins during the year grew from 20.0% in FY23 to 23.3% in FY24.

COLGATE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	52,262	56,804	8.7%
Other income	Rs m	536	765	42.8%
Total Revenues	Rs m	52,798	57,570	9.0%
Gross profit	Rs m	15,358	18,813	22.5%
Depreciation	Rs m	1,748	1,715	-1.9%
Interest	Rs m	49	50	1.7%
Profit before tax	Rs m	14,097	17,813	26.4%
Tax	Rs m	3,625	4,577	26.2%
Profit after tax	Rs m	10,471	13,237	26.4%
Gross profit margin	%	29.4	33.1
Effective tax rate	%	25.7	25.7
Net profit margin	%	20.0	23.3

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COLGATE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 32 billion as compared to Rs 26 billion in FY23, thereby witnessing an increase of 24.0%.
• Current assets rose 27% and stood at Rs 39 billion, while fixed assets fell 2% and stood at Rs 33 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 72 billion as against Rs 64 billion during FY23, thereby witnessing a growth of 12%.

COLGATE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,209	18,763	9.0
Current Liabilities	Rs m	25,999	32,232	24.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	64,118	71,581	11.6
Current assets	Rs m	30,631	38,877	26.9
Fixed Assets	Rs m	33,487	32,704	-2.3
Total Assets	Rs m	64,118	71,581	11.6

COLGATE Cash Flow Statement Analysis

• COLGATE's cash flow from operating activities (CFO) during FY24 stood at Rs 12 billion, an improvement of 1.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 792 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -12 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 829 million from the Rs 820 million net cash flows seen during FY23.

COLGATE 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	11,763	11,990	1.9%
Cash Flow from Investing Activities	Rs m	-75	792	-
Cash Flow from Financing Activities	Rs m	-10,867	-11,953	-
Net Cash Flow	Rs m	820	829	1.2%

Current Valuations for COLGATE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.7, an improvement from the EPS of Rs 38.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,879.6, stands at 59.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 41.7 times, while the price to sales ratio stands at 13.8 times.
• The company's price to cash flow (P/CF) ratio stood at 38.7 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	192.1	208.8
TTM Earnings per share	Rs	38.5	48.7
Diluted earnings per share	Rs	38.5	48.7
Price to Cash Flow	x	33.5	38.7
TTM P/E ratio	x	39.1	59.2
Price / Book Value ratio	x	24.7	30.8
Market Cap	Rs m	425,603	578,493
Dividends per share (Unadj.)	Rs	39.0	58.0

Ratio Analysis for COLGATE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.2x 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 357.6x during FY24, from 287.9x 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 70.5% during FY24, from 60.8% 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 95.2% during FY24, from 82.2% 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 18.6% during FY24, from 16.4% 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	1.2	1.2
Debtors’ Days	Days	110	108
Interest coverage	x	287.9	357.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.4	18.6
Return on equity	%	60.8	70.5
Return on capital employed	%	82.2	95.2

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

COLGATE Share Price Performance

Over the last one year, COLGATE share price has moved up from Rs 1,707.0 to Rs 2,879.6, registering a gain of Rs 1,172.6 or around 68.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 20,758.5 (up 0.8%). Over the last one year it has moved up from 18,935.5 to 20,758.5, a gain of 1,823 points (up 9.6%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

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