CARBORUNDUM UNIVERSAL 2023-24 Annual Report Analysis

Tue, 9 Jul

CARBORUNDUM UNIVERSAL 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.

CARBORUNDUM UNIVERSAL Income Statement Analysis

• Operating income during the year rose 1.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.6% in FY24 as against 15.3% in FY23.
• Depreciation charges increased by 1.8% and finance costs decreased by 22.1% YoY, respectively.
• Other income grew by 1.2% YoY.
• Net profit for the year grew by 7.8% YoY.
• Net profit margins during the year grew from 9.5% in FY23 to 10.1% in FY24.

CARBORUNDUM UNIVERSAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	46,543	47,022	1.0%
Other income	Rs m	779	788	1.2%
Total Revenues	Rs m	47,322	47,810	1.0%
Gross profit	Rs m	7,129	7,806	9.5%
Depreciation	Rs m	1,873	1,907	1.8%
Interest	Rs m	235	183	-22.1%
Profit before tax	Rs m	5,799	6,502	12.1%
Tax	Rs m	1,382	1,741	25.9%
Profit after tax	Rs m	4,417	4,762	7.8%
Gross profit margin	%	15.3	16.6
Effective tax rate	%	23.8	26.8
Net profit margin	%	9.5	10.1

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

CARBORUNDUM UNIVERSAL 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 -8.2%.
• Long-term debt down at Rs 275 million as compared to Rs 429 million during FY23, a fall of 35.8%.
• Current assets rose 7% and stood at Rs 22 billion, while fixed assets rose 3% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 40 billion as against Rs 38 billion during FY23, thereby witnessing a growth of 5%.

CARBORUNDUM UNIVERSAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	28,019	31,030	10.7
Current Liabilities	Rs m	7,381	6,774	-8.2
Long-term Debt	Rs m	429	275	-35.8
Total Liabilities	Rs m	38,482	40,413	5.0
Current assets	Rs m	20,259	21,688	7.0
Fixed Assets	Rs m	18,223	18,726	2.8
Total Assets	Rs m	38,482	40,413	5.0

CARBORUNDUM UNIVERSAL Cash Flow Statement Analysis

• CARBORUNDUM UNIVERSAL's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 39.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 489 million net cash flows seen during FY23.

CARBORUNDUM UNIVERSAL 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	4,302	6,015	39.8%
Cash Flow from Investing Activities	Rs m	-2,572	-1,865	-
Cash Flow from Financing Activities	Rs m	-1,334	-2,140	-
Net Cash Flow	Rs m	489	1,585	224.4%

Current Valuations for CARBORUNDUM UNIVERSAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.0, an improvement from the EPS of Rs 23.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,698.0, stands at 74.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 6.9 times.
• The company's price to cash flow (P/CF) ratio stood at 32.4 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	245.0	247.1
TTM Earnings per share	Rs	23.3	25.0
Diluted earnings per share	Rs	23.2	25.0
Price to Cash Flow	x	29.9	32.4
TTM P/E ratio	x	46.6	74.7
Price / Book Value ratio	x	5.7	7.0
Market Cap	Rs m	161,077	215,795
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for CARBORUNDUM UNIVERSAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.2x during FY24, from 2.7x 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 36.5x during FY24, from 25.6x 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 15.3% during FY24, from 15.8% 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 21.4% during FY24, from 21.2% 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 12.2% during FY24, from 12.1% 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	2.7	3.2
Debtors’ Days	Days	49	53
Interest coverage	x	25.6	36.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.1	12.2
Return on equity	%	15.8	15.3
Return on capital employed	%	21.2	21.4

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

CARBORUNDUM UNIVERSAL Share Price Performance

Over the last one year, CARBORUNDUM UNIVERSAL share price has moved up from Rs 1,197.4 to Rs 1,698.0, registering a gain of Rs 500.6 or around 41.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,620.1 (up 0.7%). Over the last one year it has moved up from 40,670.4 to 75,620.1, a gain of 34,950 points (up 85.9%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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