ALANKIT 2023-24 Annual Report Analysis

Wed, 31 Jul

ALANKIT 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.

ALANKIT Income Statement Analysis

• Operating income during the year fell 24.4% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.2% in FY24 as against 12.0% in FY23.
• Depreciation charges decreased by 9.5% and finance costs increased by 45.3% YoY, respectively.
• Other income grew by 17.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 11.3% in FY23 to 9.3% in FY24.

ALANKIT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,117	2,357	-24.4%
Other income	Rs m	101	118	17.4%
Total Revenues	Rs m	3,218	2,475	-23.1%
Gross profit	Rs m	-376	263	NA
Depreciation	Rs m	85	77	-9.5%
Interest	Rs m	24	35	45.3%
Profit before tax	Rs m	-384	270	NA
Tax	Rs m	-32	50	NA
Profit after tax	Rs m	-351	220	NA
Gross profit margin	%	-12.0	11.2
Effective tax rate	%	8.4	18.5
Net profit margin	%	-11.3	9.3

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ALANKIT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 120.8%.
• Long-term debt down at Rs 55 million as compared to Rs 74 million during FY23, a fall of 25.0%.
• Current assets rose 22% and stood at Rs 3 billion, while fixed assets rose 202% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 76%.

ALANKIT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,610	2,762	71.6
Current Liabilities	Rs m	1,019	2,250	120.8
Long-term Debt	Rs m	74	55	-25.0
Total Liabilities	Rs m	3,022	5,311	75.7
Current assets	Rs m	2,127	2,604	22.5
Fixed Assets	Rs m	896	2,706	202.1
Total Assets	Rs m	3,022	5,311	75.7

ALANKIT Cash Flow Statement Analysis

• ALANKIT's cash flow from operating activities (CFO) during FY24 stood at Rs 96 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -799 million, an improvement of 320.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 94% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 515 million from the Rs -56 million net cash flows seen during FY23.

ALANKIT 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	-494	96	-
Cash Flow from Investing Activities	Rs m	-190	-799	-
Cash Flow from Financing Activities	Rs m	628	1,217	93.9%
Net Cash Flow	Rs m	-56	515	-

Current Valuations for ALANKIT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.8, an improvement from the EPS of Rs -1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.3, stands at 30.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.1 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	13.9	8.7
TTM Earnings per share	Rs	-1.6	0.8
Diluted earnings per share	Rs	-1.3	0.8
Price to Cash Flow	x	-7.4	14.1
TTM P/E ratio	x	-5.6	30.0
Price / Book Value ratio	x	1.6	1.5
Market Cap	Rs m	2,616	4,176
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ALANKIT

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 2.1x 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 8.7x during FY24, from -14.9x 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 8.0% during FY24, from -21.8% 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 10.8% during FY24, from -21.3% 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 4.8% during FY24, from -10.8% 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	2.1	1.2
Debtors’ Days	Days	801	1,113
Interest coverage	x	-14.9	8.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-10.8	4.8
Return on equity	%	-21.8	8.0
Return on capital employed	%	-21.3	10.8

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

ALANKIT Share Price Performance

Over the last one year, ALANKIT share price has moved up from Rs 11.1 to Rs 27.3, registering a gain of Rs 16.3 or around 147.1%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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