EIH 2023-24 Annual Report Analysis

Thu, 18 Jul

EIH 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.

EIH Income Statement Analysis

• Operating income during the year rose 24.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 74.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 38.0% in FY24 as against 27.1% in FY23.
• Depreciation charges increased by 4.2% and finance costs decreased by 45.4% YoY, respectively.
• Other income grew by 47.8% YoY.
• Net profit for the year grew by 99.8% YoY.
• Net profit margins during the year grew from 16.8% in FY23 to 27.0% in FY24.

EIH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,188	25,113	24.4%
Other income	Rs m	776	1,147	47.8%
Total Revenues	Rs m	20,964	26,260	25.3%
Gross profit	Rs m	5,480	9,534	74.0%
Depreciation	Rs m	1,262	1,315	4.2%
Interest	Rs m	356	194	-45.4%
Profit before tax	Rs m	4,639	9,172	97.7%
Tax	Rs m	1,247	2,395	92.0%
Profit after tax	Rs m	3,392	6,777	99.8%
Gross profit margin	%	27.1	38.0
Effective tax rate	%	26.9	26.1
Net profit margin	%	16.8	27.0

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EIH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 1.0%.
• Current assets rose 22% and stood at Rs 11 billion, while fixed assets rose 11% and stood at Rs 39 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 53 billion as against Rs 44 billion during FY23, thereby witnessing a growth of 20%.

EIH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	33,746	39,396	16.7
Current Liabilities	Rs m	5,078	5,130	1.0
Long-term Debt	Rs m	360	0	-100.0
Total Liabilities	Rs m	44,043	52,933	20.2
Current assets	Rs m	8,764	10,725	22.4
Fixed Assets	Rs m	35,279	38,990	10.5
Total Assets	Rs m	44,043	52,933	20.2

EIH Cash Flow Statement Analysis

• EIH's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 15.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 81.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -14 million from the Rs 156 million net cash flows seen during FY23.

EIH 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	6,143	7,117	15.9%
Cash Flow from Investing Activities	Rs m	-2,980	-5,415	-
Cash Flow from Financing Activities	Rs m	-2,988	-1,669	-
Net Cash Flow	Rs m	156	-14	-

Current Valuations for EIH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.8, an improvement from the EPS of Rs 5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 410.0, stands at 39.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 10.2 times.
• The company's price to cash flow (P/CF) ratio stood at 25.0 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	32.3	40.2
TTM Earnings per share	Rs	5.4	10.8
Diluted earnings per share	Rs	5.4	10.8
Price to Cash Flow	x	22.3	25.0
TTM P/E ratio	x	32.4	39.8
Price / Book Value ratio	x	3.0	5.1
Market Cap	Rs m	101,919	202,524
Dividends per share (Unadj.)	Rs	1.1	1.2

Ratio Analysis for EIH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.7x 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 48.3x during FY24, from 14.0x 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 17.2% during FY24, from 10.1% 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 23.8% during FY24, from 14.6% 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 13.2% during FY24, from 8.5% 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	1.7	2.1
Debtors’ Days	Days	41	29
Interest coverage	x	14.0	48.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.5	13.2
Return on equity	%	10.1	17.2
Return on capital employed	%	14.6	23.8

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

EIH Share Price Performance

Over the last one year, EIH share price has moved up from Rs 214.3 to Rs 410.0, registering a gain of Rs 195.7 or around 91.3%.

Overall, the S&P BSE SENSEX is up 21.3% over the year.

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