EVEREST KANTO CYLINDER 2023-24 Annual Report Analysis

Wed, 7 Aug

EVEREST KANTO CYLINDER 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.

EVEREST KANTO CYLINDER Income Statement Analysis

• Operating income during the year fell 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.1% in FY24 as against 10.7% in FY23.
• Depreciation charges decreased by 0.8% and finance costs decreased by 30.9% YoY, respectively.
• Other income declined by 44.8% YoY.
• Net profit for the year grew by 28.6% YoY.
• Net profit margins during the year grew from 6.0% in FY23 to 8.0% in FY24.

EVEREST KANTO CYLINDER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,745	12,230	-4.0%
Other income	Rs m	122	67	-44.8%
Total Revenues	Rs m	12,866	12,297	-4.4%
Gross profit	Rs m	1,367	1,608	17.6%
Depreciation	Rs m	395	392	-0.8%
Interest	Rs m	146	101	-30.9%
Profit before tax	Rs m	947	1,182	24.8%
Tax	Rs m	188	206	9.2%
Profit after tax	Rs m	759	976	28.6%
Gross profit margin	%	10.7	13.1
Effective tax rate	%	19.9	17.4
Net profit margin	%	6.0	8.0

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

EVEREST KANTO CYLINDER Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -23.3%.
• Long-term debt down at Rs 15 million as compared to Rs 19 million during FY23, a fall of 18.2%.
• Current assets fell 3% and stood at Rs 9 billion, while fixed assets rose 18% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 4%.

EVEREST KANTO CYLINDER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,991	11,006	10.2
Current Liabilities	Rs m	3,442	2,641	-23.3
Long-term Debt	Rs m	19	15	-18.2
Total Liabilities	Rs m	13,956	14,556	4.3
Current assets	Rs m	8,977	8,699	-3.1
Fixed Assets	Rs m	4,860	5,744	18.2
Total Assets	Rs m	13,956	14,556	4.3

EVEREST KANTO CYLINDER Cash Flow Statement Analysis

• EVEREST KANTO CYLINDER's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 113.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 54.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -736 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 303 million from the Rs -135 million net cash flows seen during FY23.

EVEREST KANTO CYLINDER 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	1,061	2,264	113.4%
Cash Flow from Investing Activities	Rs m	-787	-1,211	-
Cash Flow from Financing Activities	Rs m	-426	-736	-
Net Cash Flow	Rs m	-135	303	-

Current Valuations for EVEREST KANTO CYLINDER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.7, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 162.4, stands at 18.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.0 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	113.6	109.0
TTM Earnings per share	Rs	6.8	8.7
Diluted earnings per share	Rs	6.8	8.7
Price to Cash Flow	x	8.8	11.0
TTM P/E ratio	x	13.3	18.7
Price / Book Value ratio	x	1.7	1.4
Market Cap	Rs m	17,179	15,086
Dividends per share (Unadj.)	Rs	0.7	0.7

Ratio Analysis for EVEREST KANTO CYLINDER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.3x during FY24, from 2.6x 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 12.7x during FY24, from 7.5x 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 8.9% during FY24, from 7.6% 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 11.6% during FY24, from 10.9% 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 7.4% during FY24, from 6.5% 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	2.6	3.3
Debtors’ Days	Days	527	516
Interest coverage	x	7.5	12.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.5	7.4
Return on equity	%	7.6	8.9
Return on capital employed	%	10.9	11.6

To see how EVEREST KANTO CYLINDER has performed over the last 5 years, please visit here.

EVEREST KANTO CYLINDER Share Price Performance

Over the last one year, EVEREST KANTO CYLINDER share price has moved up from Rs 129.3 to Rs 162.4, registering a gain of Rs 33.1 or around 25.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,625.8 (up 2.1%). Over the last one year it has moved up from 43,182.8 to 71,625.8, a gain of 28,443 points (up 65.9%).

Overall, the S&P BSE SENSEX is up 20.3% over the year.

(To know more, check out historical annual results for EVEREST KANTO CYLINDER and quarterly results for EVEREST KANTO CYLINDER)