EKI ENERGY SERVICES 2023-24 Annual Report Analysis

Mon, 12 Aug

EKI ENERGY SERVICES 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.

EKI ENERGY SERVICES Income Statement Analysis

• Operating income during the year fell 79.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 50.0% in FY24 as against 12.6% in FY23.
• Depreciation charges increased by 32.8% and finance costs decreased by 46.5% YoY, respectively.
• Other income declined by 16.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 9.3% in FY23 to 49.1% in FY24.

EKI ENERGY SERVICES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,864	2,634	-79.5%
Other income	Rs m	129	108	-16.4%
Total Revenues	Rs m	12,993	2,742	-78.9%
Gross profit	Rs m	1,624	-1,316	NA
Depreciation	Rs m	40	53	32.8%
Interest	Rs m	57	30	-46.5%
Profit before tax	Rs m	1,656	-1,292	NA
Tax	Rs m	460	0	-100.0%
Profit after tax	Rs m	1,196	-1,292	NA
Gross profit margin	%	12.6	-50.0
Effective tax rate	%	27.8	0.0
Net profit margin	%	9.3	-49.1

Dear Reader: If You Invest in Midcap Stocks, this is for You

EKI ENERGY SERVICES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 443 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -65.4%.
• Long-term debt down at Rs 17 million as compared to Rs 225 million during FY23, a fall of 92.6%.
• Current assets fell 49% and stood at Rs 4 billion, while fixed assets rose 63% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 9 billion during FY23, thereby witnessing a fall of 25%.

EKI ENERGY SERVICES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,144	3,893	-24.3
Current Liabilities	Rs m	1,278	443	-65.4
Long-term Debt	Rs m	225	17	-92.6
Total Liabilities	Rs m	8,883	6,624	-25.4
Current assets	Rs m	7,042	3,623	-48.5
Fixed Assets	Rs m	1,842	3,001	63.0
Total Assets	Rs m	8,883	6,624	-25.4

EKI ENERGY SERVICES Cash Flow Statement Analysis

• EKI ENERGY SERVICES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 16.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -970 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -607 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 76 million from the Rs 262 million net cash flows seen during FY23.

EKI ENERGY SERVICES 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	1,413	1,652	16.9%
Cash Flow from Investing Activities	Rs m	-1,679	-970	-
Cash Flow from Financing Activities	Rs m	528	-607	-
Net Cash Flow	Rs m	262	76	-71.1%

Current Valuations for EKI ENERGY SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -46.9, an decline from the EPS of Rs 43.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 333.2, stands at -9.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 3.5 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	467.6	95.7
TTM Earnings per share	Rs	43.5	-46.9
Diluted earnings per share	Rs	43.5	-46.9
Price to Cash Flow	x	12.0	-11.0
TTM P/E ratio	x	15.2	-9.6
Price / Book Value ratio	x	9.3	3.5
Market Cap	Rs m	47,814	13,657
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EKI ENERGY SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.2x during FY24, from 5.5x 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 deteriorated and stood at -41.7x during FY24, from 30.3x 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 -33.2% during FY24, from 23.3% 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 declined and down at -32.3% during FY24, from 31.9% 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 declined and down at -19.0% during FY24, from 14.1% 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	5.5	8.2
Debtors’ Days	Days	98	657
Interest coverage	x	30.3	-41.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.1	-19.0
Return on equity	%	23.3	-33.2
Return on capital employed	%	31.9	-32.3

To see how EKI ENERGY SERVICES has performed over the last 5 years, please visit here.

EKI ENERGY SERVICES Share Price Performance

Over the last one year, EKI ENERGY SERVICES share price has moved down from Rs 456.3 to Rs 333.2, registering a loss of Rs 123.1 or around 27.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 39,760.3 (down 0.2%). Over the last one year it has moved up from 31,019.3 to 39,760.3, a gain of 8,741 points (up 28.2%).

Overall, the S&P BSE SENSEX is up 20.7% over the year.

(To know more, check out historical annual results for EKI ENERGY SERVICES and quarterly results for EKI ENERGY SERVICES)