ELECTRONICS MART 2023-24 Annual Report Analysis

Mon, 5 Aug

ELECTRONICS MART 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.

ELECTRONICS MART Income Statement Analysis

• Operating income during the year rose 15.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.2% in FY24 as against 6.2% in FY23.
• Depreciation charges increased by 23.8% and finance costs increased by 9.3% YoY, respectively.
• Other income declined by 8.8% YoY.
• Net profit for the year grew by 49.8% YoY.
• Net profit margins during the year grew from 2.3% in FY23 to 2.9% in FY24.

ELECTRONICS MART Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	54,457	62,854	15.4%
Other income	Rs m	110	101	-8.8%
Total Revenues	Rs m	54,568	62,955	15.4%
Gross profit	Rs m	3,361	4,495	33.7%
Depreciation	Rs m	854	1,057	23.8%
Interest	Rs m	985	1,077	9.3%
Profit before tax	Rs m	1,632	2,462	50.8%
Tax	Rs m	404	622	54.0%
Profit after tax	Rs m	1,228	1,839	49.8%
Gross profit margin	%	6.2	7.2
Effective tax rate	%	24.8	25.3
Net profit margin	%	2.3	2.9

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

ELECTRONICS MART Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 5.4%.
• Long-term debt down at Rs 980 million as compared to Rs 1 billion during FY23, a fall of 2.8%.
• Current assets rose 9% and stood at Rs 15 billion, while fixed assets rose 18% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 30 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 13%.

ELECTRONICS MART Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,843	13,697	15.7
Current Liabilities	Rs m	7,414	7,816	5.4
Long-term Debt	Rs m	1,008	980	-2.8
Total Liabilities	Rs m	26,688	30,274	13.4
Current assets	Rs m	14,079	15,416	9.5
Fixed Assets	Rs m	12,609	14,858	17.8
Total Assets	Rs m	26,688	30,274	13.4

ELECTRONICS MART Cash Flow Statement Analysis

• ELECTRONICS MART's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 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 -1 billion from the Rs 2 billion net cash flows seen during FY23.

ELECTRONICS MART 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	1,598	-
Cash Flow from Investing Activities	Rs m	-3,007	-1,169	-
Cash Flow from Financing Activities	Rs m	4,700	-1,606	-
Net Cash Flow	Rs m	1,688	-1,177	-

Current Valuations for ELECTRONICS MART

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an improvement from the EPS of Rs 3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 207.2, stands at 43.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.8 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 20.6 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	141.5	163.4
TTM Earnings per share	Rs	3.2	4.8
Diluted earnings per share	Rs	3.2	4.8
Price to Cash Flow	x	12.3	20.6
TTM P/E ratio	x	20.8	43.3
Price / Book Value ratio	x	2.7	4.4
Market Cap	Rs m	31,742	59,773
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ELECTRONICS MART

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.9x 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 3.3x during FY24, from 2.7x 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 13.4% during FY24, from 10.4% 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 24.1% during FY24, from 20.4% 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 9.6% during FY24, from 8.3% 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	1.9	2.0
Debtors’ Days	Days	9	11
Interest coverage	x	2.7	3.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.3	9.6
Return on equity	%	10.4	13.4
Return on capital employed	%	20.4	24.1

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

ELECTRONICS MART Share Price Performance

Over the last one year, ELECTRONICS MART share price has moved up from Rs 112.9 to Rs 207.2, registering a gain of Rs 94.3 or around 83.5%.

Overall, the S&P BSE SENSEX is up 18.6% over the year.

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