ELECTROSTEEL CAST 2023-24 Annual Report Analysis

Mon, 5 Aug

ELECTROSTEEL CAST 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.

ELECTROSTEEL CAST Income Statement Analysis

• Operating income during the year rose 2.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 63.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY24 as against 9.8% in FY23.
• Depreciation charges increased by 2.7% and finance costs decreased by 23.5% YoY, respectively.
• Other income grew by 4.1% YoY.
• Net profit for the year grew by 134.1% YoY.
• Net profit margins during the year grew from 4.3% in FY23 to 9.9% in FY24.

ELECTROSTEEL CAST Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	72,755	74,780	2.8%
Other income	Rs m	1,113	1,158	4.1%
Total Revenues	Rs m	73,868	75,938	2.8%
Gross profit	Rs m	7,112	11,648	63.8%
Depreciation	Rs m	1,212	1,245	2.7%
Interest	Rs m	2,859	2,188	-23.5%
Profit before tax	Rs m	4,154	9,373	125.6%
Tax	Rs m	992	1,972	98.8%
Profit after tax	Rs m	3,162	7,402	134.1%
Gross profit margin	%	9.8	15.6
Effective tax rate	%	23.9	21.0
Net profit margin	%	4.3	9.9

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ELECTROSTEEL CAST Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 29 billion as compared to Rs 29 billion in FY23, thereby witnessing an decrease of -1.5%.
• Long-term debt down at Rs 4 billion as compared to Rs 7 billion during FY23, a fall of 43.3%.
• Current assets rose 6% and stood at Rs 46 billion, while fixed assets rose 8% and stood at Rs 45 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 91 billion as against Rs 85 billion during FY23, thereby witnessing a growth of 7%.

ELECTROSTEEL CAST Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	43,576	51,129	17.3
Current Liabilities	Rs m	29,419	28,992	-1.5
Long-term Debt	Rs m	7,366	4,178	-43.3
Total Liabilities	Rs m	85,186	91,083	6.9
Current assets	Rs m	43,138	45,759	6.1
Fixed Assets	Rs m	42,048	45,323	7.8
Total Assets	Rs m	85,186	91,083	6.9

ELECTROSTEEL CAST Cash Flow Statement Analysis

• ELECTROSTEEL CAST's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 78.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -365 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 486 million from the Rs 168 million net cash flows seen during FY23.

ELECTROSTEEL CAST 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	4,522	8,055	78.1%
Cash Flow from Investing Activities	Rs m	1,683	-365	-
Cash Flow from Financing Activities	Rs m	-6,037	-7,204	-
Net Cash Flow	Rs m	168	486	189.9%

Current Valuations for ELECTROSTEEL CAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.0, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 198.0, stands at 13.7 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 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	122.4	121.0
TTM Earnings per share	Rs	5.3	12.0
Diluted earnings per share	Rs	5.1	12.0
Price to Cash Flow	x	4.5	8.5
TTM P/E ratio	x	6.3	13.7
Price / Book Value ratio	x	0.5	1.4
Market Cap	Rs m	21,941	73,162
Dividends per share (Unadj.)	Rs	0.9	1.4

Ratio Analysis for ELECTROSTEEL CAST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x 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 improved and stood at 5.3x during FY24, from 2.5x 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 14.5% during FY24, from 7.3% 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 improved and stood at 20.9% during FY24, from 13.8% 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 10.5% during FY24, from 7.1% 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	1.5	1.6
Debtors’ Days	Days	530	666
Interest coverage	x	2.5	5.3
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.1	10.5
Return on equity	%	7.3	14.5
Return on capital employed	%	13.8	20.9

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

ELECTROSTEEL CAST Share Price Performance

Over the last one year, ELECTROSTEEL CAST share price has moved up from Rs 61.8 to Rs 198.0, registering a gain of Rs 136.3 or around 220.6%.

Overall, the S&P BSE SENSEX is up 18.5% over the year.

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