ELGI RUBBER 2023-24 Annual Report Analysis

Tue, 12 Nov

ELGI RUBBER 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.

ELGI RUBBER Income Statement Analysis

• Operating income during the year fell 2.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY24 as against 6.2% in FY23.
• Depreciation charges increased by 17.3% and finance costs increased by 9.3% YoY, respectively.
• Other income declined by 10.9% YoY.
• Net profit for the year grew by 72.8% YoY.
• Net profit margins during the year grew from 1.7% in FY23 to 3.0% in FY24.

ELGI RUBBER Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,945	3,864	-2.0%
Other income	Rs m	252	224	-10.9%
Total Revenues	Rs m	4,197	4,089	-2.6%
Gross profit	Rs m	245	358	46.5%
Depreciation	Rs m	163	191	17.3%
Interest	Rs m	233	254	9.3%
Profit before tax	Rs m	101	137	36.3%
Tax	Rs m	33	20	-38.1%
Profit after tax	Rs m	68	117	72.8%
Gross profit margin	%	6.2	9.3
Effective tax rate	%	32.9	14.9
Net profit margin	%	1.7	3.0

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ELGI RUBBER Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 0.2%.
• Long-term debt stood at Rs 1 billion as compared to Rs 763 million during FY23, a growth of 34.7%.
• Current assets rose 5% and stood at Rs 2 billion, while fixed assets rose 7% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 7%.

ELGI RUBBER Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,840	1,897	3.1
Current Liabilities	Rs m	2,725	2,732	0.2
Long-term Debt	Rs m	763	1,027	34.7
Total Liabilities	Rs m	5,052	5,392	6.7
Current assets	Rs m	2,133	2,242	5.1
Fixed Assets	Rs m	2,919	3,128	7.2
Total Assets	Rs m	5,052	5,392	6.7

ELGI RUBBER Cash Flow Statement Analysis

• ELGI RUBBER's cash flow from operating activities (CFO) during FY24 stood at Rs 60 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -160 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 97 million, an improvement of 507% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 million from the Rs -3 million net cash flows seen during FY23.

ELGI RUBBER 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	268	60	-77.5%
Cash Flow from Investing Activities	Rs m	-287	-160	-
Cash Flow from Financing Activities	Rs m	16	97	506.6%
Net Cash Flow	Rs m	-3	-2	-

Current Valuations for ELGI RUBBER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an improvement from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.9, stands at 22.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.3 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	78.8	77.2
TTM Earnings per share	Rs	1.3	2.3
Diluted earnings per share	Rs	1.3	2.3
Price to Cash Flow	x	0.0	7.3
TTM P/E ratio	x	0.0	22.9
Price / Book Value ratio	x	1.0	1.2
Market Cap	Rs m	1,846	2,251
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ELGI RUBBER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.8x 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 1.5x during FY24, from 1.4x 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 6.1% during FY24, from 3.7% 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 13.4% during FY24, from 12.8% 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 6.9% during FY24, from 5.9% 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	0.8	0.8
Debtors’ Days	Days	62	58
Interest coverage	x	1.4	1.5
Debt to equity ratio	x	0.4	0.5
Return on assets	%	5.9	6.9
Return on equity	%	3.7	6.1
Return on capital employed	%	12.8	13.4

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

ELGI RUBBER Share Price Performance

Over the last one year, ELGI RUBBER share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.1% over the year.

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