ELDECO HOUS. 2023-24 Annual Report Analysis

Wed, 18 Sep

ELDECO HOUS. 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.

ELDECO HOUS. Income Statement Analysis

• Operating income during the year fell 12.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 20.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 35.0% in FY24 as against 38.5% in FY23.
• Depreciation charges increased by 16.8% and finance costs increased by 1355.5% YoY, respectively.
• Other income declined by 16.9% YoY.
• Net profit for the year declined by 23.7% YoY.
• Net profit margins during the year declined from 34.4% in FY23 to 30.1% in FY24.

ELDECO HOUS. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,291	1,126	-12.8%
Other income	Rs m	115	96	-16.9%
Total Revenues	Rs m	1,406	1,222	-13.1%
Gross profit	Rs m	497	394	-20.7%
Depreciation	Rs m	7	8	16.8%
Interest	Rs m	2	29	1,355.5%
Profit before tax	Rs m	603	453	-24.9%
Tax	Rs m	160	114	-28.4%
Profit after tax	Rs m	444	339	-23.7%
Gross profit margin	%	38.5	35.0
Effective tax rate	%	26.5	25.2
Net profit margin	%	34.4	30.1

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ELDECO HOUS. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 13.6%.
• Long-term debt stood at Rs 819 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 26% and stood at Rs 6 billion, while fixed assets rose 14% and stood at Rs 884 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 24%.

ELDECO HOUS. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,445	3,706	7.6
Current Liabilities	Rs m	2,077	2,359	13.6
Long-term Debt	Rs m	0	819	0.0
Total Liabilities	Rs m	5,564	6,922	24.4
Current assets	Rs m	4,787	6,038	26.1
Fixed Assets	Rs m	777	884	13.8
Total Assets	Rs m	5,564	6,922	24.4

ELDECO HOUS. Cash Flow Statement Analysis

• ELDECO HOUS.'s cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 77 million, an improvement of 50.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 704 million, an improvement of 912% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -335 million from the Rs 168 million net cash flows seen during FY23.

ELDECO HOUS. 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	204	-1,116	-
Cash Flow from Investing Activities	Rs m	51	77	50.4%
Cash Flow from Financing Activities	Rs m	-87	704	-
Net Cash Flow	Rs m	168	-335	-

Current Valuations for ELDECO HOUS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.4, an decline from the EPS of Rs 45.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 962.1, stands at 27.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 8.4 times.
• The company's price to cash flow (P/CF) ratio stood at 20.4 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	131.4	114.6
TTM Earnings per share	Rs	45.1	34.4
Diluted earnings per share	Rs	45.1	34.4
Price to Cash Flow	x	12.5	20.4
TTM P/E ratio	x	12.7	27.6
Price / Book Value ratio	x	1.9	1.9
Market Cap	Rs m	6,388	7,086
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for ELDECO HOUS.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 2.3x 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 16.6x during FY24, from 302.6x 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 9.1% during FY24, from 12.9% 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 10.7% during FY24, from 17.6% 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 5.3% during FY24, from 8.0% 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	2.3	2.6
Debtors’ Days	Days	64	107
Interest coverage	x	302.6	16.6
Debt to equity ratio	x	0.0	0.2
Return on assets	%	8.0	5.3
Return on equity	%	12.9	9.1
Return on capital employed	%	17.6	10.7

To see how ELDECO HOUS. has performed over the last 5 years, please visit here.

ELDECO HOUS. Share Price Performance

Over the last one year, ELDECO HOUS. share price has moved up from Rs 707.5 to Rs 962.1, registering a gain of Rs 254.6 or around 36.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,319.1 (down 0.1%). Over the last one year it has moved up from 4,633.6 to 8,319.1, a gain of 3,685 points (up 79.5%).

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for ELDECO HOUS. and quarterly results for ELDECO HOUS.)