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ELIN ELECTRONICS 2023-24 Annual Report Analysis

Mon, 16 Sep

ELIN ELECTRONICS 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.

ELIN ELECTRONICS Income Statement Analysis

• Operating income during the year fell 3.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 37.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.9% in FY24 as against 6.1% in FY23.
• Depreciation charges increased by 17.4% and finance costs decreased by 37.9% YoY, respectively.
• Other income grew by 301.7% YoY.
• Net profit for the year declined by 48.2% YoY.
• Net profit margins during the year declined from 2.5% in FY23 to 1.3% in FY24.

ELIN ELECTRONICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,754	10,417	-3.1%
Other income	Rs m	23	91	301.7%
Total Revenues	Rs m	10,777	10,508	-2.5%
Gross profit	Rs m	651	405	-37.7%
Depreciation	Rs m	186	218	17.4%
Interest	Rs m	131	81	-37.9%
Profit before tax	Rs m	357	197	-44.9%
Tax	Rs m	89	58	-34.7%
Profit after tax	Rs m	268	139	-48.2%
Gross profit margin	%	6.1	3.9
Effective tax rate	%	24.9	29.5
Net profit margin	%	2.5	1.3

For Investors: Our Big Prediction

ELIN ELECTRONICS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -18.6%.
• Current assets fell 8% and stood at Rs 4 billion, while fixed assets fell 10% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 7 billion during FY23, thereby witnessing a fall of 9%.

ELIN ELECTRONICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,931	5,031	2.0
Current Liabilities	Rs m	1,896	1,544	-18.6
Long-term Debt	Rs m	396	0	-100.0
Total Liabilities	Rs m	7,342	6,692	-8.8
Current assets	Rs m	4,612	4,234	-8.2
Fixed Assets	Rs m	2,730	2,458	-10.0
Total Assets	Rs m	7,342	6,692	-8.8

ELIN ELECTRONICS Cash Flow Statement Analysis

• ELIN ELECTRONICS's cash flow from operating activities (CFO) during FY24 stood at Rs 427 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 364 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -793 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 million from the Rs -36 million net cash flows seen during FY23.

ELIN ELECTRONICS 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	623	427	-31.5%
Cash Flow from Investing Activities	Rs m	-1,967	364	-
Cash Flow from Financing Activities	Rs m	1,308	-793	-
Net Cash Flow	Rs m	-36	-2	-

Current Valuations for ELIN ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.9, an decline from the EPS of Rs 5.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 277.4, stands at 86.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 21.1 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	224.4	217.3
TTM Earnings per share	Rs	5.6	2.9
Diluted earnings per share	Rs	5.4	2.8
Price to Cash Flow	x	13.2	21.1
TTM P/E ratio	x	22.4	86.0
Price / Book Value ratio	x	1.8	1.5
Market Cap	Rs m	8,661	7,549
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for ELIN ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY24, from 2.4x 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 3.4x during FY24, from 3.7x 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 declined and down at 2.8% during FY24, from 5.4% 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 declined and down at 5.5% during FY24, from 9.2% 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 3.3% during FY24, from 5.4% 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	2.4	2.7
Debtors’ Days	Days	67	70
Interest coverage	x	3.7	3.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.4	3.3
Return on equity	%	5.4	2.8
Return on capital employed	%	9.2	5.5

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

ELIN ELECTRONICS Share Price Performance

Over the last one year, ELIN ELECTRONICS share price has moved up from Rs 165.6 to Rs 277.4, registering a gain of Rs 111.8 or around 67.5%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 67,120.0 (up 0.6%). Over the last one year it has moved up from 46,264.4 to 67,120.0, a gain of 20,856 points (up 45.1%).

Overall, the S&P BSE SENSEX is up 23.3% over the year.

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