ELECTROTHERM 2023-24 Annual Report Analysis

Thu, 22 Aug

ELECTROTHERM 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.

ELECTROTHERM Income Statement Analysis

• Operating income during the year rose 39.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 328.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.8% in FY24 as against 3.2% in FY23.
• Depreciation charges decreased by 5.1% and finance costs decreased by 10.5% YoY, respectively.
• Other income declined by 30.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.4% in FY23 to 7.4% in FY24.

ELECTROTHERM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	30,741	42,715	39.0%
Other income	Rs m	67	47	-30.5%
Total Revenues	Rs m	30,807	42,762	38.8%
Gross profit	Rs m	979	4,195	328.7%
Depreciation	Rs m	492	467	-5.1%
Interest	Rs m	672	601	-10.5%
Profit before tax	Rs m	-118	3,173	NA
Tax	Rs m	0	0	-100.0%
Profit after tax	Rs m	-118	3,173	NA
Gross profit margin	%	3.2	9.8
Effective tax rate	%	-0.1	0.0
Net profit margin	%	-0.4	7.4

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ELECTROTHERM Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 20 billion as compared to Rs 26 billion in FY23, thereby witnessing an decrease of -22.9%.
• Long-term debt stood at Rs 6 billion as compared to Rs 2 billion during FY23, a growth of 147.7%.
• Current assets rose 6% and stood at Rs 11 billion, while fixed assets rose 3% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 18 billion during FY23, thereby witnessing a growth of 5%.

ELECTROTHERM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-10,962	-7,811	NA
Current Liabilities	Rs m	25,819	19,912	-22.9
Long-term Debt	Rs m	2,449	6,066	147.7
Total Liabilities	Rs m	17,521	18,413	5.1
Current assets	Rs m	10,379	11,022	6.2
Fixed Assets	Rs m	7,143	7,390	3.5
Total Assets	Rs m	17,521	18,413	5.1

ELECTROTHERM Cash Flow Statement Analysis

• ELECTROTHERM's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 228.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -679 million, an improvement of 2,636.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -108 million from the Rs 16 million net cash flows seen during FY23.

ELECTROTHERM 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	1,071	3,513	228.1%
Cash Flow from Investing Activities	Rs m	-25	-679	-
Cash Flow from Financing Activities	Rs m	-1,030	-2,943	-
Net Cash Flow	Rs m	16	-108	-

Current Valuations for ELECTROTHERM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 249.1, an improvement from the EPS of Rs -9.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 999.6, stands at 3.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.6 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 1.1 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	2,412.9	3,352.8
TTM Earnings per share	Rs	-9.3	249.1
Diluted earnings per share	Rs	-9.3	249.0
Price to Cash Flow	x	1.9	1.1
TTM P/E ratio	x	-6.0	3.3
Price / Book Value ratio	x	-0.1	-0.5
Market Cap	Rs m	1,161	4,113
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ELECTROTHERM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY24, from 0.4x 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 improved and stood at 6.3x during FY24, from 0.8x 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 -40.6% during FY24, from 1.1% 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 -216.3% during FY24, from -6.5% 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 20.5% during FY24, from 3.2% 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	0.4	0.6
Debtors’ Days	Days	2	2
Interest coverage	x	0.8	6.3
Debt to equity ratio	x	-0.2	-0.8
Return on assets	%	3.2	20.5
Return on equity	%	1.1	-40.6
Return on capital employed	%	-6.5	-216.3

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

ELECTROTHERM Share Price Performance

Over the last one year, ELECTROTHERM share price has moved up from Rs 117.0 to Rs 999.6, registering a gain of Rs 882.6 or around 754.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,275.6 (up 0.2%). Over the last one year it has moved up from 44,186.9 to 73,275.6, a gain of 29,089 points (up 65.8%).

Overall, the S&P BSE SENSEX is up 24.3% over the year.

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