EIMCO ELECON 2023-24 Annual Report Analysis

Mon, 3 Jun

EIMCO ELECON 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.

EIMCO ELECON Income Statement Analysis

• Operating income during the year rose 31.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 61.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.3% in FY24 as against 14.1% in FY23.
• Depreciation charges decreased by 4.3% and finance costs increased by 88.2% YoY, respectively.
• Other income grew by 110.0% YoY.
• Net profit for the year grew by 107.0% YoY.
• Net profit margins during the year grew from 11.3% in FY23 to 17.8% in FY24.

EIMCO ELECON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,727	2,275	31.7%
Other income	Rs m	91	190	110.0%
Total Revenues	Rs m	1,818	2,465	35.6%
Gross profit	Rs m	244	393	61.3%
Depreciation	Rs m	78	75	-4.3%
Interest	Rs m	5	9	88.2%
Profit before tax	Rs m	251	499	98.7%
Tax	Rs m	56	95	69.7%
Profit after tax	Rs m	195	404	107.0%
Gross profit margin	%	14.1	17.3
Effective tax rate	%	22.3	19.1
Net profit margin	%	11.3	17.8

Don't Miss: Key Information for Long-term Investors

EIMCO ELECON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 697 million as compared to Rs 398 million in FY23, thereby witnessing an increase of 74.9%.
• Current assets rose 41% and stood at Rs 2 billion, while fixed assets rose 1% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 16%.

EIMCO ELECON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,507	3,862	10.1
Current Liabilities	Rs m	398	697	74.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,960	4,614	16.5
Current assets	Rs m	1,514	2,132	40.9
Fixed Assets	Rs m	2,446	2,481	1.4
Total Assets	Rs m	3,960	4,614	16.5

EIMCO ELECON Cash Flow Statement Analysis

• EIMCO ELECON's cash flow from operating activities (CFO) during FY24 stood at Rs 116 million, an improvement of 73.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -23 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -41 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 52 million from the Rs -4 million net cash flows seen during FY23.

EIMCO ELECON 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	67	116	73.9%
Cash Flow from Investing Activities	Rs m	-47	-23	-
Cash Flow from Financing Activities	Rs m	-24	-41	-
Net Cash Flow	Rs m	-4	52	-

Current Valuations for EIMCO ELECON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 70.0, an improvement from the EPS of Rs 33.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,976.0, stands at 29.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 5.0 times.
• The company's price to cash flow (P/CF) ratio stood at 13.6 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	299.3	394.3
TTM Earnings per share	Rs	33.8	70.0
Diluted earnings per share	Rs	33.8	70.1
Price to Cash Flow	x	7.5	13.6
TTM P/E ratio	x	10.6	29.6
Price / Book Value ratio	x	0.6	1.7
Market Cap	Rs m	2,202	6,528
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for EIMCO ELECON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.1x during FY24, from 3.8x 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 54.0x during FY24, from 51.2x 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 10.5% during FY24, from 5.6% 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 13.2% during FY24, from 7.3% 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 9.0% during FY24, from 5.1% 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	3.8	3.1
Debtors’ Days	Days	1,117	1,505
Interest coverage	x	51.2	54.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.1	9.0
Return on equity	%	5.6	10.5
Return on capital employed	%	7.3	13.2

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

EIMCO ELECON Share Price Performance

Over the last one year, EIMCO ELECON share price has moved up from Rs 612.0 to Rs 1,976.0, registering a gain of Rs 1,364.0 or around 222.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,556.3 (up 5.0%). Over the last one year it has moved up from 37,501.5 to 73,556.3, a gain of 36,055 points (up 96.1%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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