EMPIRE IND. 2023-24 Annual Report Analysis

Tue, 6 Aug

EMPIRE IND. 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.

EMPIRE IND. Income Statement Analysis

• Operating income during the year fell 11.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY24 as against 11.5% in FY23.
• Depreciation charges decreased by 4.0% and finance costs decreased by 19.4% YoY, respectively.
• Other income grew by 69.7% YoY.
• Net profit for the year grew by 4.2% YoY.
• Net profit margins during the year grew from 5.2% in FY23 to 6.1% in FY24.

EMPIRE IND. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,816	6,060	-11.1%
Other income	Rs m	146	248	69.7%
Total Revenues	Rs m	6,962	6,308	-9.4%
Gross profit	Rs m	785	641	-18.3%
Depreciation	Rs m	172	165	-4.0%
Interest	Rs m	332	268	-19.4%
Profit before tax	Rs m	427	457	6.9%
Tax	Rs m	72	87	20.7%
Profit after tax	Rs m	355	370	4.2%
Gross profit margin	%	11.5	10.6
Effective tax rate	%	16.8	19.0
Net profit margin	%	5.2	6.1

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EMPIRE IND. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 14.0%.
• Long-term debt down at Rs 590 million as compared to Rs 1 billion during FY23, a fall of 43.5%.
• Current assets fell 8% and stood at Rs 4 billion, while fixed assets rose 5% and stood at Rs 4 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 2%.

EMPIRE IND. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,834	3,002	5.9
Current Liabilities	Rs m	2,194	2,502	14.0
Long-term Debt	Rs m	1,044	590	-43.5
Total Liabilities	Rs m	7,397	7,271	-1.7
Current assets	Rs m	3,978	3,673	-7.7
Fixed Assets	Rs m	3,419	3,598	5.2
Total Assets	Rs m	7,397	7,271	-1.7

EMPIRE IND. Cash Flow Statement Analysis

• EMPIRE IND.'s cash flow from operating activities (CFO) during FY24 stood at Rs 747 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -152 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -521 million, an improvement of 42% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 75 million from the Rs 192 million net cash flows seen during FY23.

EMPIRE IND. 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	790	747	-5.5%
Cash Flow from Investing Activities	Rs m	293	-152	-
Cash Flow from Financing Activities	Rs m	-892	-521	-
Net Cash Flow	Rs m	192	75	-60.9%

Current Valuations for EMPIRE IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 61.7, an improvement from the EPS of Rs 59.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,042.0, stands at 15.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.5 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	1,136.0	1,010.0
TTM Earnings per share	Rs	59.2	61.7
Diluted earnings per share	Rs	59.2	61.7
Price to Cash Flow	x	7.0	10.5
TTM P/E ratio	x	10.3	15.4
Price / Book Value ratio	x	1.5	1.9
Market Cap	Rs m	4,185	5,589
Dividends per share (Unadj.)	Rs	25.0	25.0

Ratio Analysis for EMPIRE IND.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.8x 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 2.7x during FY24, from 2.3x 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 12.3% during FY24, from 12.5% 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 20.2% during FY24, from 19.6% 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 8.8% during FY24, from 9.3% 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	1.8	1.5
Debtors’ Days	Days	1,042	985
Interest coverage	x	2.3	2.7
Debt to equity ratio	x	0.4	0.2
Return on assets	%	9.3	8.8
Return on equity	%	12.5	12.3
Return on capital employed	%	19.6	20.2

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

EMPIRE IND. Share Price Performance

Over the last one year, EMPIRE IND. share price has moved up from Rs 813.1 to Rs 1,042.0, registering a gain of Rs 229.0 or around 28.2%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

(To know more, check out historical annual results for EMPIRE IND. and quarterly results for EMPIRE IND.)