EMUDHRA 2023-24 Annual Report Analysis

Wed, 29 May

EMUDHRA 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.

EMUDHRA Income Statement Analysis

• Operating income during the year fell 26.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 56.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.9% in FY24 as against 35.1% in FY23.
• Depreciation charges decreased by 2.7% and finance costs decreased by 35.0% YoY, respectively.
• Other income grew by 50.0% YoY.
• Net profit for the year declined by 66.3% YoY.
• Net profit margins during the year declined from 24.6% in FY23 to 11.3% in FY24.

EMUDHRA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,488	1,833	-26.3%
Other income	Rs m	53	80	50.0%
Total Revenues	Rs m	2,541	1,912	-24.7%
Gross profit	Rs m	873	383	-56.1%
Depreciation	Rs m	158	154	-2.7%
Interest	Rs m	34	22	-35.0%
Profit before tax	Rs m	734	286	-61.0%
Tax	Rs m	122	80	-34.1%
Profit after tax	Rs m	612	206	-66.3%
Gross profit margin	%	35.1	20.9
Effective tax rate	%	16.6	28.0
Net profit margin	%	24.6	11.3

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EMUDHRA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 349 million as compared to Rs 560 million in FY23, thereby witnessing an decrease of -37.7%.
• Current assets rose 11% and stood at Rs 3 billion, while fixed assets rose 41% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 25%.

EMUDHRA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,889	5,232	34.5
Current Liabilities	Rs m	560	349	-37.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,599	5,747	25.0
Current assets	Rs m	2,483	2,760	11.1
Fixed Assets	Rs m	2,116	2,988	41.2
Total Assets	Rs m	4,599	5,747	25.0

EMUDHRA Cash Flow Statement Analysis

• EMUDHRA's cash flow from operating activities (CFO) during FY24 stood at Rs 249 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -622 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 41% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 587 million net cash flows seen during FY23.

EMUDHRA 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	336	249	-25.9%
Cash Flow from Investing Activities	Rs m	-1,067	-622	-
Cash Flow from Financing Activities	Rs m	1,275	1,798	41.1%
Net Cash Flow	Rs m	587	1,425	142.6%

Current Valuations for EMUDHRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an decline from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 749.7, stands at 81.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.9 times, while the price to sales ratio stands at 33.9 times.
• The company's price to cash flow (P/CF) ratio stood at 124.8 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	33.2	22.1
TTM Earnings per share	Rs	8.2	2.5
Diluted earnings per share	Rs	7.4	2.5
Price to Cash Flow	x	23.2	124.8
TTM P/E ratio	x	29.2	81.3
Price / Book Value ratio	x	5.8	8.6
Market Cap	Rs m	22,740	44,971
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for EMUDHRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 7.9x during FY24, from 4.4x 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 14.0x during FY24, from 22.7x 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 3.9% during FY24, from 15.7% 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 5.9% during FY24, from 19.7% 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 4.0% during FY24, from 14.0% 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	4.4	7.9
Debtors’ Days	Days	99	93
Interest coverage	x	22.7	14.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.0	4.0
Return on equity	%	15.7	3.9
Return on capital employed	%	19.7	5.9

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

EMUDHRA Share Price Performance

Over the last one year, EMUDHRA share price has moved up from Rs 404.8 to Rs 749.7, registering a gain of Rs 344.9 or around 85.2%.

Meanwhile, the S&P BSE IT Index is trading at Rs 34,306.3 (down 0.6%). Over the last one year it has moved up from 29,175.9 to 34,306.3, a gain of 5,130 points (up 17.6%).

Overall, the S&P BSE SENSEX is up 18.7% over the year.

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