ENDURANCE TECHNOLOGIES 2023-24 Annual Report Analysis

Mon, 29 Jul

ENDURANCE TECHNOLOGIES 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.

ENDURANCE TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 16.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.0% in FY24 as against 11.7% in FY23.
• Depreciation charges increased by 12.4% and finance costs increased by 107.3% YoY, respectively.
• Other income grew by 88.5% YoY.
• Net profit for the year grew by 41.9% YoY.
• Net profit margins during the year grew from 5.4% in FY23 to 6.6% in FY24.

ENDURANCE TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	88,040	102,409	16.3%
Other income	Rs m	454	856	88.5%
Total Revenues	Rs m	88,495	103,265	16.7%
Gross profit	Rs m	10,260	13,280	29.4%
Depreciation	Rs m	4,216	4,740	12.4%
Interest	Rs m	206	427	107.3%
Profit before tax	Rs m	6,293	8,969	42.5%
Tax	Rs m	1,497	2,165	44.6%
Profit after tax	Rs m	4,796	6,805	41.9%
Gross profit margin	%	11.7	13.0
Effective tax rate	%	23.8	24.1
Net profit margin	%	5.4	6.6

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ENDURANCE TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 22 billion as compared to Rs 19 billion in FY23, thereby witnessing an increase of 15.9%.
• Long-term debt stood at Rs 5 billion as compared to Rs 3 billion during FY23, a growth of 72.7%.
• Current assets rose 18% and stood at Rs 38 billion, while fixed assets rose 14% and stood at Rs 40 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 78 billion as against Rs 67 billion during FY23, thereby witnessing a growth of 16%.

ENDURANCE TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	44,121	49,774	12.8
Current Liabilities	Rs m	19,307	22,374	15.9
Long-term Debt	Rs m	2,781	4,803	72.7
Total Liabilities	Rs m	67,305	78,074	16.0
Current assets	Rs m	31,919	37,794	18.4
Fixed Assets	Rs m	35,386	40,175	13.5
Total Assets	Rs m	67,305	78,074	16.0

ENDURANCE TECHNOLOGIES Cash Flow Statement Analysis

• ENDURANCE TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 11 billion, an improvement of 22.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -9 billion, an improvement of 3.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 246% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -1 billion net cash flows seen during FY23.

ENDURANCE TECHNOLOGIES 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	8,620	10,571	22.6%
Cash Flow from Investing Activities	Rs m	-9,147	-9,452	-
Cash Flow from Financing Activities	Rs m	-719	1,051	-
Net Cash Flow	Rs m	-1,246	2,170	-

Current Valuations for ENDURANCE TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.4, an improvement from the EPS of Rs 34.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,562.9, stands at 53.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 21.5 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	625.9	728.1
TTM Earnings per share	Rs	34.1	48.4
Diluted earnings per share	Rs	34.1	48.4
Price to Cash Flow	x	19.4	21.5
TTM P/E ratio	x	36.4	53.0
Price / Book Value ratio	x	4.2	5.0
Market Cap	Rs m	185,911	248,312
Dividends per share (Unadj.)	Rs	7.0	8.5

Ratio Analysis for ENDURANCE TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.7x 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 22.0x during FY24, from 31.6x 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 13.7% during FY24, from 10.9% 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 17.2% during FY24, from 13.9% 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 9.3% during FY24, from 7.4% 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	1.7	1.7
Debtors’ Days	Days	48	45
Interest coverage	x	31.6	22.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	7.4	9.3
Return on equity	%	10.9	13.7
Return on capital employed	%	13.9	17.2

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

ENDURANCE TECHNOLOGIES Share Price Performance

Over the last one year, ENDURANCE TECHNOLOGIES share price has moved up from Rs 1,638.4 to Rs 2,562.9, registering a gain of Rs 924.5 or around 56.4%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

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