ESAB INDIA 2023-24 Annual Report Analysis

Wed, 17 Jul

ESAB INDIA 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.

ESAB INDIA Income Statement Analysis

• Operating income during the year rose 14.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.1% in FY24 as against 16.9% in FY23.
• Depreciation charges increased by 16.1% increased by 0.0% YoY, respectively.
• Other income declined by 16.8% YoY.
• Net profit for the year grew by 20.1% YoY.
• Net profit margins during the year grew from 12.3% in FY23 to 12.9% in FY24.

ESAB INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,044	12,594	14.0%
Other income	Rs m	78	65	-16.8%
Total Revenues	Rs m	11,122	12,659	13.8%
Gross profit	Rs m	1,869	2,278	21.9%
Depreciation	Rs m	119	138	16.1%
Interest	Rs m	5	5	0.0%
Profit before tax	Rs m	1,823	2,200	20.7%
Tax	Rs m	466	570	22.2%
Profit after tax	Rs m	1,357	1,630	20.1%
Gross profit margin	%	16.9	18.1
Effective tax rate	%	25.6	25.9
Net profit margin	%	12.3	12.9

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ESAB INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 15.0%.
• Current assets rose 17% and stood at Rs 4 billion, while fixed assets rose 15% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 16%.

ESAB INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,603	3,061	17.6
Current Liabilities	Rs m	2,036	2,342	15.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,729	5,490	16.1
Current assets	Rs m	3,491	4,067	16.5
Fixed Assets	Rs m	1,218	1,402	15.2
Total Assets	Rs m	4,729	5,490	16.1

ESAB INDIA Cash Flow Statement Analysis

• ESAB INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 9.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -550 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -811 million, an improvement of 34% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 49 million from the Rs 122 million net cash flows seen during FY23.

ESAB INDIA 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	1,292	1,410	9.1%
Cash Flow from Investing Activities	Rs m	52	-550	-
Cash Flow from Financing Activities	Rs m	-1,222	-811	-
Net Cash Flow	Rs m	122	49	-59.8%

Current Valuations for ESAB INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 105.9, an improvement from the EPS of Rs 88.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,319.7, stands at 59.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 31.8 times, while the price to sales ratio stands at 7.7 times.
• The company's price to cash flow (P/CF) ratio stood at 42.5 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	717.6	818.3
TTM Earnings per share	Rs	88.2	105.9
Diluted earnings per share	Rs	88.1	105.9
Price to Cash Flow	x	36.9	42.5
TTM P/E ratio	x	40.1	59.7
Price / Book Value ratio	x	21.7	24.6
Market Cap	Rs m	56,358	75,149
Dividends per share (Unadj.)	Rs	78.0	86.0

Ratio Analysis for ESAB INDIA

• 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 improved and stood at 440.9x during FY24, from 365.6x 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 53.3% during FY24, from 52.1% 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 improved and stood at 72.0% during FY24, from 70.2% 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 29.8% during FY24, from 28.8% 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	503	547
Interest coverage	x	365.6	440.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	28.8	29.8
Return on equity	%	52.1	53.3
Return on capital employed	%	70.2	72.0

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

ESAB INDIA Share Price Performance

Over the last one year, ESAB INDIA share price has moved up from Rs 4,410.7 to Rs 6,319.7, registering a gain of Rs 1,909.0 or around 43.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,460.1 (down 0.5%). Over the last one year it has moved up from 41,426.7 to 74,460.1, a gain of 33,033 points (up 79.7%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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