ESTER INDUSTRIES 2023-24 Annual Report Analysis

Tue, 29 Oct

ESTER INDUSTRIES 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.

ESTER INDUSTRIES Income Statement Analysis

• Operating income during the year fell 4.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 2.2% in FY24 as against 8.2% in FY23.
• Depreciation charges increased by 54.9% and finance costs increased by 93.7% YoY, respectively.
• Other income grew by 117.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.0% in FY23 to 11.4% in FY24.

ESTER INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,141	10,634	-4.5%
Other income	Rs m	124	270	117.6%
Total Revenues	Rs m	11,266	10,905	-3.2%
Gross profit	Rs m	918	-236	NA
Depreciation	Rs m	439	680	54.9%
Interest	Rs m	363	704	93.7%
Profit before tax	Rs m	239	-1,350	NA
Tax	Rs m	122	-140	NA
Profit after tax	Rs m	117	-1,210	NA
Gross profit margin	%	8.2	-2.2
Effective tax rate	%	51.2	10.3
Net profit margin	%	1.0	-11.4

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ESTER INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 49.8%.
• Long-term debt down at Rs 4 billion as compared to Rs 5 billion during FY23, a fall of 18.5%.
• Current assets rose 11% and stood at Rs 7 billion, while fixed assets fell 10% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 20 billion during FY23, thereby witnessing a fall of 3%.

ESTER INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,423	7,161	-3.5
Current Liabilities	Rs m	4,096	6,136	49.8
Long-term Debt	Rs m	5,381	4,385	-18.5
Total Liabilities	Rs m	19,745	19,082	-3.4
Current assets	Rs m	6,574	7,276	10.7
Fixed Assets	Rs m	13,171	11,806	-10.4
Total Assets	Rs m	19,745	19,082	-3.4

ESTER INDUSTRIES Cash Flow Statement Analysis

• ESTER INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 438 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 417 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -139 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 716 million from the Rs -278 million net cash flows seen during FY23.

ESTER INDUSTRIES 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	577	438	-24.2%
Cash Flow from Investing Activities	Rs m	-1,993	417	-
Cash Flow from Financing Activities	Rs m	1,138	-139	-
Net Cash Flow	Rs m	-278	716	-

Current Valuations for ESTER INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.9, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 148.6, stands at -12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at -19.1 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	133.6	113.2
TTM Earnings per share	Rs	1.4	-12.9
Diluted earnings per share	Rs	1.2	-12.9
Price to Cash Flow	x	14.7	-19.1
TTM P/E ratio	x	73.2	-12.1
Price / Book Value ratio	x	1.5	1.4
Market Cap	Rs m	11,354	10,108
Dividends per share (Unadj.)	Rs	0.5	0.0

Ratio Analysis for ESTER INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.6x 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 -0.9x during FY24, from 1.7x 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 -16.9% during FY24, from 1.6% 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 declined and down at -5.6% during FY24, from 4.7% 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 -2.7% during FY24, from 2.4% 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	1.6	1.2
Debtors’ Days	Days	496	506
Interest coverage	x	1.7	-0.9
Debt to equity ratio	x	0.7	0.6
Return on assets	%	2.4	-2.7
Return on equity	%	1.6	-16.9
Return on capital employed	%	4.7	-5.6

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

ESTER INDUSTRIES Share Price Performance

Over the last one year, ESTER INDUSTRIES share price has moved up from Rs 90.6 to Rs 148.6, registering a gain of Rs 57.9 or around 63.9%.

Overall, the S&P BSE SENSEX is up 24.2% over the year.

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