EPL 2023-24 Annual Report Analysis

Thu, 1 Aug

EPL 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.

EPL Income Statement Analysis

• Operating income during the year rose 6.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.8% in FY24 as against 15.5% in FY23.
• Depreciation charges increased by 18.6% and finance costs increased by 71.5% YoY, respectively.
• Other income grew by 41.1% YoY.
• Net profit for the year declined by 8.9% YoY.
• Net profit margins during the year declined from 6.2% in FY23 to 5.4% in FY24.

EPL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	36,941	39,161	6.0%
Other income	Rs m	421	594	41.1%
Total Revenues	Rs m	37,362	39,755	6.4%
Gross profit	Rs m	5,738	6,573	14.6%
Depreciation	Rs m	2,805	3,328	18.6%
Interest	Rs m	674	1,156	71.5%
Profit before tax	Rs m	2,680	2,683	0.1%
Tax	Rs m	373	582	56.0%
Profit after tax	Rs m	2,307	2,101	-8.9%
Gross profit margin	%	15.5	16.8
Effective tax rate	%	13.9	21.7
Net profit margin	%	6.2	5.4

Don't Miss: Key Information for Long-term Investors

EPL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 12.3%.
• Long-term debt down at Rs 5 billion as compared to Rs 5 billion during FY23, a fall of 7.7%.
• Current assets rose 2% and stood at Rs 17 billion, while fixed assets rose 8% and stood at Rs 27 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 44 billion as against Rs 41 billion during FY23, thereby witnessing a growth of 6%.

EPL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	19,566	20,546	5.0
Current Liabilities	Rs m	9,956	11,182	12.3
Long-term Debt	Rs m	4,960	4,576	-7.7
Total Liabilities	Rs m	41,395	43,678	5.5
Current assets	Rs m	16,554	16,806	1.5
Fixed Assets	Rs m	24,841	26,872	8.2
Total Assets	Rs m	41,395	43,678	5.5

EPL Cash Flow Statement Analysis

• EPL's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -374 million from the Rs 520 million net cash flows seen during FY23.

EPL 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	6,018	5,865	-2.5%
Cash Flow from Investing Activities	Rs m	-3,892	-3,443	-
Cash Flow from Financing Activities	Rs m	-1,383	-2,630	-
Net Cash Flow	Rs m	520	-374	-

Current Valuations for EPL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.6, an decline from the EPS of Rs 7.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 222.9, stands at 34.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.5 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	116.1	123.0
TTM Earnings per share	Rs	7.2	6.6
Diluted earnings per share	Rs	7.2	6.6
Price to Cash Flow	x	10.1	11.5
TTM P/E ratio	x	22.1	34.3
Price / Book Value ratio	x	2.8	3.0
Market Cap	Rs m	54,812	62,402
Dividends per share (Unadj.)	Rs	4.3	4.5

Ratio Analysis for EPL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 3.3x during FY24, from 5.0x 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 10.2% during FY24, from 11.8% 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 15.3% during FY24, from 13.7% 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 improved and stood at 7.5% during FY24, from 7.2% 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	1.5
Debtors’ Days	Days	64	65
Interest coverage	x	5.0	3.3
Debt to equity ratio	x	0.3	0.2
Return on assets	%	7.2	7.5
Return on equity	%	11.8	10.2
Return on capital employed	%	13.7	15.3

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

EPL Share Price Performance

Over the last one year, EPL share price has moved down from Rs 226.8 to Rs 222.9, registering a loss of Rs 3.9 or around 1.7%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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