EVEREST INDUSTRIES 2023-24 Annual Report Analysis

Tue, 23 Jul

EVEREST 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.

EVEREST INDUSTRIES Income Statement Analysis

• Operating income during the year fell 4.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 28.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.1% in FY24 as against 4.1% in FY23.
• Depreciation charges decreased by 4.2% and finance costs decreased by 59.5% YoY, respectively.
• Other income declined by 56.3% YoY.
• Net profit for the year declined by 57.5% YoY.
• Net profit margins during the year declined from 2.6% in FY23 to 1.1% in FY24.

EVEREST INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,476	15,755	-4.4%
Other income	Rs m	406	177	-56.3%
Total Revenues	Rs m	16,882	15,932	-5.6%
Gross profit	Rs m	675	486	-28.1%
Depreciation	Rs m	338	324	-4.2%
Interest	Rs m	315	128	-59.5%
Profit before tax	Rs m	428	212	-50.5%
Tax	Rs m	5	32	567.4%
Profit after tax	Rs m	424	180	-57.5%
Gross profit margin	%	4.1	3.1
Effective tax rate	%	1.1	15.1
Net profit margin	%	2.6	1.1

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EVEREST INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 1.2%.
• Long-term debt stood at Rs 449 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 6% and stood at Rs 7 billion, while fixed assets rose 2% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 1%.

EVEREST INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,777	5,909	2.3
Current Liabilities	Rs m	5,131	5,191	1.2
Long-term Debt	Rs m	0	449	0.0
Total Liabilities	Rs m	12,591	12,696	0.8
Current assets	Rs m	7,178	6,775	-5.6
Fixed Assets	Rs m	5,411	5,541	2.4
Total Assets	Rs m	12,591	12,696	0.8

EVEREST INDUSTRIES Cash Flow Statement Analysis

• EVEREST INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -932 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -388 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 505 million from the Rs -854 million net cash flows seen during FY23.

EVEREST 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	-1,682	1,825	-
Cash Flow from Investing Activities	Rs m	403	-932	-
Cash Flow from Financing Activities	Rs m	425	-388	-
Net Cash Flow	Rs m	-854	505	-

Current Valuations for EVEREST INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.4, an decline from the EPS of Rs 26.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,157.0, stands at 101.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 34.4 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	1,046.8	997.8
TTM Earnings per share	Rs	26.9	11.4
Diluted earnings per share	Rs	26.8	11.4
Price to Cash Flow	x	15.6	34.4
TTM P/E ratio	x	28.1	101.5
Price / Book Value ratio	x	2.0	2.9
Market Cap	Rs m	11,648	17,305
Dividends per share (Unadj.)	Rs	6.0	2.5

Ratio Analysis for EVEREST INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.4x 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 improved and stood at 2.7x during FY24, from 2.4x 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 3.0% during FY24, from 7.3% 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 5.3% during FY24, from 12.9% 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 declined and down at 2.4% during FY24, from 5.9% 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	1.4	1.3
Debtors’ Days	Days	233	220
Interest coverage	x	2.4	2.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.9	2.4
Return on equity	%	7.3	3.0
Return on capital employed	%	12.9	5.3

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

EVEREST INDUSTRIES Share Price Performance

Over the last one year, EVEREST INDUSTRIES share price has moved up from Rs 856.7 to Rs 1,157.0, registering a gain of Rs 300.3 or around 35.1%.

Overall, the S&P BSE SENSEX is up 19.8% over the year.

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