EUREKA FORBES 2023-24 Annual Report Analysis

Mon, 2 Sep

EUREKA FORBES 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.

EUREKA FORBES Income Statement Analysis

• Operating income during the year rose 5.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 74.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.4% in FY24 as against 5.0% in FY23.
• Depreciation charges decreased by 4.3% and finance costs decreased by 51.7% YoY, respectively.
• Other income declined by 14.2% YoY.
• Net profit for the year grew by 261.3% YoY.
• Net profit margins during the year grew from 1.3% in FY23 to 4.4% in FY24.

EUREKA FORBES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,845	21,893	5.0%
Other income	Rs m	102	88	-14.2%
Total Revenues	Rs m	20,947	21,980	4.9%
Gross profit	Rs m	1,050	1,835	74.8%
Depreciation	Rs m	565	540	-4.3%
Interest	Rs m	203	98	-51.7%
Profit before tax	Rs m	385	1,285	233.6%
Tax	Rs m	120	328	172.6%
Profit after tax	Rs m	265	957	261.3%
Gross profit margin	%	5.0	8.4
Effective tax rate	%	31.3	25.5
Net profit margin	%	1.3	4.4

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

EUREKA FORBES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 10 billion as compared to Rs 10 billion in FY23, thereby witnessing an decrease of -0.3%.
• Current assets rose 22% and stood at Rs 6 billion, while fixed assets fell 0% and stood at Rs 55 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 61 billion as against Rs 60 billion during FY23, thereby witnessing a growth of 2%.

EUREKA FORBES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	40,976	41,912	2.3
Current Liabilities	Rs m	9,549	9,518	-0.3
Long-term Debt	Rs m	247	0	-100.0
Total Liabilities	Rs m	60,292	61,281	1.6
Current assets	Rs m	4,968	6,073	22.3
Fixed Assets	Rs m	55,324	55,208	-0.2
Total Assets	Rs m	60,292	61,281	1.6

EUREKA FORBES Cash Flow Statement Analysis

• EUREKA FORBES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 7.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -316 million, an improvement of 20.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion, an improvement of 22% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 428 million from the Rs 8 million net cash flows seen during FY23.

EUREKA FORBES 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	1,806	1,945	7.7%
Cash Flow from Investing Activities	Rs m	-263	-316	-
Cash Flow from Financing Activities	Rs m	-1,535	-1,201	-
Net Cash Flow	Rs m	8	428	5,328.4%

Current Valuations for EUREKA FORBES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 498.8, stands at 94.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 61.6 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	107.7	113.2
TTM Earnings per share	Rs	1.4	4.9
Diluted earnings per share	Rs	1.4	4.9
Price to Cash Flow	x	99.5	61.6
TTM P/E ratio	x	311.9	94.3
Price / Book Value ratio	x	1.9	2.2
Market Cap	Rs m	79,235	92,265
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EUREKA FORBES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY24, from 0.5x 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 14.1x during FY24, from 2.9x 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 2.3% during FY24, from 0.6% 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 improved and stood at 3.3% during FY24, from 1.4% 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 1.7% during FY24, from 0.8% 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	0.5	0.6
Debtors’ Days	Days	217	229
Interest coverage	x	2.9	14.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.8	1.7
Return on equity	%	0.6	2.3
Return on capital employed	%	1.4	3.3

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

EUREKA FORBES Share Price Performance

Over the last one year, EUREKA FORBES share price has moved down from Rs 510.2 to Rs 498.8, registering a loss of Rs 11.4 or around 2.2%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 63,393.2 (down 0.3%). Over the last one year it has moved up from 44,678.3 to 63,393.2, a gain of 18,715 points (up 41.9%).

Overall, the S&P BSE SENSEX is up 27.0% over the year.

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