EVEREADY INDUSTRIES 2023-24 Annual Report Analysis

Tue, 16 Jul

EVEREADY 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.

EVEREADY INDUSTRIES Income Statement Analysis

• Operating income during the year fell 1.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 25.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.5% in FY24 as against 8.3% in FY23.
• Depreciation charges increased by 10.5% and finance costs decreased by 42.9% YoY, respectively.
• Other income declined by 45.3% YoY.
• Net profit for the year grew by 141.7% YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 5.1% in FY24.

EVEREADY INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	13,277	13,143	-1.0%
Other income	Rs m	86	47	-45.3%
Total Revenues	Rs m	13,363	13,190	-1.3%
Gross profit	Rs m	1,101	1,385	25.8%
Depreciation	Rs m	274	303	10.5%
Interest	Rs m	566	323	-42.9%
Profit before tax	Rs m	347	806	132.7%
Tax	Rs m	70	139	97.3%
Profit after tax	Rs m	276	668	141.7%
Gross profit margin	%	8.3	10.5
Effective tax rate	%	20.3	17.2
Net profit margin	%	2.1	5.1

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EVEREADY INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -3.0%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 31.0%.
• Current assets rose 3% and stood at Rs 5 billion, while fixed assets fell 16% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 9 billion during FY23, thereby witnessing a fall of 6%.

EVEREADY INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,194	3,867	21.1
Current Liabilities	Rs m	4,293	4,164	-3.0
Long-term Debt	Rs m	2,080	1,435	-31.0
Total Liabilities	Rs m	8,816	8,265	-6.3
Current assets	Rs m	4,631	4,755	2.7
Fixed Assets	Rs m	4,185	3,510	-16.1
Total Assets	Rs m	8,816	8,265	-6.3

EVEREADY INDUSTRIES Cash Flow Statement Analysis

• EVEREADY INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 320.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -229 million, an improvement of 17.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 42 million from the Rs -415 million net cash flows seen during FY23.

EVEREADY 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	366	1,539	320.7%
Cash Flow from Investing Activities	Rs m	-194	-229	-
Cash Flow from Financing Activities	Rs m	-591	-1,268	-
Net Cash Flow	Rs m	-415	42	-

Current Valuations for EVEREADY INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.2, an improvement from the EPS of Rs 3.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 380.0, stands at 41.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.1 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 27.3 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	182.7	180.8
TTM Earnings per share	Rs	3.8	9.2
Diluted earnings per share	Rs	3.8	9.2
Price to Cash Flow	x	38.2	27.3
TTM P/E ratio	x	76.0	41.4
Price / Book Value ratio	x	7.5	6.8
Market Cap	Rs m	24,023	26,464
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for EVEREADY INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.1x 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 3.5x during FY24, from 1.6x 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 17.3% during FY24, from 8.6% 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 21.3% during FY24, from 17.3% 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 12.0% during FY24, from 9.6% 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	1.1	1.1
Debtors’ Days	Days	281	315
Interest coverage	x	1.6	3.5
Debt to equity ratio	x	0.7	0.4
Return on assets	%	9.6	12.0
Return on equity	%	8.6	17.3
Return on capital employed	%	17.3	21.3

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

EVEREADY INDUSTRIES Share Price Performance

Over the last one year, EVEREADY INDUSTRIES share price has moved up from Rs 342.6 to Rs 380.0, registering a gain of Rs 37.4 or around 10.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 59,258.7 (up 0.2%). Over the last one year it has moved up from 42,805.6 to 59,258.7, a gain of 16,453 points (up 38.4%).

Overall, the S&P BSE SENSEX is up 23.5% over the year.

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