EXCEL INDUSTRIES 2023-24 Annual Report Analysis

Mon, 2 Sep

EXCEL 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.

EXCEL INDUSTRIES Income Statement Analysis

• Operating income during the year fell 24.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 81.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.8% in FY24 as against 11.6% in FY23.
• Depreciation charges increased by 0.2% and finance costs decreased by 11.8% YoY, respectively.
• Other income grew by 138.0% YoY.
• Net profit for the year declined by 78.7% YoY.
• Net profit margins during the year declined from 7.3% in FY23 to 2.1% in FY24.

EXCEL INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,898	8,261	-24.2%
Other income	Rs m	143	340	138.0%
Total Revenues	Rs m	11,041	8,602	-22.1%
Gross profit	Rs m	1,262	231	-81.7%
Depreciation	Rs m	314	314	0.2%
Interest	Rs m	34	30	-11.8%
Profit before tax	Rs m	1,058	227	-78.6%
Tax	Rs m	258	56	-78.2%
Profit after tax	Rs m	799	170	-78.7%
Gross profit margin	%	11.6	2.8
Effective tax rate	%	24.4	24.9
Net profit margin	%	7.3	2.1

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EXCEL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 64.6%.
• Current assets rose 16% and stood at Rs 5 billion, while fixed assets rose 22% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 20%.

EXCEL INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,417	14,271	14.9
Current Liabilities	Rs m	1,234	2,031	64.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,926	17,955	20.3
Current assets	Rs m	4,474	5,197	16.2
Fixed Assets	Rs m	10,452	12,757	22.1
Total Assets	Rs m	14,926	17,955	20.3

EXCEL INDUSTRIES Cash Flow Statement Analysis

• EXCEL INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 724 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -512 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -169 million, an improvement of 51% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 42 million from the Rs -267 million net cash flows seen during FY23.

EXCEL 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	1,253	724	-42.3%
Cash Flow from Investing Activities	Rs m	-1,175	-512	-
Cash Flow from Financing Activities	Rs m	-346	-169	-
Net Cash Flow	Rs m	-267	42	-

Current Valuations for EXCEL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.5, an decline from the EPS of Rs 63.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,508.2, stands at 43.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 22.3 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	867.0	657.2
TTM Earnings per share	Rs	63.6	13.5
Diluted earnings per share	Rs	63.6	13.5
Price to Cash Flow	x	9.0	22.3
TTM P/E ratio	x	12.5	43.8
Price / Book Value ratio	x	1.2	0.8
Market Cap	Rs m	15,411	10,788
Dividends per share (Unadj.)	Rs	11.3	5.5

Ratio Analysis for EXCEL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY24, from 3.6x 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 8.5x during FY24, from 32.1x 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 1.2% during FY24, from 6.4% 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 1.8% during FY24, from 8.8% 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 1.1% during FY24, from 5.6% 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	3.6	2.6
Debtors’ Days	Days	524	816
Interest coverage	x	32.1	8.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.6	1.1
Return on equity	%	6.4	1.2
Return on capital employed	%	8.8	1.8

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

EXCEL INDUSTRIES Share Price Performance

Over the last one year, EXCEL INDUSTRIES share price has moved up from Rs 948.7 to Rs 1,508.2, registering a gain of Rs 559.5 or around 59.0%.

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

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