EXIDE INDUSTRIES 2023-24 Annual Report Analysis

Fri, 5 Jul

EXIDE 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.

EXIDE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.9% in FY24 as against 10.6% in FY23.
• Depreciation charges increased by 11.7% and finance costs increased by 52.6% YoY, respectively.
• Other income declined by 27.8% YoY.
• Net profit for the year grew by 7.3% YoY.
• Net profit margins during the year declined from 5.5% in FY23 to 5.3% in FY24.

EXIDE INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	150,782	167,697	11.2%
Other income	Rs m	1,245	900	-27.8%
Total Revenues	Rs m	152,027	168,597	10.9%
Gross profit	Rs m	15,937	18,218	14.3%
Depreciation	Rs m	5,019	5,604	11.7%
Interest	Rs m	787	1,201	52.6%
Profit before tax	Rs m	11,376	12,312	8.2%
Tax	Rs m	3,148	3,484	10.7%
Profit after tax	Rs m	8,228	8,828	7.3%
Gross profit margin	%	10.6	10.9
Effective tax rate	%	27.7	28.3
Net profit margin	%	5.5	5.3

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EXIDE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 44 billion as compared to Rs 30 billion in FY23, thereby witnessing an increase of 47.1%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY23, a growth of 56.8%.
• Current assets rose 10% and stood at Rs 62 billion, while fixed assets rose 33% and stood at Rs 119 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 181 billion as against Rs 146 billion during FY23, thereby witnessing a growth of 24%.

EXIDE INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	111,323	128,863	15.8
Current Liabilities	Rs m	30,242	44,476	47.1
Long-term Debt	Rs m	1,413	2,215	56.8
Total Liabilities	Rs m	146,494	181,270	23.7
Current assets	Rs m	56,910	62,350	9.6
Fixed Assets	Rs m	89,584	118,755	32.6
Total Assets	Rs m	146,494	181,270	23.7

EXIDE INDUSTRIES Cash Flow Statement Analysis

• EXIDE INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 15 billion, an improvement of 99.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -15 billion, an improvement of 82.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 465% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -573 million net cash flows seen during FY23.

EXIDE 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	7,682	15,314	99.3%
Cash Flow from Investing Activities	Rs m	-7,988	-14,583	-
Cash Flow from Financing Activities	Rs m	-301	1,098	-
Net Cash Flow	Rs m	-573	1,912	-

Current Valuations for EXIDE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.4, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 566.2, stands at 54.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 15.7 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	177.4	197.3
TTM Earnings per share	Rs	9.7	10.4
Diluted earnings per share	Rs	9.7	10.4
Price to Cash Flow	x	11.4	15.7
TTM P/E ratio	x	18.4	54.5
Price / Book Value ratio	x	1.2	1.8
Market Cap	Rs m	137,913	226,143
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for EXIDE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.9x 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 11.2x during FY24, from 15.5x 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 6.9% during FY24, from 7.4% 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 10.3% during FY24, from 10.8% 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 5.5% during FY24, from 6.2% 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	1.9	1.4
Debtors’ Days	Days	3	3
Interest coverage	x	15.5	11.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	5.5
Return on equity	%	7.4	6.9
Return on capital employed	%	10.8	10.3

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

EXIDE INDUSTRIES Share Price Performance

Over the last one year, EXIDE INDUSTRIES share price has moved up from Rs 246.4 to Rs 566.2, registering a gain of Rs 319.8 or around 129.8%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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