FIEM INDUSTRIES 2023-24 Annual Report Analysis

Thu, 11 Jul

FIEM 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.

FIEM INDUSTRIES Income Statement Analysis

• Operating income during the year rose 9.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY24 as against 13.5% in FY23.
• Depreciation charges decreased by 8.4% and finance costs decreased by 60.5% YoY, respectively.
• Other income grew by 47.8% YoY.
• Net profit for the year grew by 18.6% YoY.
• Net profit margins during the year grew from 7.6% in FY23 to 8.2% in FY24.

FIEM INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,481	20,278	9.7%
Other income	Rs m	108	160	47.8%
Total Revenues	Rs m	18,589	20,438	9.9%
Gross profit	Rs m	2,486	2,680	7.8%
Depreciation	Rs m	634	581	-8.4%
Interest	Rs m	74	29	-60.5%
Profit before tax	Rs m	1,886	2,229	18.2%
Tax	Rs m	487	571	17.1%
Profit after tax	Rs m	1,399	1,658	18.6%
Gross profit margin	%	13.5	13.2
Effective tax rate	%	25.8	25.6
Net profit margin	%	7.6	8.2

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FIEM INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 19.7%.
• Current assets rose 30% and stood at Rs 7 billion, while fixed assets rose 1% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 15%.

FIEM INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,612	8,854	16.3
Current Liabilities	Rs m	2,334	2,793	19.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	10,530	12,140	15.3
Current assets	Rs m	5,320	6,903	29.8
Fixed Assets	Rs m	5,210	5,237	0.5
Total Assets	Rs m	10,530	12,140	15.3

FIEM INDUSTRIES Cash Flow Statement Analysis

• FIEM INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 3.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -679 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -431 million, an improvement of 22% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 239 million from the Rs 1 billion net cash flows seen during FY23.

FIEM 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	1,309	1,349	3.0%
Cash Flow from Investing Activities	Rs m	385	-679	-
Cash Flow from Financing Activities	Rs m	-550	-431	-
Net Cash Flow	Rs m	1,147	239	-79.2%

Current Valuations for FIEM INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.0, an decline from the EPS of Rs 106.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,375.1, stands at 21.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.7 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	1,404.3	770.5
TTM Earnings per share	Rs	106.3	63.0
Diluted earnings per share	Rs	53.1	63.0
Price to Cash Flow	x	10.1	18.7
TTM P/E ratio	x	14.7	21.8
Price / Book Value ratio	x	2.5	4.7
Market Cap	Rs m	18,980	41,842
Dividends per share (Unadj.)	Rs	30.0	20.0

Ratio Analysis for FIEM INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.3x 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 76.9x during FY24, from 26.4x 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 improved and stood at 18.7% during FY24, from 18.4% 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 25.5% during FY24, from 25.8% 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 13.9% during FY24, from 14.0% 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	2.3	2.5
Debtors’ Days	Days	278	349
Interest coverage	x	26.4	76.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.0	13.9
Return on equity	%	18.4	18.7
Return on capital employed	%	25.8	25.5

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

FIEM INDUSTRIES Share Price Performance

Over the last one year, FIEM INDUSTRIES share price has moved up from Rs 915.4 to Rs 1,375.1, registering a gain of Rs 459.7 or around 50.2%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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