FLAIR WRITING INDUSTRIES LTD. 2023-24 Annual Report Analysis

Mon, 5 Aug

FLAIR WRITING INDUSTRIES LTD. 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.

FLAIR WRITING INDUSTRIES LTD. Income Statement Analysis

• Operating income during the year rose 3.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.6% in FY24 as against 19.5% in FY23.
• Depreciation charges increased by 34.6% and finance costs increased by 5.0% YoY, respectively.
• Other income grew by 24.9% YoY.
• Net profit for the year grew by 1.2% YoY.
• Net profit margins during the year declined from 12.4% in FY23 to 12.1% in FY24.

FLAIR WRITING INDUSTRIES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,427	9,787	3.8%
Other income	Rs m	116	145	24.9%
Total Revenues	Rs m	9,543	9,933	4.1%
Gross profit	Rs m	1,837	1,918	4.4%
Depreciation	Rs m	273	368	34.6%
Interest	Rs m	102	107	5.0%
Profit before tax	Rs m	1,578	1,588	0.6%
Tax	Rs m	408	403	-1.1%
Profit after tax	Rs m	1,170	1,185	1.2%
Gross profit margin	%	19.5	19.6
Effective tax rate	%	25.8	25.4
Net profit margin	%	12.4	12.1

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

FLAIR WRITING INDUSTRIES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -23.5%.
• Long-term debt down at Rs 307 million as compared to Rs 418 million during FY23, a fall of 26.6%.
• Current assets rose 74% and stood at Rs 7 billion, while fixed assets rose 44% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 62%.

FLAIR WRITING INDUSTRIES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,350	8,989	106.7
Current Liabilities	Rs m	1,842	1,409	-23.5
Long-term Debt	Rs m	418	307	-26.6
Total Liabilities	Rs m	6,842	11,078	61.9
Current assets	Rs m	4,106	7,153	74.2
Fixed Assets	Rs m	2,736	3,926	43.5
Total Assets	Rs m	6,842	11,078	61.9

FLAIR WRITING INDUSTRIES LTD. Cash Flow Statement Analysis

• FLAIR WRITING INDUSTRIES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 776 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 287.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 1,186% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 512 million from the Rs 5 million net cash flows seen during FY23.

FLAIR WRITING INDUSTRIES LTD. 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	979	776	-20.7%
Cash Flow from Investing Activities	Rs m	-736	-2,852	-
Cash Flow from Financing Activities	Rs m	-238	2,588	-
Net Cash Flow	Rs m	5	512	11,007.2%

Current Valuations for FLAIR WRITING INDUSTRIES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.2, an decline from the EPS of Rs 12.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 306.0, stands at 27.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 3.3 times.
• The company's price to cash flow (P/CF) ratio stood at 25.8 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	100.9	92.9
TTM Earnings per share	Rs	12.5	11.2
Diluted earnings per share	Rs	11.1	11.2
Price to Cash Flow	x	0.0	25.8
TTM P/E ratio	x	0.0	27.2
Price / Book Value ratio	x	0.0	4.5
Market Cap	Rs m	0	40,103
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for FLAIR WRITING INDUSTRIES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.1x during FY24, from 2.2x 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 15.9x during FY24, from 16.5x 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 13.2% during FY24, from 26.9% 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 18.2% during FY24, from 35.2% 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 11.7% during FY24, from 18.6% 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	2.2	5.1
Debtors’ Days	Days	66	80
Interest coverage	x	16.5	15.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	18.6	11.7
Return on equity	%	26.9	13.2
Return on capital employed	%	35.2	18.2

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

FLAIR WRITING INDUSTRIES LTD. Share Price Performance

Over the last one year, FLAIR WRITING INDUSTRIES LTD. share price has moved up from Rs 0.0 to Rs 306.0, registering a gain of Rs 306.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 18.5% over the year.

(To know more, check out historical annual results for FLAIR WRITING INDUSTRIES LTD. and quarterly results for FLAIR WRITING INDUSTRIES LTD.)