FINE ORGANIC INDUSTRIES 2023-24 Annual Report Analysis

Mon, 29 Jul

FINE ORGANIC 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.

FINE ORGANIC INDUSTRIES Income Statement Analysis

• Operating income during the year fell 29.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 36.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 25.0% in FY24 as against 27.4% in FY23.
• Depreciation charges increased by 17.2% and finance costs decreased by 46.7% YoY, respectively.
• Other income grew by 12.0% YoY.
• Net profit for the year declined by 33.4% YoY.
• Net profit margins during the year declined from 20.4% in FY23 to 19.4% in FY24.

FINE ORGANIC INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	30,231	21,230	-29.8%
Other income	Rs m	642	719	12.0%
Total Revenues	Rs m	30,872	21,948	-28.9%
Gross profit	Rs m	8,293	5,308	-36.0%
Depreciation	Rs m	479	561	17.2%
Interest	Rs m	46	24	-46.7%
Profit before tax	Rs m	8,410	5,441	-35.3%
Tax	Rs m	2,229	1,322	-40.7%
Profit after tax	Rs m	6,181	4,119	-33.4%
Gross profit margin	%	27.4	25.0
Effective tax rate	%	26.5	24.3
Net profit margin	%	20.4	19.4

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FINE ORGANIC INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -30.4%.
• Current assets rose 18% and stood at Rs 17 billion, while fixed assets rose 9% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 18 billion during FY23, thereby witnessing a growth of 17%.

FINE ORGANIC INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,412	19,210	24.6
Current Liabilities	Rs m	2,645	1,843	-30.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,959	20,945	16.6
Current assets	Rs m	14,198	16,822	18.5
Fixed Assets	Rs m	3,761	4,105	9.1
Total Assets	Rs m	17,959	20,945	16.6

FINE ORGANIC INDUSTRIES Cash Flow Statement Analysis

• FINE ORGANIC INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 30.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 361.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -585 million, an improvement of 15% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 3 billion net cash flows seen during FY23.

FINE ORGANIC 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	4,853	6,345	30.7%
Cash Flow from Investing Activities	Rs m	-847	-3,906	-
Cash Flow from Financing Activities	Rs m	-687	-585	-
Net Cash Flow	Rs m	2,892	1,802	-37.7%

Current Valuations for FINE ORGANIC INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 134.3, an decline from the EPS of Rs 201.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,377.0, stands at 39.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 7.8 times.
• The company's price to cash flow (P/CF) ratio stood at 30.0 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	986.0	692.4
TTM Earnings per share	Rs	201.6	134.3
Diluted earnings per share	Rs	201.6	134.3
Price to Cash Flow	x	19.8	30.0
TTM P/E ratio	x	21.3	39.8
Price / Book Value ratio	x	11.2	7.3
Market Cap	Rs m	173,194	140,499
Dividends per share (Unadj.)	Rs	9.0	10.0

Ratio Analysis for FINE ORGANIC INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 9.1x during FY24, from 5.4x 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 224.6x during FY24, from 185.1x 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 21.4% during FY24, from 40.1% 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 28.5% during FY24, from 54.9% 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 19.8% during FY24, from 34.7% 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	5.4	9.1
Debtors’ Days	Days	423	535
Interest coverage	x	185.1	224.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	34.7	19.8
Return on equity	%	40.1	21.4
Return on capital employed	%	54.9	28.5

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

FINE ORGANIC INDUSTRIES Share Price Performance

Over the last one year, FINE ORGANIC INDUSTRIES share price has moved up from Rs 4,476.3 to Rs 5,377.0, registering a gain of Rs 900.7 or around 20.1%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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