UFLEX 2023-24 Annual Report Analysis

Thu, 29 Aug

UFLEX 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.

UFLEX Income Statement Analysis

• Operating income during the year fell 54.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.9% in FY24 as against 10.7% in FY23.
• Depreciation charges decreased by 50.2% and finance costs decreased by 46.0% YoY, respectively.
• Other income declined by 70.8% YoY.
• Net profit for the year declined by 66.5% YoY.
• Net profit margins during the year declined from 3.3% in FY23 to 2.4% in FY24.

UFLEX Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	146,625	66,102	-54.9%
Other income	Rs m	1,647	481	-70.8%
Total Revenues	Rs m	148,272	66,583	-55.1%
Gross profit	Rs m	15,638	7,220	-53.8%
Depreciation	Rs m	5,990	2,982	-50.2%
Interest	Rs m	4,734	2,558	-46.0%
Profit before tax	Rs m	6,560	2,161	-67.1%
Tax	Rs m	1,753	551	-68.6%
Profit after tax	Rs m	4,808	1,610	-66.5%
Gross profit margin	%	10.7	10.9
Effective tax rate	%	26.7	25.5
Net profit margin	%	3.3	2.4

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UFLEX Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 26 billion as compared to Rs 48 billion in FY23, thereby witnessing an decrease of -46.2%.
• Long-term debt down at Rs 16 billion as compared to Rs 35 billion during FY23, a fall of 52.9%.
• Current assets fell 52% and stood at Rs 36 billion, while fixed assets fell 56% and stood at Rs 39 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 75 billion as against Rs 164 billion during FY23, thereby witnessing a fall of 54%.

UFLEX Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	74,962	30,436	-59.4
Current Liabilities	Rs m	48,474	26,065	-46.2
Long-term Debt	Rs m	34,634	16,328	-52.9
Total Liabilities	Rs m	164,377	74,844	-54.5
Current assets	Rs m	75,692	36,136	-52.3
Fixed Assets	Rs m	88,685	38,708	-56.4
Total Assets	Rs m	164,377	74,844	-54.5

UFLEX Cash Flow Statement Analysis

• UFLEX's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 7% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 5 billion net cash flows seen during FY23.

UFLEX 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	13,827	4,343	-68.6%
Cash Flow from Investing Activities	Rs m	-11,716	-5,587	-
Cash Flow from Financing Activities	Rs m	2,920	3,139	7.5%
Net Cash Flow	Rs m	5,031	1,896	-62.3%

Current Valuations for UFLEX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.3, an decline from the EPS of Rs 66.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 767.9, stands at -15.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	2,030.5	915.4
TTM Earnings per share	Rs	66.6	22.3
Diluted earnings per share	Rs	66.6	22.3
Price to Cash Flow	x	2.2	6.6
TTM P/E ratio	x	5.0	-15.3
Price / Book Value ratio	x	0.5	1.0
Market Cap	Rs m	41,025	30,156
Dividends per share (Unadj.)	Rs	3.0	1.0

Ratio Analysis for UFLEX

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.6x 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 1.8x during FY24, from 2.4x 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 declined and down at 5.3% 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 10.1% during FY24, from 10.3% 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 5.6% during FY24, from 5.8% 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	1.6	1.4
Debtors’ Days	Days	805	1,184
Interest coverage	x	2.4	1.8
Debt to equity ratio	x	0.5	0.5
Return on assets	%	5.8	5.6
Return on equity	%	6.4	5.3
Return on capital employed	%	10.3	10.1

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

UFLEX Share Price Performance

Over the last one year, UFLEX share price has moved down from Rs 386.0 to Rs 0.0, registering a loss of Rs 386.0 or around 100.0%.

Overall, the NIFTY 50 is down 0.1% over the year.

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