OLECTRA GREENTECH 2023-24 Annual Report Analysis

Mon, 2 Sep

OLECTRA GREENTECH 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.

OLECTRA GREENTECH Income Statement Analysis

• Operating income during the year rose 2.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY24 as against 12.4% in FY23.
• Depreciation charges decreased by 18.2% and finance costs increased by 34.4% YoY, respectively.
• Other income declined by 20.0% YoY.
• Net profit for the year grew by 10.1% YoY.
• Net profit margins during the year grew from 6.1% in FY23 to 6.6% in FY24.

OLECTRA GREENTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,908	11,140	2.1%
Other income	Rs m	186	149	-20.0%
Total Revenues	Rs m	11,094	11,288	1.8%
Gross profit	Rs m	1,354	1,531	13.1%
Depreciation	Rs m	331	271	-18.2%
Interest	Rs m	314	422	34.4%
Profit before tax	Rs m	894	987	10.4%
Tax	Rs m	225	251	11.2%
Profit after tax	Rs m	669	736	10.1%
Gross profit margin	%	12.4	13.7
Effective tax rate	%	25.2	25.4
Net profit margin	%	6.1	6.6

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OLECTRA GREENTECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -16.3%.
• Long-term debt down at Rs 42 million as compared to Rs 92 million during FY23, a fall of 54.8%.
• Current assets fell 1% and stood at Rs 11 billion, while fixed assets fell 4% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 16 billion during FY23, thereby witnessing a fall of 2%.

OLECTRA GREENTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,397	9,192	9.5
Current Liabilities	Rs m	6,649	5,568	-16.3
Long-term Debt	Rs m	92	42	-54.8
Total Liabilities	Rs m	15,569	15,285	-1.8
Current assets	Rs m	11,464	11,327	-1.2
Fixed Assets	Rs m	4,105	3,958	-3.6
Total Assets	Rs m	15,569	15,285	-1.8

OLECTRA GREENTECH Cash Flow Statement Analysis

• OLECTRA GREENTECH's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -760 million, an improvement of 100.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -528 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -17 million from the Rs -129 million net cash flows seen during FY23.

OLECTRA GREENTECH 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	-103	1,271	-
Cash Flow from Investing Activities	Rs m	-378	-760	-
Cash Flow from Financing Activities	Rs m	352	-528	-
Net Cash Flow	Rs m	-129	-17	-

Current Valuations for OLECTRA GREENTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an improvement from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,552.0, stands at 178.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.9 times, while the price to sales ratio stands at 11.4 times.
• The company's price to cash flow (P/CF) ratio stood at 115.7 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	132.9	135.7
TTM Earnings per share	Rs	8.1	9.0
Diluted earnings per share	Rs	8.1	9.0
Price to Cash Flow	x	50.8	115.7
TTM P/E ratio	x	79.0	178.1
Price / Book Value ratio	x	5.5	12.7
Market Cap	Rs m	45,877	116,579
Dividends per share (Unadj.)	Rs	0.4	0.4

Ratio Analysis for OLECTRA GREENTECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.7x 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 3.3x during FY24, from 3.8x 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 8.0% during FY24, from 8.0% 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 improved and stood at 15.3% during FY24, from 14.2% 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 improved and stood at 7.6% during FY24, from 6.3% 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	1.7	2.0
Debtors’ Days	Days	2,110	1,675
Interest coverage	x	3.8	3.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.3	7.6
Return on equity	%	8.0	8.0
Return on capital employed	%	14.2	15.3

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

OLECTRA GREENTECH Share Price Performance

Over the last one year, OLECTRA GREENTECH share price has moved up from Rs 1,238.7 to Rs 1,552.0, registering a gain of Rs 313.4 or around 25.3%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 58,879.1 (down 0.3%). Over the last one year it has moved up from 36,075.1 to 58,879.1, a gain of 22,804 points (up 63.2%).

Overall, the S&P BSE SENSEX is up 26.9% over the year.

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