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EMAMI 2023-24 Annual Report Analysis

Mon, 5 Aug

EMAMI 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.

EMAMI Income Statement Analysis

• Operating income during the year rose 5.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.3% in FY24 as against 25.1% in FY23.
• Depreciation charges decreased by 24.8% and finance costs increased by 35.0% YoY, respectively.
• Other income declined by 32.1% YoY.
• Net profit for the year grew by 15.4% YoY.
• Net profit margins during the year grew from 18.4% in FY23 to 20.2% in FY24.

EMAMI Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	34,057	35,781	5.1%
Other income	Rs m	689	468	-32.1%
Total Revenues	Rs m	34,747	36,249	4.3%
Gross profit	Rs m	8,553	9,399	9.9%
Depreciation	Rs m	2,472	1,859	-24.8%
Interest	Rs m	74	100	35.0%
Profit before tax	Rs m	6,695	7,908	18.1%
Tax	Rs m	421	667	58.3%
Profit after tax	Rs m	6,274	7,241	15.4%
Gross profit margin	%	25.1	26.3
Effective tax rate	%	6.3	8.4
Net profit margin	%	18.4	20.2

For Investors: Our Big Prediction

EMAMI Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 4.8%.
• Current assets rose 10% and stood at Rs 14 billion, while fixed assets fell 2% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 3%.

EMAMI Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,028	24,466	6.2
Current Liabilities	Rs m	7,239	7,588	4.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	27,462	28,418	3.5
Current assets	Rs m	12,868	14,182	10.2
Fixed Assets	Rs m	14,594	14,236	-2.5
Total Assets	Rs m	27,462	28,418	3.5

EMAMI Cash Flow Statement Analysis

• EMAMI's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 4.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 82.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion, an improvement of 7% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 62 million from the Rs 192 million net cash flows seen during FY23.

EMAMI 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	7,489	7,790	4.0%
Cash Flow from Investing Activities	Rs m	-1,128	-2,054	-
Cash Flow from Financing Activities	Rs m	-6,076	-5,630	-
Net Cash Flow	Rs m	192	62	-67.9%

Current Valuations for EMAMI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an improvement from the EPS of Rs 14.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 749.3, stands at 44.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.4 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 22.6 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	77.2	82.0
TTM Earnings per share	Rs	14.2	16.6
Diluted earnings per share	Rs	14.4	16.6
Price to Cash Flow	x	17.9	22.6
TTM P/E ratio	x	24.6	44.0
Price / Book Value ratio	x	8.3	8.4
Market Cap	Rs m	190,996	205,624
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for EMAMI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.8x 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 80.3x during FY24, from 91.6x 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 29.6% during FY24, from 27.2% 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 32.7% during FY24, from 29.4% 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 25.8% during FY24, from 23.1% 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	1.8	1.9
Debtors’ Days	Days	444	504
Interest coverage	x	91.6	80.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	23.1	25.8
Return on equity	%	27.2	29.6
Return on capital employed	%	29.4	32.7

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

EMAMI Share Price Performance

Over the last one year, EMAMI share price has moved up from Rs 449.6 to Rs 749.3, registering a gain of Rs 299.8 or around 66.7%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 22,224.4 (down 0.7%). Over the last one year it has moved up from 18,777.8 to 22,224.4, a gain of 3,447 points (up 18.4%).

Overall, the S&P BSE SENSEX is up 18.6% over the year.

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