INDO BORAX 2023-24 Annual Report Analysis

Fri, 2 Aug

INDO BORAX 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.

INDO BORAX Income Statement Analysis

• Operating income during the year fell 15.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 32.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.4% in FY24 as against 28.2% in FY23.
• Depreciation charges increased by 46.9% and finance costs decreased by 79.1% YoY, respectively.
• Other income grew by 64.1% YoY.
• Net profit for the year declined by 23.1% YoY.
• Net profit margins during the year declined from 22.5% in FY23 to 20.4% in FY24.

INDO BORAX Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,251	1,913	-15.0%
Other income	Rs m	72	118	64.1%
Total Revenues	Rs m	2,323	2,031	-12.6%
Gross profit	Rs m	635	428	-32.6%
Depreciation	Rs m	16	23	46.9%
Interest	Rs m	1	0	-79.1%
Profit before tax	Rs m	690	522	-24.2%
Tax	Rs m	183	133	-27.4%
Profit after tax	Rs m	507	390	-23.1%
Gross profit margin	%	28.2	22.4
Effective tax rate	%	26.5	25.4
Net profit margin	%	22.5	20.4

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INDO BORAX Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 152 million as compared to Rs 176 million in FY23, thereby witnessing an decrease of -13.4%.
• Current assets rose 20% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 13%.

INDO BORAX Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,551	2,934	15.0
Current Liabilities	Rs m	176	152	-13.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,753	3,113	13.1
Current assets	Rs m	1,683	2,013	19.6
Fixed Assets	Rs m	1,070	1,100	2.8
Total Assets	Rs m	2,753	3,113	13.1

INDO BORAX Cash Flow Statement Analysis

• INDO BORAX's cash flow from operating activities (CFO) during FY24 stood at Rs 679 million, an improvement of 12.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -301 million, an improvement of 298.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -32 million, an improvement of 3% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 345 million from the Rs 494 million net cash flows seen during FY23.

INDO BORAX 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	603	679	12.6%
Cash Flow from Investing Activities	Rs m	-76	-301	-
Cash Flow from Financing Activities	Rs m	-33	-32	-
Net Cash Flow	Rs m	494	345	-30.1%

Current Valuations for INDO BORAX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.1, an decline from the EPS of Rs 15.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 186.5, stands at 15.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 13.2 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	70.1	59.6
TTM Earnings per share	Rs	15.8	12.1
Diluted earnings per share	Rs	15.8	12.1
Price to Cash Flow	x	6.3	13.2
TTM P/E ratio	x	6.4	15.4
Price / Book Value ratio	x	1.7	1.8
Market Cap	Rs m	4,380	5,427
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for INDO BORAX

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 13.2x during FY24, from 9.6x 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 improved and stood at 1,866.5x during FY24, from 515.6x 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 declined and down at 13.3% during FY24, from 19.9% 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 17.8% during FY24, from 27.1% 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 12.5% during FY24, from 18.5% 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	9.6	13.2
Debtors’ Days	Days	207	260
Interest coverage	x	515.6	1,866.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	18.5	12.5
Return on equity	%	19.9	13.3
Return on capital employed	%	27.1	17.8

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

INDO BORAX Share Price Performance

Over the last one year, INDO BORAX share price has moved up from Rs 169.9 to Rs 186.5, registering a gain of Rs 16.7 or around 9.8%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

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