INDO COUNT 2023-24 Annual Report Analysis

Thu, 11 Jul

INDO COUNT 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 COUNT Income Statement Analysis

• Operating income during the year rose 18.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.7% in FY24 as against 15.1% in FY23.
• Depreciation charges increased by 27.6% and finance costs increased by 12.0% YoY, respectively.
• Other income grew by 39.1% YoY.
• Net profit for the year grew by 22.1% YoY.
• Net profit margins during the year grew from 9.2% in FY23 to 9.5% in FY24.

INDO COUNT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	30,116	35,571	18.1%
Other income	Rs m	314	437	39.1%
Total Revenues	Rs m	30,430	36,008	18.3%
Gross profit	Rs m	4,543	5,590	23.1%
Depreciation	Rs m	647	826	27.6%
Interest	Rs m	624	698	12.0%
Profit before tax	Rs m	3,586	4,503	25.6%
Tax	Rs m	818	1,124	37.4%
Profit after tax	Rs m	2,768	3,379	22.1%
Gross profit margin	%	15.1	15.7
Effective tax rate	%	22.8	25.0
Net profit margin	%	9.2	9.5

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INDO COUNT Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 24.8%.
• Long-term debt down at Rs 1 billion as compared to Rs 2 billion during FY23, a fall of 31.6%.
• Current assets rose 26% and stood at Rs 21 billion, while fixed assets rose 6% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 36 billion as against Rs 30 billion during FY23, thereby witnessing a growth of 17%.

INDO COUNT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	17,927	20,891	16.5
Current Liabilities	Rs m	9,458	11,802	24.8
Long-term Debt	Rs m	1,984	1,357	-31.6
Total Liabilities	Rs m	30,478	35,686	17.1
Current assets	Rs m	17,015	21,397	25.8
Fixed Assets	Rs m	13,463	14,289	6.1
Total Assets	Rs m	30,478	35,686	17.1

INDO COUNT Cash Flow Statement Analysis

• INDO COUNT'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 -975 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -474 million, an improvement of 92% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 9 million from the Rs -3 billion net cash flows seen during FY23.

INDO COUNT 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	7,550	1,458	-80.7%
Cash Flow from Investing Activities	Rs m	-4,738	-975	-
Cash Flow from Financing Activities	Rs m	-5,744	-474	-
Net Cash Flow	Rs m	-2,932	9	-

Current Valuations for INDO COUNT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.1, an improvement from the EPS of Rs 14.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 406.5, stands at 23.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 11.2 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	152.1	179.6
TTM Earnings per share	Rs	14.0	17.1
Diluted earnings per share	Rs	14.0	17.1
Price to Cash Flow	x	6.5	11.2
TTM P/E ratio	x	8.0	23.8
Price / Book Value ratio	x	1.6	2.3
Market Cap	Rs m	28,772	47,186
Dividends per share (Unadj.)	Rs	2.0	2.2

Ratio Analysis for INDO COUNT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x 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 improved and stood at 7.4x during FY24, from 6.7x 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 16.2% during FY24, from 15.4% 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 improved and stood at 23.4% during FY24, from 21.1% 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 improved and stood at 11.4% during FY24, from 11.1% 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	1.8
Debtors’ Days	Days	481	542
Interest coverage	x	6.7	7.4
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.1	11.4
Return on equity	%	15.4	16.2
Return on capital employed	%	21.1	23.4

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

INDO COUNT Share Price Performance

Over the last one year, INDO COUNT share price has moved up from Rs 211.4 to Rs 406.5, registering a gain of Rs 195.1 or around 92.3%.

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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