IFB INDUSTRIES 2023-24 Annual Report Analysis

Mon, 8 Jul

IFB INDUSTRIES 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.

IFB INDUSTRIES Income Statement Analysis

• Operating income during the year rose 2.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 4.7% in FY24 as against 3.8% in FY23.
• Depreciation charges increased by 0.5% and finance costs decreased by 8.4% YoY, respectively.
• Other income grew by 43.5% YoY.
• Net profit for the year grew by 361.0% YoY.
• Net profit margins during the year grew from 0.4% in FY23 to 1.6% in FY24.

IFB INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	41,950	43,117	2.8%
Other income	Rs m	269	386	43.5%
Total Revenues	Rs m	42,219	43,503	3.0%
Gross profit	Rs m	1,600	2,044	27.7%
Depreciation	Rs m	1,215	1,222	0.5%
Interest	Rs m	332	304	-8.4%
Profit before tax	Rs m	322	904	180.8%
Tax	Rs m	172	215	24.6%
Profit after tax	Rs m	149	689	361.0%
Gross profit margin	%	3.8	4.7
Effective tax rate	%	53.6	23.8
Net profit margin	%	0.4	1.6

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IFB INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 12 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 7.4%.
• Long-term debt down at Rs 215 million as compared to Rs 637 million during FY23, a fall of 66.2%.
• Current assets rose 11% and stood at Rs 14 billion, while fixed assets fell 9% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 3%.

IFB INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,675	7,261	8.8
Current Liabilities	Rs m	11,390	12,234	7.4
Long-term Debt	Rs m	637	215	-66.2
Total Liabilities	Rs m	21,068	21,629	2.7
Current assets	Rs m	12,443	13,805	10.9
Fixed Assets	Rs m	8,625	7,824	-9.3
Total Assets	Rs m	21,068	21,629	2.7

IFB INDUSTRIES Cash Flow Statement Analysis

• IFB INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 231.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 2,211.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 271 million from the Rs 57 million net cash flows seen during FY23.

IFB INDUSTRIES 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	1,055	3,495	231.1%
Cash Flow from Investing Activities	Rs m	-60	-1,396	-
Cash Flow from Financing Activities	Rs m	-941	-1,827	-
Net Cash Flow	Rs m	57	271	378.1%

Current Valuations for IFB INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.0, an improvement from the EPS of Rs 3.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,710.8, stands at 93.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.5 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 23.9 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	1,035.3	1,064.1
TTM Earnings per share	Rs	3.7	17.0
Diluted earnings per share	Rs	3.7	17.0
Price to Cash Flow	x	22.0	23.9
TTM P/E ratio	x	173.2	93.0
Price / Book Value ratio	x	5.7	6.3
Market Cap	Rs m	37,764	45,718
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IFB INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 1.1x 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 4.0x during FY24, from 2.0x 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 9.5% during FY24, from 2.2% 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 16.2% during FY24, from 8.9% 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 4.6% during FY24, from 2.3% 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	1.1	1.1
Debtors’ Days	Days	4	4
Interest coverage	x	2.0	4.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	2.3	4.6
Return on equity	%	2.2	9.5
Return on capital employed	%	8.9	16.2

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

IFB INDUSTRIES Share Price Performance

Over the last one year, IFB INDUSTRIES share price has moved up from Rs 823.5 to Rs 1,710.8, registering a gain of Rs 887.3 or around 107.8%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 57,941.8 (down 1.3%). Over the last one year it has moved up from 43,408.5 to 57,941.8, a gain of 14,533 points (up 33.5%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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