INSECTICIDES IND 2023-24 Annual Report Analysis

Tue, 23 Jul

INSECTICIDES IND 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.

INSECTICIDES IND Income Statement Analysis

• Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.3% in FY24 as against 6.8% in FY23.
• Depreciation charges increased by 12.1% and finance costs decreased by 19.1% YoY, respectively.
• Other income grew by 649.1% YoY.
• Net profit for the year grew by 61.9% YoY.
• Net profit margins during the year grew from 3.5% in FY23 to 5.2% in FY24.

INSECTICIDES IND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,013	19,664	9.2%
Other income	Rs m	13	95	649.1%
Total Revenues	Rs m	18,026	19,759	9.6%
Gross profit	Rs m	1,221	1,629	33.4%
Depreciation	Rs m	261	293	12.1%
Interest	Rs m	135	109	-19.1%
Profit before tax	Rs m	838	1,322	57.7%
Tax	Rs m	206	298	44.7%
Profit after tax	Rs m	632	1,024	61.9%
Gross profit margin	%	6.8	8.3
Effective tax rate	%	24.6	22.6
Net profit margin	%	3.5	5.2

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INSECTICIDES IND Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 8 billion in FY23, thereby witnessing an decrease of -13.6%.
• Long-term debt stood at Rs 292 million as compared to Rs 19 million during FY23, a growth of 1469.2%.
• Current assets rose 1% and stood at Rs 12 billion, while fixed assets rose 3% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 2%.

INSECTICIDES IND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,183	10,135	10.4
Current Liabilities	Rs m	7,595	6,563	-13.6
Long-term Debt	Rs m	19	292	1,469.2
Total Liabilities	Rs m	17,175	17,478	1.8
Current assets	Rs m	12,322	12,482	1.3
Fixed Assets	Rs m	4,853	4,996	2.9
Total Assets	Rs m	17,175	17,478	1.8

INSECTICIDES IND Cash Flow Statement Analysis

• INSECTICIDES IND's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -430 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -981 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 426 million from the Rs -174 million net cash flows seen during FY23.

INSECTICIDES IND 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	-106	1,837	-
Cash Flow from Investing Activities	Rs m	-864	-430	-
Cash Flow from Financing Activities	Rs m	797	-981	-
Net Cash Flow	Rs m	-174	426	-

Current Valuations for INSECTICIDES IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.6, an improvement from the EPS of Rs 21.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 769.2, stands at 22.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.7 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	608.6	664.3
TTM Earnings per share	Rs	21.4	34.6
Diluted earnings per share	Rs	21.4	34.6
Price to Cash Flow	x	15.5	12.7
TTM P/E ratio	x	22.0	22.3
Price / Book Value ratio	x	1.9	1.6
Market Cap	Rs m	17,783	16,696
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for INSECTICIDES IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.6x 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 13.1x during FY24, from 7.2x 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 10.1% during FY24, from 6.9% 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 improved and stood at 13.7% during FY24, from 10.6% 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 6.5% during FY24, from 4.5% 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	1.6	1.9
Debtors’ Days	Days	600	551
Interest coverage	x	7.2	13.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.5	6.5
Return on equity	%	6.9	10.1
Return on capital employed	%	10.6	13.7

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

INSECTICIDES IND Share Price Performance

Over the last one year, INSECTICIDES IND share price has moved up from Rs 437.5 to Rs 769.2, registering a gain of Rs 331.7 or around 75.8%.

Overall, the S&P BSE SENSEX is up 19.7% over the year.

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