INDO AMINES 2023-24 Annual Report Analysis

Thu, 19 Sep

INDO AMINES 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 AMINES Income Statement Analysis

• Operating income during the year fell 0.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.4% in FY24 as against 9.2% in FY23.
• Depreciation charges decreased by 11.9% and finance costs increased by 29.0% YoY, respectively.
• Other income grew by 281.3% YoY.
• Net profit for the year grew by 4.7% YoY.
• Net profit margins during the year grew from 4.3% in FY23 to 4.5% in FY24.

INDO AMINES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,450	9,436	-0.1%
Other income	Rs m	42	161	281.3%
Total Revenues	Rs m	9,492	9,598	1.1%
Gross profit	Rs m	871	794	-8.8%
Depreciation	Rs m	173	153	-11.9%
Interest	Rs m	172	222	29.0%
Profit before tax	Rs m	568	581	2.2%
Tax	Rs m	159	152	-4.2%
Profit after tax	Rs m	409	428	4.7%
Gross profit margin	%	9.2	8.4
Effective tax rate	%	28.0	26.3
Net profit margin	%	4.3	4.5

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INDO AMINES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -1.9%.
• Long-term debt stood at Rs 597 million as compared to Rs 581 million during FY23, a growth of 2.8%.
• Current assets rose 6% and stood at Rs 4 billion, while fixed assets rose 6% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 6%.

INDO AMINES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,254	2,633	16.8
Current Liabilities	Rs m	3,092	3,033	-1.9
Long-term Debt	Rs m	581	597	2.8
Total Liabilities	Rs m	5,973	6,335	6.1
Current assets	Rs m	3,726	3,955	6.1
Fixed Assets	Rs m	2,247	2,380	5.9
Total Assets	Rs m	5,973	6,335	6.1

INDO AMINES Cash Flow Statement Analysis

• INDO AMINES's cash flow from operating activities (CFO) during FY24 stood at Rs 697 million, an improvement of 242.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -266 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -409 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 22 million from the Rs -54 million net cash flows seen during FY23.

INDO AMINES 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	204	697	242.1%
Cash Flow from Investing Activities	Rs m	-298	-266	-
Cash Flow from Financing Activities	Rs m	40	-409	-
Net Cash Flow	Rs m	-54	22	-

Current Valuations for INDO AMINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 219.4, stands at 31.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 15.9 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	133.7	133.5
TTM Earnings per share	Rs	5.8	6.1
Diluted earnings per share	Rs	5.8	6.1
Price to Cash Flow	x	9.4	15.9
TTM P/E ratio	x	13.4	31.0
Price / Book Value ratio	x	3.8	3.5
Market Cap	Rs m	8,664	9,224
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for INDO AMINES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 3.6x during FY24, from 4.3x 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 16.3% during FY24, from 18.1% 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 24.9% during FY24, from 26.1% 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 10.3% during FY24, from 9.7% 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	1.2	1.3
Debtors’ Days	Days	724	841
Interest coverage	x	4.3	3.6
Debt to equity ratio	x	0.3	0.2
Return on assets	%	9.7	10.3
Return on equity	%	18.1	16.3
Return on capital employed	%	26.1	24.9

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

INDO AMINES Share Price Performance

Over the last one year, INDO AMINES share price has moved up from Rs 122.6 to Rs 219.4, registering a gain of Rs 96.9 or around 79.0%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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