INGERSOLL RAND 2023-24 Annual Report Analysis

Thu, 18 Jul

INGERSOLL RAND 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.

INGERSOLL RAND Income Statement Analysis

• Operating income during the year rose 5.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.9% in FY24 as against 21.3% in FY23.
• Depreciation charges increased by 8.6% and finance costs decreased by 14.0% YoY, respectively.
• Other income grew by 45.5% YoY.
• Net profit for the year grew by 21.8% YoY.
• Net profit margins during the year grew from 15.9% in FY23 to 18.3% in FY24.

INGERSOLL RAND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,508	12,137	5.5%
Other income	Rs m	194	282	45.5%
Total Revenues	Rs m	11,702	12,419	6.1%
Gross profit	Rs m	2,456	2,896	17.9%
Depreciation	Rs m	163	177	8.6%
Interest	Rs m	24	21	-14.0%
Profit before tax	Rs m	2,463	2,980	21.0%
Tax	Rs m	637	757	18.8%
Profit after tax	Rs m	1,826	2,224	21.8%
Gross profit margin	%	21.3	23.9
Effective tax rate	%	25.8	25.4
Net profit margin	%	15.9	18.3

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INGERSOLL RAND 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 -5.9%.
• Current assets fell 8% and stood at Rs 7 billion, while fixed assets rose 32% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 9 billion during FY23, thereby witnessing a fall of 1%.

INGERSOLL RAND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,758	5,781	0.4
Current Liabilities	Rs m	2,761	2,598	-5.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,579	8,464	-1.3
Current assets	Rs m	7,220	6,668	-7.6
Fixed Assets	Rs m	1,359	1,797	32.2
Total Assets	Rs m	8,579	8,464	-1.3

INGERSOLL RAND Cash Flow Statement Analysis

• INGERSOLL RAND's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 39.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -343 million, an improvement of 639.0% 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 -526 million from the Rs -187 million net cash flows seen during FY23.

INGERSOLL RAND 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	1,481	2,069	39.7%
Cash Flow from Investing Activities	Rs m	-46	-343	-
Cash Flow from Financing Activities	Rs m	-1,617	-2,251	-
Net Cash Flow	Rs m	-187	-526	-

Current Valuations for INGERSOLL RAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 70.4, an improvement from the EPS of Rs 57.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,345.7, stands at 61.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.7 times, while the price to sales ratio stands at 11.3 times.
• The company's price to cash flow (P/CF) ratio stood at 41.4 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	364.5	384.4
TTM Earnings per share	Rs	57.9	70.4
Diluted earnings per share	Rs	57.9	70.4
Price to Cash Flow	x	41.4	41.4
TTM P/E ratio	x	45.1	61.7
Price / Book Value ratio	x	10.8	17.2
Market Cap	Rs m	62,458	99,456
Dividends per share (Unadj.)	Rs	50.0	70.0

Ratio Analysis for INGERSOLL RAND

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY24, from 2.6x 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 145.0x during FY24, from 103.3x 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 improved and stood at 38.5% during FY24, from 31.7% 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 51.9% during FY24, from 43.2% 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 26.5% during FY24, from 21.6% 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	2.6	2.6
Debtors’ Days	Days	850	748
Interest coverage	x	103.3	145.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.6	26.5
Return on equity	%	31.7	38.5
Return on capital employed	%	43.2	51.9

To see how INGERSOLL RAND has performed over the last 5 years, please visit here.

INGERSOLL RAND Share Price Performance

Over the last one year, INGERSOLL RAND share price has moved up from Rs 2,817.8 to Rs 4,345.7, registering a gain of Rs 1,527.9 or around 54.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,190.3 (down 1.7%). Over the last one year it has moved up from 41,608.8 to 73,190.3, a gain of 31,582 points (up 75.9%).

Overall, the S&P BSE SENSEX is up 21.3% over the year.

(To know more, check out historical annual results for INGERSOLL RAND and quarterly results for INGERSOLL RAND)