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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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Don't Miss: Key Information for Long-term Investors

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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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)

Annual Report FAQs

What is the current share price of INGERSOLL RAND?

INGERSOLL RAND currently trades at Rs 4,125.3 per share. You can check out the latest share price performance of INGERSOLL RAND here...

What was the revenue of INGERSOLL RAND in FY24? How does it compare to earlier years?

The revenues of INGERSOLL RAND stood at Rs 12,419 m in FY24, which was up 6.1% compared to Rs 11,702 m reported in FY23.

INGERSOLL RAND's revenue has grown from Rs 7,446 m in FY20 to Rs 12,419 m in FY24.

Over the past 5 years, the revenue of INGERSOLL RAND has grown at a CAGR of 13.6%.

What was the net profit of INGERSOLL RAND in FY24? How does it compare to earlier years?

The net profit of INGERSOLL RAND stood at Rs 2,224 m in FY24, which was up 21.8% compared to Rs 1,826 m reported in FY23.

This compares to a net profit of Rs 1,101 m in FY22 and a net profit of Rs 724 m in FY21.

Over the past 5 years, INGERSOLL RAND net profit has grown at a CAGR of 27.3%.

What does the cash flow statement of INGERSOLL RAND reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of INGERSOLL RAND reveals:

  • Cash flow from operations increased in FY24 and stood at Rs 2,069 m as compared to Rs 1,481 m in FY23.
  • Cash flow from investments decreased in FY24 and stood at Rs -343 m as compared to Rs -46 m in FY23.
  • Cash flow from financial activity decreased in FY24 and stood at Rs -2,251 m as compared to Rs -1,617 m in FY23.

Here's the cash flow statement of INGERSOLL RAND for the past 5 years.

(Rs m)FY20FY21FY22FY23FY24
From Operations1,0957658091,4812,069
From Investments590-13-53-46-343
From Financial Activity-1,251-45-130-1,617-2,251
Net Cashflow434707625-187-526

What does the Key Ratio analysis of INGERSOLL RAND reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of INGERSOLL RAND reveals:

  • Operating profit margins witnessed a fall and down at 23.9% in FY24 as against 21.3% in FY23.
  • Net profit margins grew from 15.9% in FY23 to 18.3% in FY24.
  • Debt to Equity ratio for FY24 stood at 0.0 as compared to 0.0 in FY23.

Here's the ratio/financial analysis of INGERSOLL RAND for the past 5 years.

 FY20FY21FY22FY23FY24
Operating Profit Margin (%)13.617.916.621.323.9
Net Profit Margin (%)12.011.712.115.918.3
Debt to Equity Ratio (x)0.00.00.00.00.0

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