INDIAN METALS 2023-24 Annual Report Analysis

Mon, 8 Jul

INDIAN METALS 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.

INDIAN METALS Income Statement Analysis

• Operating income during the year rose 3.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 24.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.1% in FY24 as against 17.7% in FY23.
• Depreciation charges decreased by 27.3% and finance costs decreased by 47.0% YoY, respectively.
• Other income grew by 73.7% YoY.
• Net profit for the year grew by 64.9% YoY.
• Net profit margins during the year grew from 8.4% in FY23 to 13.4% in FY24.

INDIAN METALS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,764	27,802	3.9%
Other income	Rs m	243	422	73.7%
Total Revenues	Rs m	27,007	28,224	4.5%
Gross profit	Rs m	4,728	5,869	24.1%
Depreciation	Rs m	1,073	780	-27.3%
Interest	Rs m	659	349	-47.0%
Profit before tax	Rs m	3,239	5,161	59.4%
Tax	Rs m	981	1,437	46.5%
Profit after tax	Rs m	2,258	3,724	64.9%
Gross profit margin	%	17.7	21.1
Effective tax rate	%	30.3	27.8
Net profit margin	%	8.4	13.4

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

INDIAN METALS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -2.5%.
• Long-term debt down at Rs 2 million as compared to Rs 54 million during FY23, a fall of 96.3%.
• Current assets rose 11% and stood at Rs 17 billion, while fixed assets rose 2% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 7%.

INDIAN METALS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	18,729	21,201	13.2
Current Liabilities	Rs m	6,652	6,489	-2.5
Long-term Debt	Rs m	54	2	-96.3
Total Liabilities	Rs m	26,535	28,318	6.7
Current assets	Rs m	15,018	16,598	10.5
Fixed Assets	Rs m	11,516	11,718	1.8
Total Assets	Rs m	26,535	28,318	6.7

INDIAN METALS Cash Flow Statement Analysis

• INDIAN METALS's cash flow from operating activities (CFO) during FY24 stood at Rs 5 billion, an improvement of 239.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 437 million from the Rs 7 million net cash flows seen during FY23.

INDIAN METALS 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	1,509	5,121	239.3%
Cash Flow from Investing Activities	Rs m	1,402	-2,092	-
Cash Flow from Financing Activities	Rs m	-2,905	-2,592	-
Net Cash Flow	Rs m	7	437	6,623.1%

Current Valuations for INDIAN METALS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 69.0, an improvement from the EPS of Rs 41.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 735.9, stands at 10.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.7 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	496.1	515.3
TTM Earnings per share	Rs	41.8	69.0
Diluted earnings per share	Rs	41.8	69.0
Price to Cash Flow	x	4.6	5.7
TTM P/E ratio	x	6.8	10.7
Price / Book Value ratio	x	1.1	1.2
Market Cap	Rs m	19,828	25,789
Dividends per share (Unadj.)	Rs	10.0	30.0

Ratio Analysis for INDIAN METALS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 2.3x 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 15.8x during FY24, from 5.9x 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 17.6% during FY24, from 12.1% 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 improved and stood at 26.0% during FY24, from 20.8% 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 14.4% during FY24, from 11.0% 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	2.3	2.6
Debtors’ Days	Days	1	1
Interest coverage	x	5.9	15.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.0	14.4
Return on equity	%	12.1	17.6
Return on capital employed	%	20.8	26.0

To see how INDIAN METALS has performed over the last 5 years, please visit here.

INDIAN METALS Share Price Performance

Over the last one year, INDIAN METALS share price has moved up from Rs 342.2 to Rs 735.9, registering a gain of Rs 393.7 or around 115.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,686.9 (down 0.2%). Over the last one year it has moved up from 20,730.0 to 33,686.9, a gain of 12,957 points (up 62.5%).

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

(To know more, check out historical annual results for INDIAN METALS and quarterly results for INDIAN METALS)