INDIGO PAINTS 2023-24 Annual Report Analysis

Mon, 22 Jul

INDIGO PAINTS 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.

INDIGO PAINTS Income Statement Analysis

• Operating income during the year rose 21.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.2% in FY24 as against 16.9% in FY23.
• Depreciation charges increased by 50.2% and finance costs increased by 54.1% YoY, respectively.
• Other income grew by 40.8% YoY.
• Net profit for the year grew by 12.8% YoY.
• Net profit margins during the year declined from 12.3% in FY23 to 11.4% in FY24.

INDIGO PAINTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,733	13,061	21.7%
Other income	Rs m	101	142	40.8%
Total Revenues	Rs m	10,834	13,203	21.9%
Gross profit	Rs m	1,815	2,381	31.2%
Depreciation	Rs m	343	516	50.2%
Interest	Rs m	14	21	54.1%
Profit before tax	Rs m	1,559	1,986	27.4%
Tax	Rs m	239	498	107.8%
Profit after tax	Rs m	1,319	1,488	12.8%
Gross profit margin	%	16.9	18.2
Effective tax rate	%	15.4	25.1
Net profit margin	%	12.3	11.4

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

INDIGO PAINTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 8.4%.
• Long-term debt stood at Rs 15 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 20% and stood at Rs 6 billion, while fixed assets rose 19% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 20%.

INDIGO PAINTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,663	8,892	16.0
Current Liabilities	Rs m	2,641	2,861	8.4
Long-term Debt	Rs m	0	15	0.0
Total Liabilities	Rs m	10,616	12,704	19.7
Current assets	Rs m	5,187	6,246	20.4
Fixed Assets	Rs m	5,429	6,458	19.0
Total Assets	Rs m	10,616	12,704	19.7

INDIGO PAINTS Cash Flow Statement Analysis

• INDIGO PAINTS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 30.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 79.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -232 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -143 million from the Rs 116 million net cash flows seen during FY23.

INDIGO PAINTS 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	1,161	1,510	30.1%
Cash Flow from Investing Activities	Rs m	-844	-1,517	-
Cash Flow from Financing Activities	Rs m	-201	-232	-
Net Cash Flow	Rs m	116	-143	-

Current Valuations for INDIGO PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.3, an improvement from the EPS of Rs 27.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,471.5, stands at 47.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.9 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 32.2 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	225.5	274.3
TTM Earnings per share	Rs	27.7	31.3
Diluted earnings per share	Rs	27.7	31.3
Price to Cash Flow	x	28.9	32.2
TTM P/E ratio	x	36.4	47.1
Price / Book Value ratio	x	8.5	7.3
Market Cap	Rs m	64,799	64,622
Dividends per share (Unadj.)	Rs	3.5	3.5

Ratio Analysis for INDIGO PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x during FY24, from 2.0x 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 94.6x during FY24, from 114.3x 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 16.7% during FY24, from 17.2% 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 22.5% during FY24, from 20.5% 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 declined and down at 11.9% during FY24, from 12.6% 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	2.0	2.2
Debtors’ Days	Days	680	623
Interest coverage	x	114.3	94.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	11.9
Return on equity	%	17.2	16.7
Return on capital employed	%	20.5	22.5

To see how INDIGO PAINTS has performed over the last 5 years, please visit here.

INDIGO PAINTS Share Price Performance

Over the last one year, INDIGO PAINTS share price has moved down from Rs 1,499.7 to Rs 1,471.5, registering a loss of Rs 28.2 or around 1.9%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for INDIGO PAINTS and quarterly results for INDIGO PAINTS)