INTERARCH BUILDING PRODUCTS LTD. 2023-24 Annual Report Analysis

Wed, 28 Aug

INTERARCH BUILDING PRODUCTS LTD. 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.

INTERARCH BUILDING PRODUCTS LTD. Income Statement Analysis

• Operating income during the year rose 15.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY24 as against 9.4% in FY23.
• Depreciation charges increased by 9.3% and finance costs increased by 30.3% YoY, respectively.
• Other income declined by 27.8% YoY.
• Net profit for the year grew by 5.9% YoY.
• Net profit margins during the year declined from 7.2% in FY23 to 6.7% in FY24.

INTERARCH BUILDING PRODUCTS LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,239	12,933	15.1%
Other income	Rs m	180	130	-27.8%
Total Revenues	Rs m	11,420	13,063	14.4%
Gross profit	Rs m	1,051	1,199	14.0%
Depreciation	Rs m	73	80	9.3%
Interest	Rs m	69	90	30.3%
Profit before tax	Rs m	1,090	1,159	6.4%
Tax	Rs m	275	296	7.8%
Profit after tax	Rs m	815	863	5.9%
Gross profit margin	%	9.4	9.3
Effective tax rate	%	25.2	25.6
Net profit margin	%	7.2	6.7

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INTERARCH BUILDING PRODUCTS LTD. 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 18.3%.
• Long-term debt down at Rs 6 million as compared to Rs 11 million during FY23, a fall of 41.8%.
• Current assets rose 11% and stood at Rs 5 billion, while fixed assets rose 15% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 12%.

INTERARCH BUILDING PRODUCTS LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,993	4,446	11.4
Current Liabilities	Rs m	2,539	3,002	18.3
Long-term Debt	Rs m	11	6	-41.8
Total Liabilities	Rs m	6,988	7,848	12.3
Current assets	Rs m	4,637	5,146	11.0
Fixed Assets	Rs m	2,351	2,702	14.9
Total Assets	Rs m	6,988	7,848	12.3

INTERARCH BUILDING PRODUCTS LTD. Cash Flow Statement Analysis

• INTERARCH BUILDING PRODUCTS LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 815 million, an improvement of 160.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -328 million, an improvement of 72.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -458 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 29 million from the Rs 186 million net cash flows seen during FY23.

INTERARCH BUILDING PRODUCTS LTD. 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	313	815	160.6%
Cash Flow from Investing Activities	Rs m	-190	-328	-
Cash Flow from Financing Activities	Rs m	63	-458	-
Net Cash Flow	Rs m	186	29	-84.3%

Current Valuations for INTERARCH BUILDING PRODUCTS LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 59.8, an improvement from the EPS of Rs 54.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,154.3, stands at 22.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 20.4 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	749.3	896.9
TTM Earnings per share	Rs	54.3	59.8
Diluted earnings per share	Rs	49.0	51.8
Price to Cash Flow	x	0.0	20.4
TTM P/E ratio	x	0.0	22.3
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	19,208
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for INTERARCH BUILDING PRODUCTS LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 1.8x 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 13.9x during FY24, from 16.8x 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 19.4% during FY24, from 20.4% 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 28.1% during FY24, from 28.9% 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 12.1% 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	1.8	1.7
Debtors’ Days	Days	52	48
Interest coverage	x	16.8	13.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.6	12.1
Return on equity	%	20.4	19.4
Return on capital employed	%	28.9	28.1

To see how INTERARCH BUILDING PRODUCTS LTD. has performed over the last 5 years, please visit here.

INTERARCH BUILDING PRODUCTS LTD. Share Price Performance

Over the last one year, INTERARCH BUILDING PRODUCTS LTD. share price has moved up from Rs 0.0 to Rs 1,154.3, registering a gain of Rs 1,154.3 or around 0.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 32,582.7 (up 0.1%). Over the last one year it has moved up from 21,357.5 to 32,582.7, a gain of 11,225 points (up 52.6%).

Overall, the S&P BSE SENSEX is up 26.1% over the year.

(To know more, check out historical annual results for INTERARCH BUILDING PRODUCTS LTD. and quarterly results for INTERARCH BUILDING PRODUCTS LTD.)