ION EXCHANGE 2023-24 Annual Report Analysis

Thu, 15 Aug

ION EXCHANGE 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.

ION EXCHANGE Income Statement Analysis

• Operating income during the year rose 18.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY24 as against 13.0% in FY23.
• Depreciation charges increased by 25.2% and finance costs increased by 28.3% YoY, respectively.
• Other income grew by 12.5% YoY.
• Net profit for the year grew by 0.2% YoY.
• Net profit margins during the year declined from 9.8% in FY23 to 8.3% in FY24.

ION EXCHANGE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	19,896	23,478	18.0%
Other income	Rs m	411	462	12.5%
Total Revenues	Rs m	20,307	23,940	17.9%
Gross profit	Rs m	2,588	2,746	6.1%
Depreciation	Rs m	291	364	25.2%
Interest	Rs m	121	155	28.3%
Profit before tax	Rs m	2,587	2,689	3.9%
Tax	Rs m	637	735	15.4%
Profit after tax	Rs m	1,950	1,954	0.2%
Gross profit margin	%	13.0	11.7
Effective tax rate	%	24.6	27.3
Net profit margin	%	9.8	8.3

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ION EXCHANGE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 19.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 157 million during FY23, a growth of 595.7%.
• Current assets rose 20% and stood at Rs 20 billion, while fixed assets rose 63% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 27%.

ION EXCHANGE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,335	10,179	22.1
Current Liabilities	Rs m	10,514	12,591	19.8
Long-term Debt	Rs m	157	1,091	595.7
Total Liabilities	Rs m	19,285	24,409	26.6
Current assets	Rs m	16,279	19,506	19.8
Fixed Assets	Rs m	3,006	4,903	63.1
Total Assets	Rs m	19,285	24,409	26.6

ION EXCHANGE Cash Flow Statement Analysis

• ION EXCHANGE's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 107.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 296.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 84 million, an improvement of 155% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -217 million from the Rs 63 million net cash flows seen during FY23.

ION EXCHANGE 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	627	1,299	107.2%
Cash Flow from Investing Activities	Rs m	-404	-1,601	-
Cash Flow from Financing Activities	Rs m	-153	84	-
Net Cash Flow	Rs m	63	-217	-

Current Valuations for ION EXCHANGE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.7, an decline from the EPS of Rs 137.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 653.0, stands at 46.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.4 times, while the price to sales ratio stands at 4.0 times.
• The company's price to cash flow (P/CF) ratio stood at 30.9 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	1,398.2	165.0
TTM Earnings per share	Rs	137.0	13.7
Diluted earnings per share	Rs	13.3	13.3
Price to Cash Flow	x	22.3	30.9
TTM P/E ratio	x	25.8	46.7
Price / Book Value ratio	x	0.4	7.0
Market Cap	Rs m	3,590	71,585
Dividends per share (Unadj.)	Rs	1.3	1.5

Ratio Analysis for ION EXCHANGE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.5x 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 18.4x during FY24, from 22.5x 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 19.2% during FY24, from 23.4% 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 25.2% during FY24, from 31.9% 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 8.6% during FY24, from 10.7% 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	1.5	1.5
Debtors’ Days	Days	1,278	1,453
Interest coverage	x	22.5	18.4
Debt to equity ratio	x	0.0	0.1
Return on assets	%	10.7	8.6
Return on equity	%	23.4	19.2
Return on capital employed	%	31.9	25.2

To see how ION EXCHANGE has performed over the last 5 years, please visit here.

ION EXCHANGE Share Price Performance

Over the last one year, ION EXCHANGE share price has moved up from Rs 512.8 to Rs 653.0, registering a gain of Rs 140.2 or around 27.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,539.5 (down 0.6%). Over the last one year it has moved up from 43,332.6 to 71,539.5, a gain of 28,207 points (up 65.1%).

Overall, the S&P BSE SENSEX is up 21.0% over the year.

(To know more, check out historical annual results for ION EXCHANGE and quarterly results for ION EXCHANGE)