INDIA PESTICIDES 2023-24 Annual Report Analysis

Wed, 31 Jul

INDIA PESTICIDES 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.

INDIA PESTICIDES Income Statement Analysis

• Operating income during the year fell 23.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 55.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.8% in FY24 as against 22.3% in FY23.
• Depreciation charges increased by 31.2% and finance costs decreased by 46.9% YoY, respectively.
• Other income grew by 16.8% YoY.
• Net profit for the year declined by 57.3% YoY.
• Net profit margins during the year declined from 16.2% in FY23 to 9.0% in FY24.

INDIA PESTICIDES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,849	6,806	-23.1%
Other income	Rs m	132	155	16.8%
Total Revenues	Rs m	8,982	6,961	-22.5%
Gross profit	Rs m	1,969	871	-55.8%
Depreciation	Rs m	114	149	31.2%
Interest	Rs m	72	38	-46.9%
Profit before tax	Rs m	1,916	838	-56.3%
Tax	Rs m	484	226	-53.3%
Profit after tax	Rs m	1,432	612	-57.3%
Gross profit margin	%	22.3	12.8
Effective tax rate	%	25.3	27.0
Net profit margin	%	16.2	9.0

Dear Reader: If You Invest in Midcap Stocks, this is for You

INDIA PESTICIDES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -3.5%.
• Long-term debt stood at Rs 20 million as compared to Rs 17 million during FY23, a growth of 18.3%.
• Current assets fell 2% and stood at Rs 6 billion, while fixed assets rose 17% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 5%.

INDIA PESTICIDES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,731	8,278	7.1
Current Liabilities	Rs m	1,725	1,664	-3.5
Long-term Debt	Rs m	17	20	18.3
Total Liabilities	Rs m	9,670	10,138	4.8
Current assets	Rs m	6,311	6,191	-1.9
Fixed Assets	Rs m	3,359	3,947	17.5
Total Assets	Rs m	9,670	10,138	4.8

INDIA PESTICIDES Cash Flow Statement Analysis

• INDIA PESTICIDES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 163.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 417.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 23 million, an improvement of 109% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -35 million from the Rs -37 million net cash flows seen during FY23.

INDIA PESTICIDES 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	454	1,197	163.8%
Cash Flow from Investing Activities	Rs m	-243	-1,254	-
Cash Flow from Financing Activities	Rs m	-248	23	-
Net Cash Flow	Rs m	-37	-35	-

Current Valuations for INDIA PESTICIDES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.3, an decline from the EPS of Rs 12.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 228.0, stands at 43.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.2 times, while the price to sales ratio stands at 3.9 times.
• The company's price to cash flow (P/CF) ratio stood at 47.6 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	76.8	59.1
TTM Earnings per share	Rs	12.4	5.3
Diluted earnings per share	Rs	12.4	5.3
Price to Cash Flow	x	15.4	47.6
TTM P/E ratio	x	16.7	43.8
Price / Book Value ratio	x	3.9	4.4
Market Cap	Rs m	30,369	36,262
Dividends per share (Unadj.)	Rs	0.8	0.8

Ratio Analysis for INDIA PESTICIDES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x during FY24, from 3.7x 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 23.0x during FY24, from 27.8x 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 7.4% during FY24, from 18.5% 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 10.6% during FY24, from 25.7% 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 6.4% during FY24, from 15.6% 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	3.7	3.7
Debtors’ Days	Days	108	13
Interest coverage	x	27.8	23.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.6	6.4
Return on equity	%	18.5	7.4
Return on capital employed	%	25.7	10.6

To see how INDIA PESTICIDES has performed over the last 5 years, please visit here.

INDIA PESTICIDES Share Price Performance

Over the last one year, INDIA PESTICIDES share price has moved up from Rs 221.8 to Rs 228.0, registering a gain of Rs 6.3 or around 2.8%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for INDIA PESTICIDES and quarterly results for INDIA PESTICIDES)