IRCON INTERNATIONAL 2023-24 Annual Report Analysis

Sun, 18 Aug

IRCON INTERNATIONAL 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.

IRCON INTERNATIONAL Income Statement Analysis

• Operating income during the year rose 18.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 39.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.5% in FY24 as against 4.7% in FY23.
• Depreciation charges decreased by 6.5% and finance costs decreased by 14.7% YoY, respectively.
• Other income grew by 15.5% YoY.
• Net profit for the year grew by 21.5% YoY.
• Net profit margins during the year grew from 7.4% in FY23 to 7.5% in FY24.

IRCON INTERNATIONAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	103,679	123,309	18.9%
Other income	Rs m	8,221	9,492	15.5%
Total Revenues	Rs m	111,901	132,802	18.7%
Gross profit	Rs m	4,847	6,755	39.4%
Depreciation	Rs m	1,075	1,004	-6.5%
Interest	Rs m	3,084	2,632	-14.7%
Profit before tax	Rs m	8,910	12,611	41.5%
Tax	Rs m	1,258	3,316	163.7%
Profit after tax	Rs m	7,652	9,295	21.5%
Gross profit margin	%	4.7	5.5
Effective tax rate	%	14.1	26.3
Net profit margin	%	7.4	7.5

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

IRCON INTERNATIONAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 71 billion as compared to Rs 73 billion in FY23, thereby witnessing an decrease of -2.0%.
• Long-term debt stood at Rs 25 billion as compared to Rs 14 billion during FY23, a growth of 70.6%.
• Current assets rose 8% and stood at Rs 120 billion, while fixed assets rose 24% and stood at Rs 53 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 173 billion as against Rs 154 billion during FY23, thereby witnessing a growth of 12%.

IRCON INTERNATIONAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	52,115	58,709	12.7
Current Liabilities	Rs m	72,654	71,230	-2.0
Long-term Debt	Rs m	14,403	24,567	70.6
Total Liabilities	Rs m	154,280	173,254	12.3
Current assets	Rs m	111,444	119,988	7.7
Fixed Assets	Rs m	42,829	53,266	24.4
Total Assets	Rs m	154,280	173,254	12.3

IRCON INTERNATIONAL Cash Flow Statement Analysis

• IRCON INTERNATIONAL's cash flow from operating activities (CFO) during FY24 stood at Rs -786 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 6 billion, an improvement of 386% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 11 billion net cash flows seen during FY23.

IRCON INTERNATIONAL 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	-2,779	-786	-
Cash Flow from Investing Activities	Rs m	15,780	-7,055	-
Cash Flow from Financing Activities	Rs m	-2,234	6,401	-
Net Cash Flow	Rs m	10,803	-1,583	-

Current Valuations for IRCON INTERNATIONAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an improvement from the EPS of Rs 8.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 266.8, stands at 27.7 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 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 15.4 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	110.2	131.1
TTM Earnings per share	Rs	8.1	9.9
Diluted earnings per share	Rs	8.1	9.9
Price to Cash Flow	x	6.0	15.4
TTM P/E ratio	x	7.2	27.7
Price / Book Value ratio	x	0.9	2.7
Market Cap	Rs m	47,778	158,326
Dividends per share (Unadj.)	Rs	3.0	3.1

Ratio Analysis for IRCON INTERNATIONAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 improved and stood at 5.8x during FY24, from 3.9x 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 15.8% during FY24, from 14.7% 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 18.3% during FY24, from 18.0% 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 6.9% during FY24, from 7.0% 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	1.5	1.7
Debtors’ Days	Days	3	2
Interest coverage	x	3.9	5.8
Debt to equity ratio	x	0.3	0.4
Return on assets	%	7.0	6.9
Return on equity	%	14.7	15.8
Return on capital employed	%	18.0	18.3

To see how IRCON INTERNATIONAL has performed over the last 5 years, please visit here.

IRCON INTERNATIONAL Share Price Performance

Over the last one year, IRCON INTERNATIONAL share price has moved up from Rs 100.2 to Rs 266.8, registering a gain of Rs 166.6 or around 166.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,847.6 (up 1.8%). Over the last one year it has moved up from 43,172.9 to 72,847.6, a gain of 29,675 points (up 68.7%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for IRCON INTERNATIONAL and quarterly results for IRCON INTERNATIONAL)