IRIS CLOTHINGS 2023-24 Annual Report Analysis

Tue, 19 Nov

IRIS CLOTHINGS 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.

IRIS CLOTHINGS Income Statement Analysis

• Operating income during the year rose 7.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.6% in FY24 as against 17.1% in FY23.
• Depreciation charges increased by 14.9% and finance costs increased by 28.2% YoY, respectively.
• Other income declined by 20.8% YoY.
• Net profit for the year grew by 47.9% YoY.
• Net profit margins during the year grew from 7.3% in FY23 to 10.0% in FY24.

IRIS CLOTHINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,130	1,219	7.9%
Other income	Rs m	2	1	-20.8%
Total Revenues	Rs m	1,132	1,220	7.9%
Gross profit	Rs m	193	263	35.9%
Depreciation	Rs m	53	61	14.9%
Interest	Rs m	30	38	28.2%
Profit before tax	Rs m	112	165	47.2%
Tax	Rs m	29	43	45.3%
Profit after tax	Rs m	83	122	47.9%
Gross profit margin	%	17.1	21.6
Effective tax rate	%	26.3	26.0
Net profit margin	%	7.3	10.0

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IRIS CLOTHINGS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 553 million as compared to Rs 465 million in FY23, thereby witnessing an increase of 18.8%.
• Current assets rose 28% and stood at Rs 1 billion, while fixed assets rose 3% and stood at Rs 290 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 22%.

IRIS CLOTHINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	570	692	21.4
Current Liabilities	Rs m	465	553	18.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,085	1,320	21.7
Current assets	Rs m	804	1,031	28.1
Fixed Assets	Rs m	280	290	3.4
Total Assets	Rs m	1,085	1,320	21.7

IRIS CLOTHINGS Cash Flow Statement Analysis

• IRIS CLOTHINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 17 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -27 million, an improvement of 31.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 10 million, an improvement of 6,525% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY23.

IRIS CLOTHINGS 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	21	17	-17.1%
Cash Flow from Investing Activities	Rs m	-21	-27	-
Cash Flow from Financing Activities	Rs m	0	10	-
Net Cash Flow	Rs m	0	0	-

Current Valuations for IRIS CLOTHINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.5, an decline from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 66.3, stands at 46.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 4.4 times.
• The company's price to cash flow (P/CF) ratio stood at 123.2 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	69.3	14.9
TTM Earnings per share	Rs	5.1	1.5
Diluted earnings per share	Rs	1.0	1.5
Price to Cash Flow	x	0.0	123.2
TTM P/E ratio	x	0.0	46.0
Price / Book Value ratio	x	7.3	32.6
Market Cap	Rs m	4,144	22,554
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IRIS CLOTHINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.7x 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 improved and stood at 5.3x during FY24, from 4.7x 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 17.7% during FY24, from 14.5% 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 improved and stood at 29.4% during FY24, from 24.9% 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 improved and stood at 12.2% during FY24, from 10.4% 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	1.7	1.9
Debtors’ Days	Days	1,009	1,086
Interest coverage	x	4.7	5.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.4	12.2
Return on equity	%	14.5	17.7
Return on capital employed	%	24.9	29.4

To see how IRIS CLOTHINGS has performed over the last 5 years, please visit here.

IRIS CLOTHINGS Share Price Performance

Over the last one year, IRIS CLOTHINGS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 1.4% over the year.

(To know more, check out historical annual results for IRIS CLOTHINGS and quarterly results for IRIS CLOTHINGS)