IRM ENERGY LTD. 2023-24 Annual Report Analysis

Thu, 11 Jul

IRM ENERGY 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.

IRM ENERGY LTD. Income Statement Analysis

• Operating income during the year fell 10.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.1% in FY24 as against 12.2% in FY23.
• Depreciation charges increased by 26.7% and finance costs increased by 16.6% YoY, respectively.
• Other income grew by 299.4% YoY.
• Net profit for the year grew by 62.1% YoY.
• Net profit margins during the year grew from 6.1% in FY23 to 11.1% in FY24.

IRM ENERGY LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,210	8,245	-10.5%
Other income	Rs m	60	238	299.4%
Total Revenues	Rs m	9,270	8,483	-8.5%
Gross profit	Rs m	1,122	1,489	32.6%
Depreciation	Rs m	209	265	26.7%
Interest	Rs m	229	267	16.6%
Profit before tax	Rs m	744	1,195	60.6%
Tax	Rs m	180	280	56.0%
Profit after tax	Rs m	564	915	62.1%
Gross profit margin	%	12.2	18.1
Effective tax rate	%	24.1	23.4
Net profit margin	%	6.1	11.1

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

IRM ENERGY LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 938 million in FY23, thereby witnessing an increase of 80.3%.
• Long-term debt down at Rs 1 billion as compared to Rs 3 billion during FY23, a fall of 59.9%.
• Current assets rose 156% and stood at Rs 6 billion, while fixed assets rose 27% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 13 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 64%.

IRM ENERGY LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,464	9,318	169.0
Current Liabilities	Rs m	938	1,692	80.3
Long-term Debt	Rs m	2,822	1,132	-59.9
Total Liabilities	Rs m	7,929	12,966	63.5
Current assets	Rs m	2,256	5,772	155.8
Fixed Assets	Rs m	5,673	7,194	26.8
Total Assets	Rs m	7,929	12,966	63.5

IRM ENERGY LTD. Cash Flow Statement Analysis

• IRM ENERGY LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 157.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 66.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 223% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -105 million net cash flows seen during FY23.

IRM ENERGY 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	467	1,203	157.8%
Cash Flow from Investing Activities	Rs m	-1,748	-2,912	-
Cash Flow from Financing Activities	Rs m	1,177	3,799	222.9%
Net Cash Flow	Rs m	-105	2,091	-

Current Valuations for IRM ENERGY LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.3, an improvement from the EPS of Rs 18.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 459.3, stands at 20.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 2.3 times.
• The company's price to cash flow (P/CF) ratio stood at 18.3 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	304.4	200.8
TTM Earnings per share	Rs	18.7	22.3
Diluted earnings per share	Rs	13.7	22.3
Price to Cash Flow	x	0.0	18.3
TTM P/E ratio	x	0.0	20.6
Price / Book Value ratio	x	0.0	2.3
Market Cap	Rs m	0	21,548
Dividends per share (Unadj.)	Rs	0.5	1.5

Ratio Analysis for IRM ENERGY LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.4x during FY24, from 2.4x 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 5.5x during FY24, from 4.2x 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 9.8% during FY24, from 16.3% 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 14.0% during FY24, from 15.5% 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 9.1% during FY24, from 10.0% 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	2.4	3.4
Debtors’ Days	Days	15	16
Interest coverage	x	4.2	5.5
Debt to equity ratio	x	0.8	0.1
Return on assets	%	10.0	9.1
Return on equity	%	16.3	9.8
Return on capital employed	%	15.5	14.0

To see how IRM ENERGY LTD. has performed over the last 5 years, please visit here.

IRM ENERGY LTD. Share Price Performance

Over the last one year, IRM ENERGY LTD. share price has moved up from Rs 0.0 to Rs 459.3, registering a gain of Rs 459.3 or around 0.0%.

Overall, the S&P BSE SENSEX is up 22.1% over the year.

(To know more, check out historical annual results for IRM ENERGY LTD. and quarterly results for IRM ENERGY LTD.)