IST 2023-24 Annual Report Analysis

Mon, 23 Sep

IST 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.

IST Income Statement Analysis

• Operating income during the year fell 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 75.4% in FY24 as against 61.9% in FY23.
• Depreciation charges increased by 1.5% and finance costs decreased by 14.4% YoY, respectively.
• Other income grew by 130.5% YoY.
• Net profit for the year grew by 54.2% YoY.
• Net profit margins during the year grew from 67.5% in FY23 to 114.9% in FY24.

IST Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,211	1,097	-9.4%
Other income	Rs m	413	953	130.5%
Total Revenues	Rs m	1,624	2,050	26.2%
Gross profit	Rs m	749	827	10.4%
Depreciation	Rs m	52	52	1.5%
Interest	Rs m	39	33	-14.4%
Profit before tax	Rs m	1,072	1,694	58.0%
Tax	Rs m	255	434	70.2%
Profit after tax	Rs m	817	1,260	54.2%
Gross profit margin	%	61.9	75.4
Effective tax rate	%	23.8	25.6
Net profit margin	%	67.5	114.9

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IST Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 385 million as compared to Rs 597 million in FY23, thereby witnessing an decrease of -35.4%.
• Current assets rose 40% and stood at Rs 2 billion, while fixed assets rose 15% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 17%.

IST Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,094	13,124	18.3
Current Liabilities	Rs m	597	385	-35.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	11,972	14,061	17.4
Current assets	Rs m	1,247	1,748	40.2
Fixed Assets	Rs m	10,725	12,313	14.8
Total Assets	Rs m	11,972	14,061	17.4

IST Cash Flow Statement Analysis

• IST's cash flow from operating activities (CFO) during FY24 stood at Rs 54 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -166 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -120 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -232 million from the Rs 133 million net cash flows seen during FY23.

IST 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	1,139	54	-95.3%
Cash Flow from Investing Activities	Rs m	-986	-166	-
Cash Flow from Financing Activities	Rs m	-20	-120	-
Net Cash Flow	Rs m	133	-232	-

Current Valuations for IST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 108.1, an improvement from the EPS of Rs 70.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,100.0, stands at 9.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 11.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 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	103.8	94.0
TTM Earnings per share	Rs	70.1	108.1
Diluted earnings per share	Rs	70.1	108.0
Price to Cash Flow	x	5.6	6.5
TTM P/E ratio	x	6.0	9.1
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	5,686	8,544
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.5x during FY24, from 2.1x 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 52.2x during FY24, from 28.7x 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 9.6% during FY24, from 7.4% 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 improved and stood at 13.2% during FY24, from 10.0% 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 improved and stood at 9.2% during FY24, from 7.1% 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	2.1	4.5
Debtors’ Days	Days	208	256
Interest coverage	x	28.7	52.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.1	9.2
Return on equity	%	7.4	9.6
Return on capital employed	%	10.0	13.2

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

IST Share Price Performance

Over the last one year, IST share price has moved up from Rs 731.2 to Rs 1,100.0, registering a gain of Rs 368.9 or around 50.4%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

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