ADC INDIA COMM. 2023-24 Annual Report Analysis

Wed, 24 Jul

ADC INDIA COMM. 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.

ADC INDIA COMM. Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 78.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY24 as against 7.2% in FY23.
• Depreciation charges increased by 1.4% and finance costs decreased by 69.0% YoY, respectively.
• Other income grew by 783.6% YoY.
• Net profit for the year grew by 153.0% YoY.
• Net profit margins during the year grew from 5.7% in FY23 to 11.6% in FY24.

ADC INDIA COMM. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,429	1,787	25.1%
Other income	Rs m	11	97	783.6%
Total Revenues	Rs m	1,440	1,885	30.9%
Gross profit	Rs m	102	183	78.3%
Depreciation	Rs m	2	2	1.4%
Interest	Rs m	1	0	-69.0%
Profit before tax	Rs m	110	277	151.1%
Tax	Rs m	29	71	145.7%
Profit after tax	Rs m	82	207	153.0%
Gross profit margin	%	7.2	10.2
Effective tax rate	%	26.0	25.4
Net profit margin	%	5.7	11.6

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ADC INDIA COMM. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 324 million as compared to Rs 300 million in FY23, thereby witnessing an increase of 8.2%.
• Current assets rose 31% and stood at Rs 965 million, while fixed assets rose 35% and stood at Rs 204 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 887 million during FY23, thereby witnessing a growth of 32%.

ADC INDIA COMM. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	520	709	36.3
Current Liabilities	Rs m	300	324	8.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	887	1,169	31.9
Current assets	Rs m	736	965	31.2
Fixed Assets	Rs m	151	204	35.1
Total Assets	Rs m	887	1,169	31.9

ADC INDIA COMM. Cash Flow Statement Analysis

• ADC INDIA COMM.'s cash flow from operating activities (CFO) during FY24 stood at Rs 194 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 14 million, an improvement of 98.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -18 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 190 million from the Rs -99 million net cash flows seen during FY23.

ADC INDIA COMM. 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	-42	194	-
Cash Flow from Investing Activities	Rs m	7	14	98.2%
Cash Flow from Financing Activities	Rs m	-64	-18	-
Net Cash Flow	Rs m	-99	190	-

Current Valuations for ADC INDIA COMM.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 45.0, an improvement from the EPS of Rs 17.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,001.8, stands at 44.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.0 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.7 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	310.7	388.6
TTM Earnings per share	Rs	17.8	45.0
Diluted earnings per share	Rs	17.8	45.0
Price to Cash Flow	x	31.9	18.7
TTM P/E ratio	x	32.8	44.5
Price / Book Value ratio	x	3.9	5.5
Market Cap	Rs m	2,012	3,911
Dividends per share (Unadj.)	Rs	4.0	30.0

Ratio Analysis for ADC INDIA COMM.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.0x during FY24, from 2.5x 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 1,028.7x during FY24, from 128.0x 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 29.2% during FY24, from 15.7% 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 39.2% during FY24, from 21.4% 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 17.7% during FY24, from 9.3% 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	2.5	3.0
Debtors’ Days	Days	507	573
Interest coverage	x	128.0	1,028.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	17.7
Return on equity	%	15.7	29.2
Return on capital employed	%	21.4	39.2

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

ADC INDIA COMM. Share Price Performance

Over the last one year, ADC INDIA COMM. share price has moved up from Rs 915.8 to Rs 2,001.8, registering a gain of Rs 1,086.0 or around 118.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 18,626.5 (down 0.2%). Over the last one year it has moved up from 13,572.7 to 18,626.5, a gain of 5,054 points (up 37.2%).

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for ADC INDIA COMM. and quarterly results for ADC INDIA COMM.)