LAKSHMI MACHINE 2023-24 Annual Report Analysis

Mon, 8 Jul

LAKSHMI MACHINE 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.

LAKSHMI MACHINE Income Statement Analysis

• Operating income during the year fell 0.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY24 as against 9.5% in FY23.
• Depreciation charges increased by 23.9% increased by 0.0% YoY, respectively.
• Other income declined by 2.9% YoY.
• Net profit for the year declined by 2.7% YoY.
• Net profit margins during the year declined from 8.1% in FY23 to 8.0% in FY24.

LAKSHMI MACHINE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	47,192	46,959	-0.5%
Other income	Rs m	1,478	1,435	-2.9%
Total Revenues	Rs m	48,670	48,394	-0.6%
Gross profit	Rs m	4,491	4,350	-3.2%
Depreciation	Rs m	777	963	23.9%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	5,192	4,822	-7.1%
Tax	Rs m	1,352	1,085	-19.7%
Profit after tax	Rs m	3,840	3,737	-2.7%
Gross profit margin	%	9.5	9.3
Effective tax rate	%	26.0	22.5
Net profit margin	%	8.1	8.0

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LAKSHMI MACHINE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 13 billion as compared to Rs 15 billion in FY23, thereby witnessing an decrease of -13.6%.
• Current assets rose 6% and stood at Rs 25 billion, while fixed assets fell 4% and stood at Rs 18 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 43 billion as against Rs 42 billion during FY23, thereby witnessing a growth of 1%.

LAKSHMI MACHINE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,386	27,036	15.6
Current Liabilities	Rs m	14,789	12,777	-13.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	42,001	42,513	1.2
Current assets	Rs m	23,621	24,927	5.5
Fixed Assets	Rs m	18,380	17,587	-4.3
Total Assets	Rs m	42,001	42,513	1.2

LAKSHMI MACHINE Cash Flow Statement Analysis

• LAKSHMI MACHINE's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -741 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -390 million from the Rs 789 million net cash flows seen during FY23.

LAKSHMI MACHINE 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	3,641	1,406	-61.4%
Cash Flow from Investing Activities	Rs m	-2,422	-741	-
Cash Flow from Financing Activities	Rs m	-430	-1,055	-
Net Cash Flow	Rs m	789	-390	-

Current Valuations for LAKSHMI MACHINE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 349.9, an decline from the EPS of Rs 359.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16,601.2, stands at 47.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 29.2 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	4,418.7	4,396.9
TTM Earnings per share	Rs	359.6	349.9
Diluted earnings per share	Rs	359.5	349.8
Price to Cash Flow	x	23.1	29.2
TTM P/E ratio	x	27.7	47.5
Price / Book Value ratio	x	5.1	5.1
Market Cap	Rs m	118,897	137,264
Dividends per share (Unadj.)	Rs	98.5	75.0

Ratio Analysis for LAKSHMI MACHINE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.6x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 13.8% during FY24, from 16.4% 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 declined and down at 17.8% during FY24, from 22.2% 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 8.8% during FY24, from 9.1% 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	1.6	2.0
Debtors’ Days	Days	2	1
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.1	8.8
Return on equity	%	16.4	13.8
Return on capital employed	%	22.2	17.8

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

LAKSHMI MACHINE Share Price Performance

Over the last one year, LAKSHMI MACHINE share price has moved up from Rs 13,561.0 to Rs 16,601.2, registering a gain of Rs 3,040.2 or around 22.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,397.1 (up 0.4%). Over the last one year it has moved up from 40,670.4 to 75,397.1, a gain of 34,727 points (up 85.4%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

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