LAKSHMI MILLS 2023-24 Annual Report Analysis

Wed, 21 Aug

LAKSHMI MILLS 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 MILLS Income Statement Analysis

• Operating income during the year rose 5.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 95.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.1% in FY24 as against 2.3% in FY23.
• Depreciation charges increased by 123.9% and finance costs increased by 47.2% YoY, respectively.
• Other income grew by 145.0% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 2.1% in FY23 to 5.5% in FY24.

LAKSHMI MILLS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,404	2,530	5.2%
Other income	Rs m	40	99	145.0%
Total Revenues	Rs m	2,445	2,629	7.5%
Gross profit	Rs m	55	3	-95.4%
Depreciation	Rs m	82	184	123.9%
Interest	Rs m	81	120	47.2%
Profit before tax	Rs m	-68	-202	NA
Tax	Rs m	-18	-64	NA
Profit after tax	Rs m	-50	-138	NA
Gross profit margin	%	2.3	0.1
Effective tax rate	%	26.1	31.7
Net profit margin	%	-2.1	-5.5

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LAKSHMI MILLS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 969 million in FY23, thereby witnessing an increase of 14.7%.
• Long-term debt stood at Rs 739 million as compared to Rs 472 million during FY23, a growth of 56.5%.
• Current assets fell 2% and stood at Rs 646 million, while fixed assets rose 39% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 8 billion during FY23, thereby witnessing a growth of 36%.

LAKSHMI MILLS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,410	8,687	35.5
Current Liabilities	Rs m	969	1,111	14.7
Long-term Debt	Rs m	472	739	56.5
Total Liabilities	Rs m	8,215	11,169	35.9
Current assets	Rs m	656	646	-1.5
Fixed Assets	Rs m	7,559	10,522	39.2
Total Assets	Rs m	8,215	11,169	35.9

LAKSHMI MILLS Cash Flow Statement Analysis

• LAKSHMI MILLS's cash flow from operating activities (CFO) during FY24 stood at Rs 158 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -380 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 226 million, an improvement of 21% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 million from the Rs -1 million net cash flows seen during FY23.

LAKSHMI MILLS 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	377	158	-58.1%
Cash Flow from Investing Activities	Rs m	-565	-380	-
Cash Flow from Financing Activities	Rs m	187	226	20.9%
Net Cash Flow	Rs m	-1	4	-

Current Valuations for LAKSHMI MILLS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -197.0, an decline from the EPS of Rs -71.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 6,118.0, stands at -46.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 59.0 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	3,434.3	3,613.8
TTM Earnings per share	Rs	-71.6	-197.0
Diluted earnings per share	Rs	-72.1	-198.3
Price to Cash Flow	x	80.2	59.0
TTM P/E ratio	x	-51.5	-46.2
Price / Book Value ratio	x	0.5	0.3
Market Cap	Rs m	2,888	2,735
Dividends per share (Unadj.)	Rs	9.0	0.0

Ratio Analysis for LAKSHMI MILLS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY24, from 0.7x 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 deteriorated and stood at -0.7x during FY24, from 0.2x 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 -1.6% during FY24, from -0.8% 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 -0.9% during FY24, from 0.2% 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 -0.2% during FY24, from 0.4% 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	0.7	0.6
Debtors’ Days	Days	195	323
Interest coverage	x	0.2	-0.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	0.4	-0.2
Return on equity	%	-0.8	-1.6
Return on capital employed	%	0.2	-0.9

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

LAKSHMI MILLS Share Price Performance

Over the last one year, LAKSHMI MILLS share price has moved up from Rs 3,922.5 to Rs 6,118.0, registering a gain of Rs 2,195.5 or around 56.0%.

Overall, the S&P BSE SENSEX is up 23.8% over the year.

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