LANCER CONTAINER LINES 2023-24 Annual Report Analysis

Tue, 3 Sep

LANCER CONTAINER LINES 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.

LANCER CONTAINER LINES Income Statement Analysis

• Operating income during the year fell 24.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.9% in FY24 as against 10.7% in FY23.
• Depreciation charges increased by 22.0% and finance costs decreased by 7.7% YoY, respectively.
• Other income grew by 60.3% YoY.
• Net profit for the year grew by 8.6% YoY.
• Net profit margins during the year grew from 6.4% in FY23 to 9.2% in FY24.

LANCER CONTAINER LINES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,372	6,334	-24.3%
Other income	Rs m	84	134	60.3%
Total Revenues	Rs m	8,456	6,468	-23.5%
Gross profit	Rs m	898	883	-1.7%
Depreciation	Rs m	167	204	22.0%
Interest	Rs m	127	117	-7.7%
Profit before tax	Rs m	688	697	1.2%
Tax	Rs m	151	113	-25.1%
Profit after tax	Rs m	537	584	8.6%
Gross profit margin	%	10.7	13.9
Effective tax rate	%	21.9	16.2
Net profit margin	%	6.4	9.2

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

LANCER CONTAINER LINES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 661 million as compared to Rs 667 million in FY23, thereby witnessing an decrease of -0.9%.
• Long-term debt down at Rs 937 million as compared to Rs 3 billion during FY23, a fall of 64.6%.
• Current assets rose 12% and stood at Rs 2 billion, while fixed assets rose 5% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 7%.

LANCER CONTAINER LINES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,833	4,003	118.4
Current Liabilities	Rs m	667	661	-0.9
Long-term Debt	Rs m	2,644	937	-64.6
Total Liabilities	Rs m	5,264	5,619	6.7
Current assets	Rs m	1,459	1,628	11.6
Fixed Assets	Rs m	3,804	3,991	4.9
Total Assets	Rs m	5,264	5,619	6.7

LANCER CONTAINER LINES Cash Flow Statement Analysis

• LANCER CONTAINER LINES's cash flow from operating activities (CFO) during FY24 stood at Rs 432 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -403 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -85 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -56 million from the Rs -73 million net cash flows seen during FY23.

LANCER CONTAINER LINES 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	-2,235	432	-
Cash Flow from Investing Activities	Rs m	-612	-403	-
Cash Flow from Financing Activities	Rs m	2,773	-85	-
Net Cash Flow	Rs m	-73	-56	-

Current Valuations for LANCER CONTAINER LINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.6, an decline from the EPS of Rs 8.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 46.7, stands at 19.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 21.8 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	136.0	27.7
TTM Earnings per share	Rs	8.7	2.6
Diluted earnings per share	Rs	2.3	2.5
Price to Cash Flow	x	15.7	21.8
TTM P/E ratio	x	20.6	19.8
Price / Book Value ratio	x	5.7	4.3
Market Cap	Rs m	10,440	17,171
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LANCER CONTAINER LINES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.2x 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 7.0x during FY24, from 6.4x 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 14.6% during FY24, from 29.3% 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 16.5% during FY24, from 18.2% 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 12.5% during FY24, from 12.6% 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	2.2	2.5
Debtors’ Days	Days	410	648
Interest coverage	x	6.4	7.0
Debt to equity ratio	x	1.4	0.2
Return on assets	%	12.6	12.5
Return on equity	%	29.3	14.6
Return on capital employed	%	18.2	16.5

To see how LANCER CONTAINER LINES has performed over the last 5 years, please visit here.

LANCER CONTAINER LINES Share Price Performance

Over the last one year, LANCER CONTAINER LINES share price has moved down from Rs 86.5 to Rs 46.7, registering a loss of Rs 39.8 or around 46.0%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for LANCER CONTAINER LINES and quarterly results for LANCER CONTAINER LINES)