LAWRESHWAR POLYMERS 2023-24 Annual Report Analysis

Wed, 21 Aug

LAWRESHWAR POLYMERS 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.

LAWRESHWAR POLYMERS Income Statement Analysis

• Operating income during the year fell 4.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.4% in FY24 as against 7.2% in FY23.
• Depreciation charges increased by 25.1% and finance costs increased by 11.3% YoY, respectively.
• Other income grew by 8.9% YoY.
• Net profit for the year grew by 27.8% YoY.
• Net profit margins during the year grew from 2.5% in FY23 to 3.4% in FY24.

LAWRESHWAR POLYMERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,025	1,943	-4.1%
Other income	Rs m	8	8	8.9%
Total Revenues	Rs m	2,033	1,951	-4.0%
Gross profit	Rs m	145	183	26.0%
Depreciation	Rs m	35	43	25.1%
Interest	Rs m	53	59	11.3%
Profit before tax	Rs m	65	89	36.5%
Tax	Rs m	14	23	68.0%
Profit after tax	Rs m	51	66	27.8%
Gross profit margin	%	7.2	9.4
Effective tax rate	%	21.4	26.3
Net profit margin	%	2.5	3.4

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

LAWRESHWAR POLYMERS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 983 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -11.9%.
• Long-term debt down at Rs 108 million as compared to Rs 149 million during FY23, a fall of 27.6%.
• Current assets fell 5% and stood at Rs 1 billion, while fixed assets rose 3% and stood at Rs 822 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a fall of 2%.

LAWRESHWAR POLYMERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	862	1,023	18.6
Current Liabilities	Rs m	1,116	983	-11.9
Long-term Debt	Rs m	149	108	-27.6
Total Liabilities	Rs m	2,245	2,202	-1.9
Current assets	Rs m	1,449	1,379	-4.8
Fixed Assets	Rs m	795	822	3.4
Total Assets	Rs m	2,245	2,202	-1.9

LAWRESHWAR POLYMERS Cash Flow Statement Analysis

• LAWRESHWAR POLYMERS's cash flow from operating activities (CFO) during FY24 stood at Rs 18 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -57 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 32 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -7 million from the Rs -14 million net cash flows seen during FY23.

LAWRESHWAR POLYMERS 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	-21	18	-
Cash Flow from Investing Activities	Rs m	-140	-57	-
Cash Flow from Financing Activities	Rs m	148	32	-78.1%
Net Cash Flow	Rs m	-14	-7	-

Current Valuations for LAWRESHWAR POLYMERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.7, an improvement from the EPS of Rs 3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 262.2, stands at 69.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 20.6 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	129.3	109.9
TTM Earnings per share	Rs	3.3	3.7
Diluted earnings per share	Rs	2.9	3.7
Price to Cash Flow	x	15.5	20.6
TTM P/E ratio	x	26.0	69.6
Price / Book Value ratio	x	1.3	2.2
Market Cap	Rs m	1,137	2,245
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LAWRESHWAR POLYMERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.3x 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 2.5x during FY24, from 2.2x 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 improved and stood at 6.4% during FY24, from 5.9% 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 13.1% during FY24, from 11.7% 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 5.7% during FY24, from 4.7% 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	1.3	1.4
Debtors’ Days	Days	1,355	973
Interest coverage	x	2.2	2.5
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.7	5.7
Return on equity	%	5.9	6.4
Return on capital employed	%	11.7	13.1

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

LAWRESHWAR POLYMERS Share Price Performance

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