L.G.BALAKRISHNAN 2023-24 Annual Report Analysis

Tue, 6 Aug

L.G.BALAKRISHNAN 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.

L.G.BALAKRISHNAN Income Statement Analysis

• Operating income during the year rose 1.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 1.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.7% in FY24 as against 18.2% in FY23.
• Depreciation charges decreased by 8.5% and finance costs increased by 2.0% YoY, respectively.
• Other income grew by 89.5% YoY.
• Net profit for the year grew by 6.8% YoY.
• Net profit margins during the year grew from 11.5% in FY23 to 12.1% in FY24.

L.G.BALAKRISHNAN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,030	22,310	1.3%
Other income	Rs m	259	491	89.5%
Total Revenues	Rs m	22,289	22,802	2.3%
Gross profit	Rs m	4,016	3,940	-1.9%
Depreciation	Rs m	795	727	-8.5%
Interest	Rs m	77	79	2.0%
Profit before tax	Rs m	3,403	3,626	6.5%
Tax	Rs m	880	931	5.8%
Profit after tax	Rs m	2,523	2,695	6.8%
Gross profit margin	%	18.2	17.7
Effective tax rate	%	25.9	25.7
Net profit margin	%	11.5	12.1

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L.G.BALAKRISHNAN Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 11.9%.
• Long-term debt down at Rs 90 million as compared to Rs 168 million during FY23, a fall of 46.7%.
• Current assets rose 0% and stood at Rs 11 billion, while fixed assets rose 37% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 16%.

L.G.BALAKRISHNAN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,653	16,019	17.3
Current Liabilities	Rs m	4,460	4,991	11.9
Long-term Debt	Rs m	168	90	-46.7
Total Liabilities	Rs m	18,731	21,719	16.0
Current assets	Rs m	10,547	10,588	0.4
Fixed Assets	Rs m	8,103	11,130	37.4
Total Assets	Rs m	18,731	21,719	16.0

L.G.BALAKRISHNAN Cash Flow Statement Analysis

• L.G.BALAKRISHNAN's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 107.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 94.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -428 million, an improvement of 26% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -24 million from the Rs -484 million net cash flows seen during FY23.

L.G.BALAKRISHNAN 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	1,667	3,456	107.3%
Cash Flow from Investing Activities	Rs m	-1,573	-3,052	-
Cash Flow from Financing Activities	Rs m	-578	-428	-
Net Cash Flow	Rs m	-484	-24	-

Current Valuations for L.G.BALAKRISHNAN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 85.9, an improvement from the EPS of Rs 80.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,306.0, stands at 14.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.9 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	701.8	710.7
TTM Earnings per share	Rs	80.4	85.9
Diluted earnings per share	Rs	80.4	85.8
Price to Cash Flow	x	7.0	9.9
TTM P/E ratio	x	9.2	14.6
Price / Book Value ratio	x	1.5	2.1
Market Cap	Rs m	20,626	33,810
Dividends per share (Unadj.)	Rs	16.0	18.0

Ratio Analysis for L.G.BALAKRISHNAN

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY24, from 2.4x 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 47.0x during FY24, from 45.1x 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 16.8% during FY24, from 18.5% 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 23.0% during FY24, from 25.2% 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 12.8% during FY24, from 13.9% 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	2.4	2.1
Debtors’ Days	Days	451	458
Interest coverage	x	45.1	47.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.9	12.8
Return on equity	%	18.5	16.8
Return on capital employed	%	25.2	23.0

To see how L.G.BALAKRISHNAN has performed over the last 5 years, please visit here.

L.G.BALAKRISHNAN Share Price Performance

Over the last one year, L.G.BALAKRISHNAN share price has moved up from Rs 1,024.3 to Rs 1,306.0, registering a gain of Rs 281.8 or around 27.5%.

Overall, the S&P BSE SENSEX is up 21.1% over the year.

(To know more, check out historical annual results for L.G.BALAKRISHNAN and quarterly results for L.G.BALAKRISHNAN)