LIKHITHA INFRASTRUCTURE 2023-24 Annual Report Analysis

Mon, 23 Sep

LIKHITHA INFRASTRUCTURE 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.

LIKHITHA INFRASTRUCTURE Income Statement Analysis

• Operating income during the year rose 15.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.2% in FY24 as against 22.8% in FY23.
• Depreciation charges increased by 51.3% and finance costs increased by 72.7% YoY, respectively.
• Other income grew by 22.2% YoY.
• Net profit for the year grew by 8.2% YoY.
• Net profit margins during the year declined from 16.5% in FY23 to 15.5% in FY24.

LIKHITHA INFRASTRUCTURE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,650	4,217	15.5%
Other income	Rs m	42	52	22.2%
Total Revenues	Rs m	3,692	4,269	15.6%
Gross profit	Rs m	831	936	12.6%
Depreciation	Rs m	51	77	51.3%
Interest	Rs m	8	14	72.7%
Profit before tax	Rs m	815	897	10.1%
Tax	Rs m	212	244	15.5%
Profit after tax	Rs m	603	652	8.2%
Gross profit margin	%	22.8	22.2
Effective tax rate	%	26.0	27.3
Net profit margin	%	16.5	15.5

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LIKHITHA INFRASTRUCTURE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 391 million as compared to Rs 447 million in FY23, thereby witnessing an decrease of -12.3%.
• Current assets rose 26% and stood at Rs 3 billion, while fixed assets fell 25% and stood at Rs 319 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 18%.

LIKHITHA INFRASTRUCTURE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,501	3,095	23.8
Current Liabilities	Rs m	447	391	-12.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,954	3,492	18.2
Current assets	Rs m	2,528	3,172	25.5
Fixed Assets	Rs m	426	319	-25.1
Total Assets	Rs m	2,954	3,492	18.2

LIKHITHA INFRASTRUCTURE Cash Flow Statement Analysis

• LIKHITHA INFRASTRUCTURE's cash flow from operating activities (CFO) during FY24 stood at Rs 206 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 133 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -69 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 269 million from the Rs 156 million net cash flows seen during FY23.

LIKHITHA INFRASTRUCTURE 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	314	206	-34.5%
Cash Flow from Investing Activities	Rs m	-130	133	-
Cash Flow from Financing Activities	Rs m	-27	-69	-
Net Cash Flow	Rs m	156	269	71.6%

Current Valuations for LIKHITHA INFRASTRUCTURE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.5, an improvement from the EPS of Rs 15.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 396.4, stands at 23.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.1 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 15.5 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	92.5	106.9
TTM Earnings per share	Rs	15.3	16.5
Diluted earnings per share	Rs	15.3	16.5
Price to Cash Flow	x	14.2	15.5
TTM P/E ratio	x	15.4	23.6
Price / Book Value ratio	x	3.1	3.7
Market Cap	Rs m	7,732	11,316
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for LIKHITHA INFRASTRUCTURE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 8.1x during FY24, from 5.7x 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 65.8x during FY24, from 102.7x 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 21.1% during FY24, from 24.1% 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 29.4% during FY24, from 32.9% 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 19.1% during FY24, from 20.7% 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	5.7	8.1
Debtors’ Days	Days	901	661
Interest coverage	x	102.7	65.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.7	19.1
Return on equity	%	24.1	21.1
Return on capital employed	%	32.9	29.4

To see how LIKHITHA INFRASTRUCTURE has performed over the last 5 years, please visit here.

LIKHITHA INFRASTRUCTURE Share Price Performance

Over the last one year, LIKHITHA INFRASTRUCTURE share price has moved up from Rs 307.7 to Rs 396.4, registering a gain of Rs 88.8 or around 28.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,907.8 (up 0.7%). Over the last one year it has moved up from 46,719.8 to 73,907.8, a gain of 27,188 points (up 58.2%).

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for LIKHITHA INFRASTRUCTURE and quarterly results for LIKHITHA INFRASTRUCTURE)