LOKESH MACHINES 2023-24 Annual Report Analysis

Mon, 14 Oct

LOKESH MACHINES 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.

LOKESH MACHINES Income Statement Analysis

• Operating income during the year rose 22.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 33.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.6% in FY24 as against 15.2% in FY23.
• Depreciation charges increased by 9.8% and finance costs increased by 6.9% YoY, respectively.
• Other income declined by 60.0% YoY.
• Net profit for the year grew by 43.1% YoY.
• Net profit margins during the year grew from 4.9% in FY23 to 5.7% in FY24.

LOKESH MACHINES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,981	2,428	22.5%
Other income	Rs m	42	17	-60.0%
Total Revenues	Rs m	2,023	2,444	20.8%
Gross profit	Rs m	301	403	33.8%
Depreciation	Rs m	91	100	9.8%
Interest	Rs m	107	115	6.9%
Profit before tax	Rs m	145	206	41.7%
Tax	Rs m	48	67	38.7%
Profit after tax	Rs m	97	138	43.1%
Gross profit margin	%	15.2	16.6
Effective tax rate	%	33.3	32.6
Net profit margin	%	4.9	5.7

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LOKESH MACHINES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -0.3%.
• Long-term debt stood at Rs 453 million as compared to Rs 206 million during FY23, a growth of 120.1%.
• Current assets rose 8% and stood at Rs 2 billion, while fixed assets rose 33% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 20%.

LOKESH MACHINES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,590	1,869	17.5
Current Liabilities	Rs m	1,330	1,327	-0.3
Long-term Debt	Rs m	206	453	120.1
Total Liabilities	Rs m	3,264	3,906	19.7
Current assets	Rs m	1,741	1,876	7.8
Fixed Assets	Rs m	1,523	2,030	33.3
Total Assets	Rs m	3,264	3,906	19.7

LOKESH MACHINES Cash Flow Statement Analysis

• LOKESH MACHINES's cash flow from operating activities (CFO) during FY24 stood at Rs 174 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -596 million, an improvement of 170.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 421 million, an improvement of 539% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 0 million from the Rs 0 million net cash flows seen during FY23.

LOKESH MACHINES 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	316	174	-44.9%
Cash Flow from Investing Activities	Rs m	-220	-596	-
Cash Flow from Financing Activities	Rs m	-96	421	-
Net Cash Flow	Rs m	0	0	-

Current Valuations for LOKESH MACHINES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an improvement from the EPS of Rs 5.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 407.6, stands at 53.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 20.1 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	110.7	131.2
TTM Earnings per share	Rs	5.4	7.5
Diluted earnings per share	Rs	5.2	7.5
Price to Cash Flow	x	10.9	20.1
TTM P/E ratio	x	21.0	53.4
Price / Book Value ratio	x	1.2	2.6
Market Cap	Rs m	1,874	4,799
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LOKESH MACHINES

• 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 2.8x during FY24, from 2.4x 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 improved and stood at 7.4% during FY24, from 6.1% 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 13.8% during FY24, from 14.1% 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 6.5% during FY24, from 6.3% 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	752	728
Interest coverage	x	2.4	2.8
Debt to equity ratio	x	0.1	0.2
Return on assets	%	6.3	6.5
Return on equity	%	6.1	7.4
Return on capital employed	%	14.1	13.8

To see how LOKESH MACHINES has performed over the last 5 years, please visit here.

LOKESH MACHINES Share Price Performance

Over the last one year, LOKESH MACHINES share price has moved up from Rs 230.7 to Rs 407.6, registering a gain of Rs 176.9 or around 76.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,061.2 (up 0.7%). Over the last one year it has moved up from 47,898.9 to 72,061.2, a gain of 24,162 points (up 50.4%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

(To know more, check out historical annual results for LOKESH MACHINES and quarterly results for LOKESH MACHINES)