LA OPALA RG 2023-24 Annual Report Analysis

Wed, 11 Sep

LA OPALA RG 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.

LA OPALA RG Income Statement Analysis

• Operating income during the year fell 19.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 18.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.1% in FY24 as against 36.6% in FY23.
• Depreciation charges decreased by 0.4% and finance costs decreased by 13.6% YoY, respectively.
• Other income grew by 55.6% YoY.
• Net profit for the year grew by 3.9% YoY.
• Net profit margins during the year grew from 27.2% in FY23 to 35.0% in FY24.

LA OPALA RG Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,523	3,651	-19.3%
Other income	Rs m	286	445	55.6%
Total Revenues	Rs m	4,809	4,096	-14.8%
Gross profit	Rs m	1,654	1,355	-18.1%
Depreciation	Rs m	218	217	-0.4%
Interest	Rs m	75	65	-13.6%
Profit before tax	Rs m	1,647	1,518	-7.9%
Tax	Rs m	417	240	-42.4%
Profit after tax	Rs m	1,230	1,277	3.9%
Gross profit margin	%	36.6	37.1
Effective tax rate	%	25.3	15.8
Net profit margin	%	27.2	35.0

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LA OPALA RG Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 298 million as compared to Rs 630 million in FY23, thereby witnessing an decrease of -52.6%.
• Long-term debt down at Rs 56 million as compared to Rs 83 million during FY23, a fall of 33.3%.
• Current assets rose 13% and stood at Rs 6 billion, while fixed assets fell 11% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 3%.

LA OPALA RG Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,749	8,515	9.9
Current Liabilities	Rs m	630	298	-52.6
Long-term Debt	Rs m	83	56	-33.3
Total Liabilities	Rs m	8,969	9,273	3.4
Current assets	Rs m	5,365	6,050	12.8
Fixed Assets	Rs m	3,605	3,223	-10.6
Total Assets	Rs m	8,969	9,273	3.4

LA OPALA RG Cash Flow Statement Analysis

• LA OPALA RG's cash flow from operating activities (CFO) during FY24 stood at Rs 682 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -247 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -433 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 million from the Rs 0 million net cash flows seen during FY23.

LA OPALA RG 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	1,093	682	-37.6%
Cash Flow from Investing Activities	Rs m	-689	-247	-
Cash Flow from Financing Activities	Rs m	-404	-433	-
Net Cash Flow	Rs m	0	2	8,650.0%

Current Valuations for LA OPALA RG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.5, an improvement from the EPS of Rs 11.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 372.7, stands at 33.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 11.3 times.
• The company's price to cash flow (P/CF) ratio stood at 28.8 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	40.7	32.9
TTM Earnings per share	Rs	11.1	11.5
Diluted earnings per share	Rs	11.1	11.5
Price to Cash Flow	x	26.0	28.8
TTM P/E ratio	x	30.7	33.7
Price / Book Value ratio	x	4.8	5.1
Market Cap	Rs m	37,465	43,049
Dividends per share (Unadj.)	Rs	5.0	10.0

Ratio Analysis for LA OPALA RG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 20.3x during FY24, from 8.5x 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 24.4x during FY24, from 23.0x 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 15.0% during FY24, from 15.9% 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 declined and down at 18.5% during FY24, from 22.0% 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 14.5% during FY24, from 14.5% 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	8.5	20.3
Debtors’ Days	Days	292	245
Interest coverage	x	23.0	24.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.5	14.5
Return on equity	%	15.9	15.0
Return on capital employed	%	22.0	18.5

To see how LA OPALA RG has performed over the last 5 years, please visit here.

LA OPALA RG Share Price Performance

Over the last one year, LA OPALA RG share price has moved down from Rs 423.1 to Rs 372.7, registering a loss of Rs 50.4 or around 11.9%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for LA OPALA RG and quarterly results for LA OPALA RG)