LOTUS CHOC 2023-24 Annual Report Analysis

Fri, 29 Nov

LOTUS CHOC 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.

LOTUS CHOC Income Statement Analysis

• Operating income during the year rose 218.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.5% in FY24 as against 10.6% in FY23.
• Depreciation charges increased by 493.6% and finance costs increased by 248.3% YoY, respectively.
• Other income grew by 997.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 11.1% in FY23 to 2.5% in FY24.

LOTUS CHOC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	627	2,000	218.9%
Other income	Rs m	1	11	997.1%
Total Revenues	Rs m	628	2,012	220.2%
Gross profit	Rs m	-66	29	NA
Depreciation	Rs m	2	10	493.6%
Interest	Rs m	2	8	248.3%
Profit before tax	Rs m	-69	22	NA
Tax	Rs m	0	-28	NA
Profit after tax	Rs m	-70	51	NA
Gross profit margin	%	-10.6	1.5
Effective tax rate	%	-0.4	-125.8
Net profit margin	%	-11.1	2.5

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LOTUS CHOC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 224 million as compared to Rs 95 million in FY23, thereby witnessing an increase of 134.9%.
• Current assets rose 294% and stood at Rs 483 million, while fixed assets rose 776% and stood at Rs 221 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 703 million as against Rs 148 million during FY23, thereby witnessing a growth of 376%.

LOTUS CHOC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9	425	4,859.6
Current Liabilities	Rs m	95	224	134.9
Long-term Debt	Rs m	40	0	-100.0
Total Liabilities	Rs m	148	703	375.9
Current assets	Rs m	123	483	293.7
Fixed Assets	Rs m	25	221	775.6
Total Assets	Rs m	148	703	375.9

LOTUS CHOC Cash Flow Statement Analysis

• LOTUS CHOC's cash flow from operating activities (CFO) during FY24 stood at Rs -210 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -166 million, an improvement of 3,119.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 428 million, an improvement of 1,978% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 53 million from the Rs 1 million net cash flows seen during FY23.

LOTUS CHOC 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	28	-210	-
Cash Flow from Investing Activities	Rs m	-5	-166	-
Cash Flow from Financing Activities	Rs m	-23	428	-
Net Cash Flow	Rs m	1	53	10,472.0%

Current Valuations for LOTUS CHOC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, 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 1,412.0, stands at 112.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 42.7 times, while the price to sales ratio stands at 9.1 times.
• The company's price to cash flow (P/CF) ratio stood at 57.8 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	48.8	155.8
TTM Earnings per share	Rs	-5.4	3.9
Diluted earnings per share	Rs	-5.4	3.9
Price to Cash Flow	x	-37.2	57.8
TTM P/E ratio	x	-36.3	112.6
Price / Book Value ratio	x	429.7	8.3
Market Cap	Rs m	3,679	3,515
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for LOTUS CHOC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.2x 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 3.8x during FY24, from -28.9x 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 11.9% during FY24, from -812.7% 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 7.2% during FY24, from -138.0% 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 improved and stood at 8.3% during FY24, from -45.5% 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	1.3	2.2
Debtors’ Days	Days	257	491
Interest coverage	x	-28.9	3.8
Debt to equity ratio	x	4.7	0.0
Return on assets	%	-45.5	8.3
Return on equity	%	-812.7	11.9
Return on capital employed	%	-138.0	7.2

To see how LOTUS CHOC has performed over the last 5 years, please visit here.

LOTUS CHOC Share Price Performance

Over the last one year, LOTUS CHOC share price has moved up from Rs 224.5 to Rs 1,412.0, registering a gain of Rs 1,187.6 or around 529.1%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for LOTUS CHOC and quarterly results for LOTUS CHOC)