LUMAX IND 2023-24 Annual Report Analysis

Mon, 7 Oct

LUMAX IND 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.

LUMAX IND Income Statement Analysis

• Operating income during the year rose 13.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.0% in FY24 as against 10.5% in FY23.
• Depreciation charges increased by 16.2% and finance costs increased by 62.8% YoY, respectively.
• Other income declined by 22.4% YoY.
• Net profit for the year grew by 7.7% YoY.
• Net profit margins during the year declined from 4.4% in FY23 to 4.2% in FY24.

LUMAX IND Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,195	26,366	13.7%
Other income	Rs m	147	114	-22.4%
Total Revenues	Rs m	23,342	26,480	13.4%
Gross profit	Rs m	2,442	2,892	18.4%
Depreciation	Rs m	799	928	16.2%
Interest	Rs m	299	486	62.8%
Profit before tax	Rs m	1,491	1,592	6.7%
Tax	Rs m	461	482	4.5%
Profit after tax	Rs m	1,031	1,110	7.7%
Gross profit margin	%	10.5	11.0
Effective tax rate	%	30.9	30.3
Net profit margin	%	4.4	4.2

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LUMAX IND Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 15 billion as compared to Rs 11 billion in FY23, thereby witnessing an increase of 43.9%.
• Long-term debt stood at Rs 2 billion as compared to Rs 610 million during FY23, a growth of 152.5%.
• Current assets rose 48% and stood at Rs 12 billion, while fixed assets rose 35% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 26 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 41%.

LUMAX IND Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,836	6,715	15.1
Current Liabilities	Rs m	10,698	15,395	43.9
Long-term Debt	Rs m	610	1,539	152.5
Total Liabilities	Rs m	18,657	26,216	40.5
Current assets	Rs m	8,366	12,341	47.5
Fixed Assets	Rs m	10,291	13,874	34.8
Total Assets	Rs m	18,657	26,216	40.5

LUMAX IND Cash Flow Statement Analysis

• LUMAX IND's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 23.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 171.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 627% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 243 million from the Rs -84 million net cash flows seen during FY23.

LUMAX IND 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	1,077	1,324	23.0%
Cash Flow from Investing Activities	Rs m	-901	-2,447	-
Cash Flow from Financing Activities	Rs m	-260	1,367	-
Net Cash Flow	Rs m	-84	243	-

Current Valuations for LUMAX IND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 118.7, an improvement from the EPS of Rs 110.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,400.0, stands at 40.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 10.4 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	2,480.8	2,819.9
TTM Earnings per share	Rs	110.2	118.7
Diluted earnings per share	Rs	110.3	118.8
Price to Cash Flow	x	9.1	10.4
TTM P/E ratio	x	27.0	40.0
Price / Book Value ratio	x	2.3	3.1
Market Cap	Rs m	13,381	21,152
Dividends per share (Unadj.)	Rs	27.0	35.0

Ratio Analysis for LUMAX IND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.8x 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 4.3x during FY24, from 6.0x 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 16.5% during FY24, from 17.7% 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 declined and down at 25.2% during FY24, from 27.8% 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 6.1% during FY24, from 7.1% 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	0.8	0.8
Debtors’ Days	Days	482	482
Interest coverage	x	6.0	4.3
Debt to equity ratio	x	0.1	0.2
Return on assets	%	7.1	6.1
Return on equity	%	17.7	16.5
Return on capital employed	%	27.8	25.2

To see how LUMAX IND has performed over the last 5 years, please visit here.

LUMAX IND Share Price Performance

Over the last one year, LUMAX IND share price has moved up from Rs 2,360.6 to Rs 2,400.0, registering a gain of Rs 39.4 or around 1.7%.

Overall, the S&P BSE SENSEX is up 23.5% over the year.

(To know more, check out historical annual results for LUMAX IND and quarterly results for LUMAX IND)