LAXMI ORGANIC INDUSTRIES 2023-24 Annual Report Analysis

Wed, 10 Jul

LAXMI ORGANIC INDUSTRIES 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.

LAXMI ORGANIC INDUSTRIES Income Statement Analysis

• Operating income during the year rose 2.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.0% in FY24 as against 8.7% in FY23.
• Depreciation charges increased by 47.2% and finance costs decreased by 37.1% YoY, respectively.
• Other income grew by 61.1% YoY.
• Net profit for the year declined by 3.3% YoY.
• Net profit margins during the year declined from 4.5% in FY23 to 4.2% in FY24.

LAXMI ORGANIC INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,912	28,650	2.6%
Other income	Rs m	175	282	61.1%
Total Revenues	Rs m	28,087	28,932	3.0%
Gross profit	Rs m	2,427	2,585	6.5%
Depreciation	Rs m	724	1,066	47.2%
Interest	Rs m	149	93	-37.1%
Profit before tax	Rs m	1,729	1,708	-1.2%
Tax	Rs m	483	503	4.1%
Profit after tax	Rs m	1,246	1,205	-3.3%
Gross profit margin	%	8.7	9.0
Effective tax rate	%	27.9	29.4
Net profit margin	%	4.5	4.2

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LAXMI ORGANIC INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 7.3%.
• Long-term debt down at Rs 972 million as compared to Rs 1 billion during FY23, a fall of 25.4%.
• Current assets rose 21% and stood at Rs 15 billion, while fixed assets rose 13% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 28 billion as against Rs 24 billion during FY23, thereby witnessing a growth of 17%.

LAXMI ORGANIC INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,865	17,716	27.8
Current Liabilities	Rs m	8,301	8,911	7.3
Long-term Debt	Rs m	1,303	972	-25.4
Total Liabilities	Rs m	24,122	28,272	17.2
Current assets	Rs m	12,167	14,772	21.4
Fixed Assets	Rs m	11,955	13,500	12.9
Total Assets	Rs m	24,122	28,272	17.2

LAXMI ORGANIC INDUSTRIES Cash Flow Statement Analysis

• LAXMI ORGANIC INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 182.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 27.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -419 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 301 million from the Rs 474 million net cash flows seen during FY23.

LAXMI ORGANIC INDUSTRIES 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	1,991	5,616	182.1%
Cash Flow from Investing Activities	Rs m	-3,841	-4,895	-
Cash Flow from Financing Activities	Rs m	2,325	-419	-
Net Cash Flow	Rs m	474	301	-36.4%

Current Valuations for LAXMI ORGANIC INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.4, an decline from the EPS of Rs 4.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 267.0, stands at 61.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 32.9 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	105.3	103.9
TTM Earnings per share	Rs	4.7	4.4
Diluted earnings per share	Rs	4.5	4.4
Price to Cash Flow	x	31.3	32.9
TTM P/E ratio	x	49.4	61.2
Price / Book Value ratio	x	6.8	4.2
Market Cap	Rs m	94,668	74,833
Dividends per share (Unadj.)	Rs	0.5	0.6

Ratio Analysis for LAXMI ORGANIC INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.5x 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 19.3x during FY24, from 12.6x 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 6.8% during FY24, from 9.0% 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 9.6% during FY24, from 12.4% 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 4.6% during FY24, from 5.8% 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	1.5	1.7
Debtors’ Days	Days	75	74
Interest coverage	x	12.6	19.3
Debt to equity ratio	x	0.1	0.1
Return on assets	%	5.8	4.6
Return on equity	%	9.0	6.8
Return on capital employed	%	12.4	9.6

To see how LAXMI ORGANIC INDUSTRIES has performed over the last 5 years, please visit here.

LAXMI ORGANIC INDUSTRIES Share Price Performance

Over the last one year, LAXMI ORGANIC INDUSTRIES share price has moved up from Rs 251.1 to Rs 267.0, registering a gain of Rs 15.9 or around 6.3%.

Overall, the S&P BSE SENSEX is up 22.3% over the year.

(To know more, check out historical annual results for LAXMI ORGANIC INDUSTRIES and quarterly results for LAXMI ORGANIC INDUSTRIES)