OM INFRA 2023-24 Annual Report Analysis

Tue, 29 Oct

OM INFRA 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.

OM INFRA Income Statement Analysis

• Operating income during the year rose 39.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 107.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.0% in FY24 as against 4.7% in FY23.
• Depreciation charges decreased by 8.1% and finance costs decreased by 10.7% YoY, respectively.
• Other income grew by 31.4% YoY.
• Net profit for the year grew by 262.2% YoY.
• Net profit margins during the year grew from 1.6% in FY23 to 4.2% in FY24.

OM INFRA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,992	11,138	39.4%
Other income	Rs m	298	392	31.4%
Total Revenues	Rs m	8,290	11,530	39.1%
Gross profit	Rs m	375	780	107.7%
Depreciation	Rs m	72	66	-8.1%
Interest	Rs m	278	248	-10.7%
Profit before tax	Rs m	323	857	165.3%
Tax	Rs m	193	386	100.0%
Profit after tax	Rs m	130	471	262.2%
Gross profit margin	%	4.7	7.0
Effective tax rate	%	59.7	45.0
Net profit margin	%	1.6	4.2

Don't Miss: Key Information for Long-term Investors

OM INFRA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 6 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -16.4%.
• Long-term debt down at Rs 141 million as compared to Rs 405 million during FY23, a fall of 65.3%.
• Current assets fell 10% and stood at Rs 9 billion, while fixed assets rose 2% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 15 billion during FY23, thereby witnessing a fall of 5%.

OM INFRA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,826	7,233	6.0
Current Liabilities	Rs m	7,369	6,161	-16.4
Long-term Debt	Rs m	405	141	-65.3
Total Liabilities	Rs m	15,396	14,562	-5.4
Current assets	Rs m	9,553	8,578	-10.2
Fixed Assets	Rs m	5,844	5,984	2.4
Total Assets	Rs m	15,396	14,562	-5.4

OM INFRA Cash Flow Statement Analysis

• OM INFRA's cash flow from operating activities (CFO) during FY24 stood at Rs 611 million, an improvement of 141.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 226 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -873 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -37 million from the Rs 171 million net cash flows seen during FY23.

OM INFRA 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	253	611	141.3%
Cash Flow from Investing Activities	Rs m	-2,848	226	-
Cash Flow from Financing Activities	Rs m	2,766	-873	-
Net Cash Flow	Rs m	171	-37	-

Current Valuations for OM INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.9, an improvement from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 154.4, stands at 32.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.1 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	83.0	115.7
TTM Earnings per share	Rs	1.4	4.9
Diluted earnings per share	Rs	1.4	4.9
Price to Cash Flow	x	15.3	17.1
TTM P/E ratio	x	23.8	32.7
Price / Book Value ratio	x	0.5	1.3
Market Cap	Rs m	3,744	9,185
Dividends per share (Unadj.)	Rs	0.5	0.5

Ratio Analysis for OM INFRA

• 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 4.5x during FY24, from 2.2x 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 6.5% during FY24, from 1.9% 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 improved and stood at 15.0% during FY24, from 8.3% 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 4.9% during FY24, from 2.7% 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	1,105	774
Interest coverage	x	2.2	4.5
Debt to equity ratio	x	0.1	0.0
Return on assets	%	2.7	4.9
Return on equity	%	1.9	6.5
Return on capital employed	%	8.3	15.0

To see how OM INFRA has performed over the last 5 years, please visit here.

OM INFRA Share Price Performance

Over the last one year, OM INFRA share price has moved up from Rs 93.5 to Rs 154.4, registering a gain of Rs 60.8 or around 65.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,692.5 (down 1.7%). Over the last one year it has moved up from 22,303.9 to 30,692.5, a gain of 8,389 points (up 37.6%).

Overall, the S&P BSE SENSEX is up 24.2% over the year.

(To know more, check out historical annual results for OM INFRA and quarterly results for OM INFRA)