ORIENT CERATECH 2023-24 Annual Report Analysis

Mon, 25 Nov

ORIENT CERATECH 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.

ORIENT CERATECH Income Statement Analysis

• Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 49.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.5% in FY24 as against 8.6% in FY23.
• Depreciation charges increased by 13.5% and finance costs increased by 8.1% YoY, respectively.
• Other income declined by 61.6% YoY.
• Net profit for the year grew by 33.8% YoY.
• Net profit margins during the year grew from 4.7% in FY23 to 6.1% in FY24.

ORIENT CERATECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,022	3,134	3.7%
Other income	Rs m	79	30	-61.6%
Total Revenues	Rs m	3,101	3,164	2.0%
Gross profit	Rs m	261	391	49.9%
Depreciation	Rs m	119	135	13.5%
Interest	Rs m	39	42	8.1%
Profit before tax	Rs m	181	243	34.4%
Tax	Rs m	39	53	36.5%
Profit after tax	Rs m	142	190	33.8%
Gross profit margin	%	8.6	12.5
Effective tax rate	%	21.5	21.8
Net profit margin	%	4.7	6.1

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

ORIENT CERATECH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 473 million in FY23, thereby witnessing an increase of 116.8%.
• Long-term debt stood at Rs 148 million as compared to Rs 55 million during FY23, a growth of 167.1%.
• Current assets rose 34% and stood at Rs 2 billion, while fixed assets rose 13% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 24%.

ORIENT CERATECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,603	2,757	5.9
Current Liabilities	Rs m	473	1,025	116.8
Long-term Debt	Rs m	55	148	167.1
Total Liabilities	Rs m	3,268	4,064	24.4
Current assets	Rs m	1,722	2,313	34.3
Fixed Assets	Rs m	1,546	1,751	13.3
Total Assets	Rs m	3,268	4,064	24.4

ORIENT CERATECH Cash Flow Statement Analysis

• ORIENT CERATECH's cash flow from operating activities (CFO) during FY24 stood at Rs -145 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -239 million, an improvement of 84.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 367 million, an improvement of 229% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -17 million from the Rs 24 million net cash flows seen during FY23.

ORIENT CERATECH 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	438	-145	-
Cash Flow from Investing Activities	Rs m	-130	-239	-
Cash Flow from Financing Activities	Rs m	-284	367	-
Net Cash Flow	Rs m	24	-17	-

Current Valuations for ORIENT CERATECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an improvement from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 42.8, stands at 35.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 17.5 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	25.3	26.2
TTM Earnings per share	Rs	1.2	1.6
Diluted earnings per share	Rs	1.2	1.6
Price to Cash Flow	x	10.4	17.5
TTM P/E ratio	x	19.2	35.8
Price / Book Value ratio	x	1.3	2.1
Market Cap	Rs m	3,470	5,707
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ORIENT CERATECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 3.6x 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 6.8x during FY24, from 5.6x 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 improved and stood at 6.9% during FY24, from 5.5% 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 9.8% 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 5.7% during FY24, from 5.5% 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	3.6	2.3
Debtors’ Days	Days	884	920
Interest coverage	x	5.6	6.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.5	5.7
Return on equity	%	5.5	6.9
Return on capital employed	%	8.3	9.8

To see how ORIENT CERATECH has performed over the last 5 years, please visit here.

ORIENT CERATECH Share Price Performance

Over the last one year, ORIENT CERATECH share price has moved down from Rs 56.8 to Rs 42.8, registering a loss of Rs 14.1 or around 24.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,496.2 (up 0.9%). Over the last one year it has moved up from 23,798.4 to 30,496.2, a gain of 6,698 points (up 28.1%).

Overall, the S&P BSE SENSEX is up 21.7% over the year.

(To know more, check out historical annual results for ORIENT CERATECH and quarterly results for ORIENT CERATECH)