ORIENT BELL 2023-24 Annual Report Analysis

Wed, 17 Jul

ORIENT BELL 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 BELL Income Statement Analysis

• Operating income during the year fell 4.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 54.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.2% in FY24 as against 6.8% in FY23.
• Depreciation charges increased by 1.5% and finance costs decreased by 18.9% YoY, respectively.
• Other income declined by 49.4% YoY.
• Net profit for the year declined by 95.9% YoY.
• Net profit margins during the year declined from 3.2% in FY23 to 0.1% in FY24.

ORIENT BELL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,051	6,745	-4.3%
Other income	Rs m	54	27	-49.4%
Total Revenues	Rs m	7,105	6,772	-4.7%
Gross profit	Rs m	480	218	-54.6%
Depreciation	Rs m	211	214	1.5%
Interest	Rs m	24	20	-18.9%
Profit before tax	Rs m	299	11	-96.2%
Tax	Rs m	74	2	-97.1%
Profit after tax	Rs m	225	9	-95.9%
Gross profit margin	%	6.8	3.2
Effective tax rate	%	24.7	19.3
Net profit margin	%	3.2	0.1

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ORIENT BELL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 18.0%.
• Long-term debt stood at Rs 410 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets rose 12% and stood at Rs 2 billion, while fixed assets rose 13% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 13%.

ORIENT BELL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,048	3,090	1.4
Current Liabilities	Rs m	1,419	1,674	18.0
Long-term Debt	Rs m	0	410	0.0
Total Liabilities	Rs m	4,922	5,543	12.6
Current assets	Rs m	2,174	2,429	11.7
Fixed Assets	Rs m	2,748	3,114	13.3
Total Assets	Rs m	4,922	5,543	12.6

ORIENT BELL Cash Flow Statement Analysis

• ORIENT BELL's cash flow from operating activities (CFO) during FY24 stood at Rs 397 million, an improvement of 15.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -630 million, an improvement of 200.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 334 million, an improvement of 350% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 101 million from the Rs 0 million net cash flows seen during FY23.

ORIENT BELL 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	344	397	15.6%
Cash Flow from Investing Activities	Rs m	-210	-630	-
Cash Flow from Financing Activities	Rs m	-134	334	-
Net Cash Flow	Rs m	0	101	-335,400.0%

Current Valuations for ORIENT BELL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.6, an decline from the EPS of Rs 15.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 394.8, stands at 5,761.9 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 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 31.0 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	486.6	462.3
TTM Earnings per share	Rs	15.5	0.6
Diluted earnings per share	Rs	15.4	0.6
Price to Cash Flow	x	16.7	31.0
TTM P/E ratio	x	33.6	5,761.9
Price / Book Value ratio	x	2.8	2.2
Market Cap	Rs m	8,447	6,929
Dividends per share (Unadj.)	Rs	1.0	0.5

Ratio Analysis for ORIENT BELL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x 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 deteriorated and stood at 1.6x during FY24, from 13.4x 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 0.3% during FY24, from 7.4% 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 0.9% during FY24, from 10.6% 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 0.5% during FY24, from 5.1% 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	1.5	1.5
Debtors’ Days	Days	576	712
Interest coverage	x	13.4	1.6
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.1	0.5
Return on equity	%	7.4	0.3
Return on capital employed	%	10.6	0.9

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

ORIENT BELL Share Price Performance

Over the last one year, ORIENT BELL share price has moved down from Rs 535.2 to Rs 394.8, registering a loss of Rs 140.4 or around 26.2%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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