ORIENT ELECTRIC 2023-24 Annual Report Analysis

Wed, 10 Jul

ORIENT ELECTRIC 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 ELECTRIC Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.8% in FY24 as against 6.0% in FY23.
• Depreciation charges increased by 10.3% and finance costs increased by 5.0% YoY, respectively.
• Other income declined by 42.4% YoY.
• Net profit for the year declined by 0.8% YoY.
• Net profit margins during the year declined from 3.0% in FY23 to 2.7% in FY24.

ORIENT ELECTRIC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	25,292	28,121	11.2%
Other income	Rs m	270	155	-42.4%
Total Revenues	Rs m	25,562	28,277	10.6%
Gross profit	Rs m	1,506	1,630	8.2%
Depreciation	Rs m	535	590	10.3%
Interest	Rs m	222	233	5.0%
Profit before tax	Rs m	1,019	963	-5.6%
Tax	Rs m	261	210	-19.5%
Profit after tax	Rs m	759	753	-0.8%
Gross profit margin	%	6.0	5.8
Effective tax rate	%	25.6	21.8
Net profit margin	%	3.0	2.7

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ORIENT ELECTRIC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 23.0%.
• Current assets rose 8% and stood at Rs 9 billion, while fixed assets rose 36% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 12 billion during FY23, thereby witnessing a growth of 15%.

ORIENT ELECTRIC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,795	6,364	9.8
Current Liabilities	Rs m	5,836	7,177	23.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	12,392	14,208	14.7
Current assets	Rs m	8,535	9,194	7.7
Fixed Assets	Rs m	3,696	5,014	35.7
Total Assets	Rs m	12,392	14,208	14.7

ORIENT ELECTRIC Cash Flow Statement Analysis

• ORIENT ELECTRIC's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 55.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -457 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -980 million from the Rs 137 million net cash flows seen during FY23.

ORIENT ELECTRIC 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	1,897	1,183	-37.7%
Cash Flow from Investing Activities	Rs m	-1,099	-1,705	-
Cash Flow from Financing Activities	Rs m	-661	-457	-
Net Cash Flow	Rs m	137	-980	-

Current Valuations for ORIENT ELECTRIC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an decline from the EPS of Rs 3.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 260.2, stands at 73.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.7 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 35.9 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	118.9	131.8
TTM Earnings per share	Rs	3.6	3.5
Diluted earnings per share	Rs	3.6	3.5
Price to Cash Flow	x	44.6	35.9
TTM P/E ratio	x	76.0	73.8
Price / Book Value ratio	x	11.1	7.6
Market Cap	Rs m	64,043	48,226
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for ORIENT ELECTRIC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 5.1x 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 declined and down at 11.8% during FY24, from 13.1% 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 18.8% during FY24, from 21.4% 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 6.9% during FY24, from 7.9% 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	1.3
Debtors’ Days	Days	5	6
Interest coverage	x	5.6	5.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.9	6.9
Return on equity	%	13.1	11.8
Return on capital employed	%	21.4	18.8

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

ORIENT ELECTRIC Share Price Performance

Over the last one year, ORIENT ELECTRIC share price has moved up from Rs 257.9 to Rs 260.2, registering a gain of Rs 2.4 or around 0.9%.

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

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