ALICON CASTALLOY 2023-24 Annual Report Analysis

Wed, 16 Oct

ALICON CASTALLOY 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.

ALICON CASTALLOY Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.5% in FY24 as against 10.9% in FY23.
• Depreciation charges increased by 22.0% and finance costs increased by 30.3% YoY, respectively.
• Other income grew by 8.5% YoY.
• Net profit for the year grew by 19.3% YoY.
• Net profit margins during the year grew from 3.7% in FY23 to 3.9% in FY24.

ALICON CASTALLOY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,012	15,594	11.3%
Other income	Rs m	35	38	8.5%
Total Revenues	Rs m	14,047	15,632	11.3%
Gross profit	Rs m	1,534	1,953	27.3%
Depreciation	Rs m	636	775	22.0%
Interest	Rs m	312	407	30.3%
Profit before tax	Rs m	621	809	30.2%
Tax	Rs m	107	195	82.6%
Profit after tax	Rs m	514	614	19.3%
Gross profit margin	%	10.9	12.5
Effective tax rate	%	17.2	24.1
Net profit margin	%	3.7	3.9

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ALICON CASTALLOY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an increase of 10.6%.
• Long-term debt stood at Rs 1 billion as compared to Rs 1 billion during FY23, a growth of 11.4%.
• Current assets rose 11% and stood at Rs 7 billion, while fixed assets rose 16% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 13%.

ALICON CASTALLOY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,879	5,409	10.9
Current Liabilities	Rs m	4,655	5,148	10.6
Long-term Debt	Rs m	1,086	1,209	11.4
Total Liabilities	Rs m	10,876	12,302	13.1
Current assets	Rs m	6,284	6,968	10.9
Fixed Assets	Rs m	4,591	5,334	16.2
Total Assets	Rs m	10,876	12,302	13.1

ALICON CASTALLOY Cash Flow Statement Analysis

• ALICON CASTALLOY's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 74.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 31.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -511 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -7 million from the Rs 10 million net cash flows seen during FY23.

ALICON CASTALLOY 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	903	1,574	74.2%
Cash Flow from Investing Activities	Rs m	-817	-1,070	-
Cash Flow from Financing Activities	Rs m	-77	-511	-
Net Cash Flow	Rs m	10	-7	-

Current Valuations for ALICON CASTALLOY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 38.1, an improvement from the EPS of Rs 31.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,315.0, stands at 30.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	869.7	968.0
TTM Earnings per share	Rs	31.9	38.1
Diluted earnings per share	Rs	31.6	37.7
Price to Cash Flow	x	9.5	10.2
TTM P/E ratio	x	21.2	30.2
Price / Book Value ratio	x	2.8	2.6
Market Cap	Rs m	13,613	14,109
Dividends per share (Unadj.)	Rs	6.3	7.5

Ratio Analysis for ALICON CASTALLOY

• 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 deteriorated and stood at 3.0x during FY24, from 3.0x 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 11.3% during FY24, from 10.5% 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 18.4% during FY24, from 15.7% 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 8.3% during FY24, from 7.6% 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	1,149	1,224
Interest coverage	x	3.0	3.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.6	8.3
Return on equity	%	10.5	11.3
Return on capital employed	%	15.7	18.4

To see how ALICON CASTALLOY has performed over the last 5 years, please visit here.

ALICON CASTALLOY Share Price Performance

Over the last one year, ALICON CASTALLOY share price has moved up from Rs 836.1 to Rs 1,315.0, registering a gain of Rs 478.9 or around 57.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,037.4 (down 0.1%). Over the last one year it has moved up from 23,515.5 to 33,037.4, a gain of 9,522 points (up 40.5%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for ALICON CASTALLOY and quarterly results for ALICON CASTALLOY)