PONDY OXIDES 2023-24 Annual Report Analysis

Thu, 29 Aug

PONDY OXIDES 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.

PONDY OXIDES Income Statement Analysis

• Operating income during the year rose 4.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 33.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.6% in FY24 as against 7.2% in FY23.
• Depreciation charges increased by 18.9% and finance costs increased by 113.2% YoY, respectively.
• Other income declined by 3.8% YoY.
• Net profit for the year declined by 57.5% YoY.
• Net profit margins during the year declined from 5.1% in FY23 to 2.1% in FY24.

PONDY OXIDES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,762	15,406	4.4%
Other income	Rs m	43	41	-3.8%
Total Revenues	Rs m	14,805	15,447	4.3%
Gross profit	Rs m	1,070	707	-33.9%
Depreciation	Rs m	111	132	18.9%
Interest	Rs m	83	176	113.2%
Profit before tax	Rs m	919	440	-52.1%
Tax	Rs m	168	121	-27.8%
Profit after tax	Rs m	751	319	-57.5%
Gross profit margin	%	7.2	4.6
Effective tax rate	%	18.3	27.6
Net profit margin	%	5.1	2.1

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PONDY OXIDES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -38.1%.
• Long-term debt down at Rs 30 million as compared to Rs 60 million during FY23, a fall of 49.8%.
• Current assets fell 3% and stood at Rs 3 billion, while fixed assets rose 9% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 2%.

PONDY OXIDES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,642	3,366	27.4
Current Liabilities	Rs m	1,939	1,200	-38.1
Long-term Debt	Rs m	60	30	-49.8
Total Liabilities	Rs m	4,686	4,767	1.7
Current assets	Rs m	3,008	2,932	-2.5
Fixed Assets	Rs m	1,676	1,835	9.5
Total Assets	Rs m	4,686	4,767	1.7

PONDY OXIDES Cash Flow Statement Analysis

• PONDY OXIDES's cash flow from operating activities (CFO) during FY24 stood at Rs 653 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -528 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -19 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 106 million from the Rs -7 million net cash flows seen during FY23.

PONDY OXIDES 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	779	653	-16.2%
Cash Flow from Investing Activities	Rs m	-1,087	-528	-
Cash Flow from Financing Activities	Rs m	301	-19	-
Net Cash Flow	Rs m	-7	106	-

Current Valuations for PONDY OXIDES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.3, an decline from the EPS of Rs 64.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,800.0, stands at 55.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.7 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 16.9 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	1,270.4	1,221.7
TTM Earnings per share	Rs	64.6	25.3
Diluted earnings per share	Rs	59.5	25.3
Price to Cash Flow	x	4.3	16.9
TTM P/E ratio	x	5.0	55.7
Price / Book Value ratio	x	2.0	2.3
Market Cap	Rs m	5,335	7,601
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for PONDY OXIDES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 1.6x 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 deteriorated and stood at 3.5x during FY24, from 12.1x 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 9.5% during FY24, from 28.4% 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 18.1% during FY24, from 37.1% 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 10.4% during FY24, from 17.8% 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	1.6	2.4
Debtors’ Days	Days	251	248
Interest coverage	x	12.1	3.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.8	10.4
Return on equity	%	28.4	9.5
Return on capital employed	%	37.1	18.1

To see how PONDY OXIDES has performed over the last 5 years, please visit here.

PONDY OXIDES Share Price Performance

Over the last one year, PONDY OXIDES share price has moved up from Rs 453.3 to Rs 1,800.0, registering a gain of Rs 1,346.8 or around 297.1%.

Overall, the S&P BSE SENSEX is up 26.1% over the year.

(To know more, check out historical annual results for PONDY OXIDES and quarterly results for PONDY OXIDES)