PRECISION CAMSHAFTS 2023-24 Annual Report Analysis

Fri, 5 Jul

PRECISION CAMSHAFTS 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.

PRECISION CAMSHAFTS Income Statement Analysis

• Operating income during the year fell 4.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.5% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 8.4% and finance costs increased by 1.3% YoY, respectively.
• Other income declined by 4.6% YoY.
• Net profit for the year declined by 12.8% YoY.
• Net profit margins during the year declined from 4.3% in FY23 to 3.9% in FY24.

PRECISION CAMSHAFTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,801	10,311	-4.5%
Other income	Rs m	331	316	-4.6%
Total Revenues	Rs m	11,133	10,627	-4.5%
Gross profit	Rs m	1,106	1,185	7.1%
Depreciation	Rs m	752	816	8.4%
Interest	Rs m	82	83	1.3%
Profit before tax	Rs m	603	602	-0.2%
Tax	Rs m	140	198	41.6%
Profit after tax	Rs m	463	404	-12.8%
Gross profit margin	%	10.2	11.5
Effective tax rate	%	23.2	32.9
Net profit margin	%	4.3	3.9

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

PRECISION CAMSHAFTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -24.8%.
• Long-term debt down at Rs 66 million as compared to Rs 180 million during FY23, a fall of 63.1%.
• Current assets fell 5% and stood at Rs 7 billion, while fixed assets fell 10% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 11 billion during FY23, thereby witnessing a fall of 6%.

PRECISION CAMSHAFTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,165	7,484	4.4
Current Liabilities	Rs m	3,544	2,665	-24.8
Long-term Debt	Rs m	180	66	-63.1
Total Liabilities	Rs m	11,014	10,357	-6.0
Current assets	Rs m	6,953	6,627	-4.7
Fixed Assets	Rs m	4,061	3,638	-10.4
Total Assets	Rs m	11,014	10,357	-6.0

PRECISION CAMSHAFTS Cash Flow Statement Analysis

• PRECISION CAMSHAFTS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 27.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -944 million, an improvement of 164.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -125 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 247 million from the Rs 62 million net cash flows seen during FY23.

PRECISION CAMSHAFTS 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	1,031	1,309	27.0%
Cash Flow from Investing Activities	Rs m	-357	-944	-
Cash Flow from Financing Activities	Rs m	-599	-125	-
Net Cash Flow	Rs m	62	247	297.5%

Current Valuations for PRECISION CAMSHAFTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an decline from the EPS of Rs 4.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 194.9, stands at 45.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 16.2 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	113.7	108.6
TTM Earnings per share	Rs	4.9	4.2
Diluted earnings per share	Rs	4.9	4.2
Price to Cash Flow	x	7.4	16.2
TTM P/E ratio	x	19.6	45.9
Price / Book Value ratio	x	1.6	2.6
Market Cap	Rs m	11,401	19,702
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for PRECISION CAMSHAFTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.0x 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 8.2x during FY24, from 8.3x 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 5.4% during FY24, from 6.5% 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 declined and down at 9.1% during FY24, from 9.3% 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 declined and down at 4.7% during FY24, from 5.0% 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	2.0	2.5
Debtors’ Days	Days	697	621
Interest coverage	x	8.3	8.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.0	4.7
Return on equity	%	6.5	5.4
Return on capital employed	%	9.3	9.1

To see how PRECISION CAMSHAFTS has performed over the last 5 years, please visit here.

PRECISION CAMSHAFTS Share Price Performance

Over the last one year, PRECISION CAMSHAFTS share price has moved up from Rs 185.1 to Rs 194.9, registering a gain of Rs 9.8 or around 5.3%.

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for PRECISION CAMSHAFTS and quarterly results for PRECISION CAMSHAFTS)