PERM MAGNETS 2023-24 Annual Report Analysis

Tue, 23 Jul

PERM MAGNETS 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.

PERM MAGNETS Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 16.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.1% in FY24 as against 22.6% in FY23.
• Depreciation charges increased by 65.8% and finance costs increased by 83.3% YoY, respectively.
• Other income declined by 16.7% YoY.
• Net profit for the year declined by 35.6% YoY.
• Net profit margins during the year declined from 16.3% in FY23 to 9.5% in FY24.

PERM MAGNETS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,827	2,015	10.3%
Other income	Rs m	55	45	-16.7%
Total Revenues	Rs m	1,882	2,060	9.5%
Gross profit	Rs m	413	344	-16.7%
Depreciation	Rs m	55	91	65.8%
Interest	Rs m	13	24	83.3%
Profit before tax	Rs m	400	274	-31.3%
Tax	Rs m	102	83	-18.9%
Profit after tax	Rs m	298	192	-35.6%
Gross profit margin	%	22.6	17.1
Effective tax rate	%	25.6	30.2
Net profit margin	%	16.3	9.5

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PERM MAGNETS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 424 million as compared to Rs 356 million in FY23, thereby witnessing an increase of 19.1%.
• Long-term debt stood at Rs 101 million as compared to Rs 40 million during FY23, a growth of 150.2%.
• Current assets rose 18% and stood at Rs 1 billion, while fixed assets rose 62% and stood at Rs 452 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 27%.

PERM MAGNETS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,110	1,297	16.9
Current Liabilities	Rs m	356	424	19.1
Long-term Debt	Rs m	40	101	150.2
Total Liabilities	Rs m	1,493	1,889	26.6
Current assets	Rs m	1,213	1,437	18.4
Fixed Assets	Rs m	280	452	61.7
Total Assets	Rs m	1,493	1,889	26.6

PERM MAGNETS Cash Flow Statement Analysis

• PERM MAGNETS's cash flow from operating activities (CFO) during FY24 stood at Rs 236 million, an improvement of 105.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -262 million, an improvement of 175.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 28 million, an improvement of 327% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs 7 million net cash flows seen during FY23.

PERM MAGNETS 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	115	236	105.2%
Cash Flow from Investing Activities	Rs m	-95	-262	-
Cash Flow from Financing Activities	Rs m	-12	28	-
Net Cash Flow	Rs m	7	1	-84.9%

Current Valuations for PERM MAGNETS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.3, an decline from the EPS of Rs 34.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,044.0, stands at 44.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 4.5 times.
• The company's price to cash flow (P/CF) ratio stood at 39.3 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	212.5	234.3
TTM Earnings per share	Rs	34.6	22.3
Diluted earnings per share	Rs	34.6	22.3
Price to Cash Flow	x	22.1	39.3
TTM P/E ratio	x	65.6	44.4
Price / Book Value ratio	x	4.7	8.6
Market Cap	Rs m	5,199	11,096
Dividends per share (Unadj.)	Rs	1.5	1.8

Ratio Analysis for PERM MAGNETS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.4x during FY24, from 3.4x 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 12.3x during FY24, from 31.3x 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 14.8% during FY24, from 26.8% 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 21.4% during FY24, from 35.9% 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 11.4% during FY24, from 20.8% 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	3.4	3.4
Debtors’ Days	Days	10	7
Interest coverage	x	31.3	12.3
Debt to equity ratio	x	0.0	0.1
Return on assets	%	20.8	11.4
Return on equity	%	26.8	14.8
Return on capital employed	%	35.9	21.4

To see how PERM MAGNETS has performed over the last 5 years, please visit here.

PERM MAGNETS Share Price Performance

Over the last one year, PERM MAGNETS share price has moved down from Rs 1,539.2 to Rs 1,044.0, registering a loss of Rs 495.3 or around 32.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 70,993.4 (down 2.3%). Over the last one year it has moved up from 42,401.9 to 70,993.4, a gain of 28,591 points (up 67.4%).

Overall, the S&P BSE SENSEX is up 19.7% over the year.

(To know more, check out historical annual results for PERM MAGNETS and quarterly results for PERM MAGNETS)