PATELS AIRTEMP 2023-24 Annual Report Analysis

Mon, 23 Sep

PATELS AIRTEMP 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.

PATELS AIRTEMP Income Statement Analysis

• Operating income during the year rose 31.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.4% in FY24 as against 10.7% in FY23.
• Depreciation charges decreased by 1.1% and finance costs increased by 6.8% YoY, respectively.
• Other income grew by 60.0% YoY.
• Net profit for the year grew by 32.2% YoY.
• Net profit margins during the year grew from 4.0% in FY23 to 4.0% in FY24.

PATELS AIRTEMP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,815	3,708	31.7%
Other income	Rs m	13	21	60.0%
Total Revenues	Rs m	2,828	3,729	31.9%
Gross profit	Rs m	302	350	16.1%
Depreciation	Rs m	41	41	-1.1%
Interest	Rs m	120	129	6.8%
Profit before tax	Rs m	153	202	31.7%
Tax	Rs m	42	54	30.6%
Profit after tax	Rs m	112	148	32.2%
Gross profit margin	%	10.7	9.4
Effective tax rate	%	27.2	27.0
Net profit margin	%	4.0	4.0

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PATELS AIRTEMP Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 1.8%.
• Long-term debt down at Rs 153 million as compared to Rs 197 million during FY23, a fall of 22.3%.
• Current assets rose 3% and stood at Rs 3 billion, while fixed assets rose 4% and stood at Rs 640 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 3%.

PATELS AIRTEMP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,296	1,427	10.2
Current Liabilities	Rs m	2,090	2,127	1.8
Long-term Debt	Rs m	197	153	-22.3
Total Liabilities	Rs m	3,604	3,707	2.8
Current assets	Rs m	2,991	3,067	2.5
Fixed Assets	Rs m	613	640	4.3
Total Assets	Rs m	3,604	3,707	2.8

PATELS AIRTEMP Cash Flow Statement Analysis

• PATELS AIRTEMP's cash flow from operating activities (CFO) during FY24 stood at Rs 111 million, an improvement of 130.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -9 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -171 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -69 million from the Rs 51 million net cash flows seen during FY23.

PATELS AIRTEMP 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	48	111	130.9%
Cash Flow from Investing Activities	Rs m	-32	-9	-
Cash Flow from Financing Activities	Rs m	34	-171	-
Net Cash Flow	Rs m	51	-69	-

Current Valuations for PATELS AIRTEMP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.0, an improvement from the EPS of Rs 20.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 803.6, stands at 26.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 10.0 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	514.6	677.8
TTM Earnings per share	Rs	20.4	27.0
Diluted earnings per share	Rs	20.4	27.0
Price to Cash Flow	x	7.4	10.0
TTM P/E ratio	x	10.1	26.7
Price / Book Value ratio	x	1.0	1.3
Market Cap	Rs m	1,264	1,891
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for PATELS AIRTEMP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.4x 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 improved and stood at 2.6x during FY24, from 2.3x 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 improved and stood at 10.3% during FY24, from 8.6% 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 20.9% during FY24, from 18.4% 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 improved and stood at 7.5% during FY24, from 6.4% 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	1.4	1.4
Debtors’ Days	Days	1,435	1,047
Interest coverage	x	2.3	2.6
Debt to equity ratio	x	0.2	0.1
Return on assets	%	6.4	7.5
Return on equity	%	8.6	10.3
Return on capital employed	%	18.4	20.9

To see how PATELS AIRTEMP has performed over the last 5 years, please visit here.

PATELS AIRTEMP Share Price Performance

Over the last one year, PATELS AIRTEMP share price has moved up from Rs 355.5 to Rs 803.6, registering a gain of Rs 448.1 or around 126.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,907.8 (up 0.7%). Over the last one year it has moved up from 46,719.8 to 73,907.8, a gain of 27,188 points (up 58.2%).

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for PATELS AIRTEMP and quarterly results for PATELS AIRTEMP)