TVS HOLDINGS 2023-24 Annual Report Analysis

Wed, 17 Jul

TVS HOLDINGS 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.

TVS HOLDINGS Income Statement Analysis

• Operating income during the year rose 19.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 32.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.5% in FY24 as against 13.1% in FY23.
• Depreciation charges increased by 4.5% and finance costs increased by 43.5% YoY, respectively.
• Other income grew by 21.3% YoY.
• Net profit for the year grew by 33.7% YoY.
• Net profit margins during the year grew from 4.0% in FY23 to 4.4% in FY24.

TVS HOLDINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	336,615	402,476	19.6%
Other income	Rs m	288	350	21.3%
Total Revenues	Rs m	336,903	402,825	19.6%
Gross profit	Rs m	43,948	58,252	32.5%
Depreciation	Rs m	9,858	10,300	4.5%
Interest	Rs m	14,245	20,438	43.5%
Profit before tax	Rs m	20,133	27,864	38.4%
Tax	Rs m	6,802	10,040	47.6%
Profit after tax	Rs m	13,332	17,824	33.7%
Gross profit margin	%	13.1	14.5
Effective tax rate	%	33.8	36.0
Net profit margin	%	4.0	4.4

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TVS HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 161 billion as compared to Rs 114 billion in FY23, thereby witnessing an increase of 41.8%.
• Long-term debt down at Rs 211 billion as compared to Rs 214 billion during FY23, a fall of 1.6%.
• Current assets rose 20% and stood at Rs 364 billion, while fixed assets fell 10% and stood at Rs 79 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 443 billion as against Rs 390 billion during FY23, thereby witnessing a growth of 13%.

TVS HOLDINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	32,410	28,401	-12.4
Current Liabilities	Rs m	113,575	161,035	41.8
Long-term Debt	Rs m	213,979	210,636	-1.6
Total Liabilities	Rs m	390,438	442,917	13.4
Current assets	Rs m	302,478	363,621	20.2
Fixed Assets	Rs m	87,961	79,297	-9.8
Total Assets	Rs m	390,438	442,917	13.4

TVS HOLDINGS Cash Flow Statement Analysis

• TVS HOLDINGS's cash flow from operating activities (CFO) during FY24 stood at Rs -9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 15 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 9 billion from the Rs 4 billion net cash flows seen during FY23.

TVS HOLDINGS 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	-41,106	-8,666	-
Cash Flow from Investing Activities	Rs m	-14,393	15,327	-
Cash Flow from Financing Activities	Rs m	59,786	2,753	-95.4%
Net Cash Flow	Rs m	4,286	9,414	119.6%

Current Valuations for TVS HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 881.1, an improvement from the EPS of Rs 659.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 12,927.3, stands at 13.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	16,639.4	19,895.0
TTM Earnings per share	Rs	659.0	881.1
Diluted earnings per share	Rs	658.9	881.0
Price to Cash Flow	x	3.3	4.8
TTM P/E ratio	x	5.5	13.7
Price / Book Value ratio	x	2.9	4.8
Market Cap	Rs m	93,167	135,717
Dividends per share (Unadj.)	Rs	59.0	94.0

Ratio Analysis for TVS HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.7x 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 2.4x during FY24, from 2.4x 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 62.8% during FY24, from 41.1% 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 20.2% during FY24, from 14.0% 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 8.6% during FY24, from 7.1% 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	2.7	2.3
Debtors’ Days	Days	2	2
Interest coverage	x	2.4	2.4
Debt to equity ratio	x	6.6	7.4
Return on assets	%	7.1	8.6
Return on equity	%	41.1	62.8
Return on capital employed	%	14.0	20.2

To see how TVS HOLDINGS has performed over the last 5 years, please visit here.

TVS HOLDINGS Share Price Performance

Over the last one year, TVS HOLDINGS share price has moved up from Rs 4,933.6 to Rs 12,927.3, registering a gain of Rs 7,993.7 or around 162.0%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for TVS HOLDINGS and quarterly results for TVS HOLDINGS)