ECO RECYCLING 2023-24 Annual Report Analysis

Wed, 21 Aug

ECO RECYCLING 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.

ECO RECYCLING Income Statement Analysis

• Operating income during the year rose 57.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 331.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 58.9% in FY24 as against 21.5% in FY23.
• Depreciation charges decreased by 15.0% and finance costs increased by 283.8% YoY, respectively.
• Other income grew by 18.2% YoY.
• Net profit for the year grew by 161.4% YoY.
• Net profit margins during the year grew from 34.9% in FY23 to 57.8% in FY24.

ECO RECYCLING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	177	280	57.9%
Other income	Rs m	39	46	18.2%
Total Revenues	Rs m	216	326	50.8%
Gross profit	Rs m	38	165	331.6%
Depreciation	Rs m	9	8	-15.0%
Interest	Rs m	2	7	283.8%
Profit before tax	Rs m	66	196	196.7%
Tax	Rs m	4	34	730.0%
Profit after tax	Rs m	62	162	161.4%
Gross profit margin	%	21.5	58.9
Effective tax rate	%	6.2	17.4
Net profit margin	%	34.9	57.8

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ECO RECYCLING Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 53 million as compared to Rs 132 million in FY23, thereby witnessing an decrease of -59.4%.
• Current assets rose 65% and stood at Rs 238 million, while fixed assets rose 13% and stood at Rs 539 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 777 million as against Rs 623 million during FY23, thereby witnessing a growth of 25%.

ECO RECYCLING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	458	654	42.6
Current Liabilities	Rs m	132	53	-59.4
Long-term Debt	Rs m	14	0	-100.0
Total Liabilities	Rs m	623	777	24.7
Current assets	Rs m	145	238	64.7
Fixed Assets	Rs m	479	539	12.6
Total Assets	Rs m	623	777	24.7

ECO RECYCLING Cash Flow Statement Analysis

• ECO RECYCLING's cash flow from operating activities (CFO) during FY24 stood at Rs -21 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 25 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 4 million from the Rs -87 million net cash flows seen during FY23.

ECO RECYCLING 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	163	-21	-
Cash Flow from Investing Activities	Rs m	-242	25	-
Cash Flow from Financing Activities	Rs m	-9	0	-
Net Cash Flow	Rs m	-87	4	-

Current Valuations for ECO RECYCLING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.4, an improvement from the EPS of Rs 3.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 906.1, stands at 80.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 26.7 times, while the price to sales ratio stands at 62.4 times.
• The company's price to cash flow (P/CF) ratio stood at 36.0 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	9.2	14.5
TTM Earnings per share	Rs	3.2	8.4
Diluted earnings per share	Rs	3.2	8.4
Price to Cash Flow	x	29.6	36.0
TTM P/E ratio	x	34.2	80.8
Price / Book Value ratio	x	5.4	9.4
Market Cap	Rs m	2,460	6,120
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ECO RECYCLING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.5x during FY24, from 1.1x 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 28.6x during FY24, from 36.7x 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 24.8% during FY24, from 13.5% 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 improved and stood at 31.1% during FY24, from 14.4% 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 21.8% during FY24, from 10.2% 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	1.1	4.5
Debtors’ Days	Days	50,349,889	57,926
Interest coverage	x	36.7	28.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	21.8
Return on equity	%	13.5	24.8
Return on capital employed	%	14.4	31.1

To see how ECO RECYCLING has performed over the last 5 years, please visit here.

ECO RECYCLING Share Price Performance

Over the last one year, ECO RECYCLING share price has moved up from Rs 179.2 to Rs 906.1, registering a gain of Rs 726.9 or around 405.6%.

Overall, the S&P BSE SENSEX is up 23.8% over the year.

(To know more, check out historical annual results for ECO RECYCLING and quarterly results for ECO RECYCLING)