TPL PLASTECH 2023-24 Annual Report Analysis

Wed, 16 Oct

TPL PLASTECH 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.

TPL PLASTECH Income Statement Analysis

• Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY24 as against 13.4% in FY23.
• Depreciation charges increased by 2.6% and finance costs increased by 1.4% YoY, respectively.
• Other income declined by 41.9% YoY.
• Net profit for the year grew by 23.8% YoY.
• Net profit margins during the year grew from 7.2% in FY23 to 7.7% in FY24.

TPL PLASTECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,223	2,578	16.0%
Other income	Rs m	27	16	-41.9%
Total Revenues	Rs m	2,250	2,594	15.3%
Gross profit	Rs m	297	360	21.5%
Depreciation	Rs m	55	56	2.6%
Interest	Rs m	64	65	1.4%
Profit before tax	Rs m	205	255	24.5%
Tax	Rs m	44	56	26.9%
Profit after tax	Rs m	160	198	23.8%
Gross profit margin	%	13.4	14.0
Effective tax rate	%	21.7	22.1
Net profit margin	%	7.2	7.7

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TPL PLASTECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 771 million as compared to Rs 786 million in FY23, thereby witnessing an decrease of -2.0%.
• Long-term debt down at Rs 103 million as compared to Rs 156 million during FY23, a fall of 33.8%.
• Current assets rose 5% and stood at Rs 1 billion, while fixed assets rose 6% and stood at Rs 875 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 3%.

TPL PLASTECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,154	1,303	13.0
Current Liabilities	Rs m	786	771	-2.0
Long-term Debt	Rs m	156	103	-33.8
Total Liabilities	Rs m	2,244	2,318	3.3
Current assets	Rs m	1,342	1,408	4.9
Fixed Assets	Rs m	822	875	6.5
Total Assets	Rs m	2,244	2,318	3.3

TPL PLASTECH Cash Flow Statement Analysis

• TPL PLASTECH's cash flow from operating activities (CFO) during FY24 stood at Rs 293 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -57 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -235 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs 0 million net cash flows seen during FY23.

TPL PLASTECH 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	-18	293	-
Cash Flow from Investing Activities	Rs m	-99	-57	-
Cash Flow from Financing Activities	Rs m	116	-235	-
Net Cash Flow	Rs m	0	1	-

Current Valuations for TPL PLASTECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.5, an improvement from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 103.0, stands at 38.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 3.1 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	28.5	33.1
TTM Earnings per share	Rs	2.1	2.5
Diluted earnings per share	Rs	2.1	2.5
Price to Cash Flow	x	10.5	16.2
TTM P/E ratio	x	14.1	38.9
Price / Book Value ratio	x	2.3	3.2
Market Cap	Rs m	2,604	4,113
Dividends per share (Unadj.)	Rs	0.6	0.8

Ratio Analysis for TPL PLASTECH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.7x 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 improved and stood at 4.9x during FY24, from 4.2x 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 15.2% during FY24, from 13.9% 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 22.7% during FY24, from 20.5% 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 11.4% during FY24, from 10.0% 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	1.7	1.8
Debtors’ Days	Days	890	775
Interest coverage	x	4.2	4.9
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.0	11.4
Return on equity	%	13.9	15.2
Return on capital employed	%	20.5	22.7

To see how TPL PLASTECH has performed over the last 5 years, please visit here.

TPL PLASTECH Share Price Performance

Over the last one year, TPL PLASTECH share price has moved up from Rs 52.6 to Rs 103.0, registering a gain of Rs 50.4 or around 96.0%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

(To know more, check out historical annual results for TPL PLASTECH and quarterly results for TPL PLASTECH)