TARSONS PRODUCTS 2023-24 Annual Report Analysis

Thu, 19 Sep

TARSONS PRODUCTS 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.

TARSONS PRODUCTS Income Statement Analysis

• Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.7% in FY24 as against 45.7% in FY23.
• Depreciation charges increased by 41.7% and finance costs increased by 127.2% YoY, respectively.
• Other income declined by 7.3% YoY.
• Net profit for the year declined by 47.2% YoY.
• Net profit margins during the year declined from 28.5% in FY23 to 14.4% in FY24.

TARSONS PRODUCTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,832	2,964	4.6%
Other income	Rs m	124	115	-7.3%
Total Revenues	Rs m	2,956	3,079	4.1%
Gross profit	Rs m	1,293	998	-22.8%
Depreciation	Rs m	285	404	41.7%
Interest	Rs m	45	102	127.2%
Profit before tax	Rs m	1,087	608	-44.1%
Tax	Rs m	280	181	-35.3%
Profit after tax	Rs m	807	426	-47.2%
Gross profit margin	%	45.7	33.7
Effective tax rate	%	25.8	29.8
Net profit margin	%	28.5	14.4

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TARSONS PRODUCTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 875 million in FY23, thereby witnessing an increase of 162.2%.
• Long-term debt stood at Rs 1 billion as compared to Rs 807 million during FY23, a growth of 26.4%.
• Current assets fell 9% and stood at Rs 3 billion, while fixed assets rose 22% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 12%.

TARSONS PRODUCTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,693	6,129	7.7
Current Liabilities	Rs m	875	2,295	162.2
Long-term Debt	Rs m	807	1,020	26.4
Total Liabilities	Rs m	8,794	9,885	12.4
Current assets	Rs m	2,766	2,516	-9.1
Fixed Assets	Rs m	6,028	7,369	22.3
Total Assets	Rs m	8,794	9,885	12.4

TARSONS PRODUCTS Cash Flow Statement Analysis

• TARSONS PRODUCTS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 35.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 59.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 60% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -467 million from the Rs -184 million net cash flows seen during FY23.

TARSONS PRODUCTS 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	756	1,027	35.9%
Cash Flow from Investing Activities	Rs m	-1,785	-2,850	-
Cash Flow from Financing Activities	Rs m	846	1,356	60.4%
Net Cash Flow	Rs m	-184	-467	-

Current Valuations for TARSONS PRODUCTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.0, an decline from the EPS of Rs 15.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 468.6, stands at 67.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 8.4 times.
• The company's price to cash flow (P/CF) ratio stood at 33.2 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	53.2	55.7
TTM Earnings per share	Rs	15.2	8.0
Diluted earnings per share	Rs	15.2	8.0
Price to Cash Flow	x	26.0	33.2
TTM P/E ratio	x	35.1	67.3
Price / Book Value ratio	x	6.6	4.5
Market Cap	Rs m	37,666	27,582
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for TARSONS PRODUCTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 3.2x 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 7.0x during FY24, from 25.3x 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 7.0% during FY24, from 14.2% 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 9.9% during FY24, from 17.4% 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 declined and down at 5.3% during FY24, from 9.7% 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	3.2	1.1
Debtors’ Days	Days	85	96
Interest coverage	x	25.3	7.0
Debt to equity ratio	x	0.1	0.2
Return on assets	%	9.7	5.3
Return on equity	%	14.2	7.0
Return on capital employed	%	17.4	9.9

To see how TARSONS PRODUCTS has performed over the last 5 years, please visit here.

TARSONS PRODUCTS Share Price Performance

Over the last one year, TARSONS PRODUCTS share price has moved down from Rs 532.0 to Rs 468.6, registering a loss of Rs 63.4 or around 11.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 43,474.3 (down 0.7%). Over the last one year it has moved up from 28,508.7 to 43,474.3, a gain of 14,966 points (up 52.5%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for TARSONS PRODUCTS and quarterly results for TARSONS PRODUCTS)