TARA CHAND LOGISTICS SOLUTIONS 2023-24 Annual Report Analysis

Mon, 8 Jul

TARA CHAND LOGISTICS SOLUTIONS 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.

TARA CHAND LOGISTICS SOLUTIONS Income Statement Analysis

• Operating income during the year rose 22.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 37.9% in FY24 as against 33.0% in FY23.
• Depreciation charges increased by 30.8% and finance costs decreased by 6.1% YoY, respectively.
• Other income declined by 19.0% YoY.
• Net profit for the year grew by 72.4% YoY.
• Net profit margins during the year grew from 7.8% in FY23 to 11.0% in FY24.

TARA CHAND LOGISTICS SOLUTIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,194	1,464	22.7%
Other income	Rs m	35	28	-19.0%
Total Revenues	Rs m	1,229	1,493	21.5%
Gross profit	Rs m	394	555	41.0%
Depreciation	Rs m	225	294	30.8%
Interest	Rs m	77	73	-6.1%
Profit before tax	Rs m	127	217	71.2%
Tax	Rs m	33	56	67.7%
Profit after tax	Rs m	94	161	72.4%
Gross profit margin	%	33.0	37.9
Effective tax rate	%	26.2	25.7
Net profit margin	%	7.8	11.0

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

TARA CHAND LOGISTICS SOLUTIONS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 505 million as compared to Rs 543 million in FY23, thereby witnessing an decrease of -7.1%.
• Long-term debt stood at Rs 475 million as compared to Rs 459 million during FY23, a growth of 3.4%.
• Current assets fell 18% and stood at Rs 622 million, while fixed assets rose 29% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 13%.

TARA CHAND LOGISTICS SOLUTIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	667	938	40.7
Current Liabilities	Rs m	543	505	-7.1
Long-term Debt	Rs m	459	475	3.4
Total Liabilities	Rs m	2,268	2,570	13.3
Current assets	Rs m	759	622	-18.0
Fixed Assets	Rs m	1,509	1,941	28.6
Total Assets	Rs m	2,268	2,570	13.3

TARA CHAND LOGISTICS SOLUTIONS Cash Flow Statement Analysis

• TARA CHAND LOGISTICS SOLUTIONS's cash flow from operating activities (CFO) during FY24 stood at Rs 462 million, an improvement of 9.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -553 million, an improvement of 110.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -23 million, an improvement of 75% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -113 million from the Rs 71 million net cash flows seen during FY23.

TARA CHAND LOGISTICS SOLUTIONS 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	424	462	9.1%
Cash Flow from Investing Activities	Rs m	-263	-553	-
Cash Flow from Financing Activities	Rs m	-90	-23	-
Net Cash Flow	Rs m	71	-113	-

Current Valuations for TARA CHAND LOGISTICS SOLUTIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.6, an improvement from the EPS of Rs 6.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 469.2, stands at 45.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.7 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	87.5	96.5
TTM Earnings per share	Rs	6.9	10.6
Diluted earnings per share	Rs	6.0	10.4
Price to Cash Flow	x	0.0	4.9
TTM P/E ratio	x	0.0	45.0
Price / Book Value ratio	x	1.4	2.4
Market Cap	Rs m	927	2,227
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TARA CHAND LOGISTICS SOLUTIONS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 4.0x during FY24, from 2.6x 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 17.2% during FY24, from 14.0% 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 20.5% during FY24, from 18.1% 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 9.1% during FY24, from 7.5% 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	1.2
Debtors’ Days	Days	1,638	1,317
Interest coverage	x	2.6	4.0
Debt to equity ratio	x	0.7	0.5
Return on assets	%	7.5	9.1
Return on equity	%	14.0	17.2
Return on capital employed	%	18.1	20.5

To see how TARA CHAND LOGISTICS SOLUTIONS has performed over the last 5 years, please visit here.

TARA CHAND LOGISTICS SOLUTIONS Share Price Performance

Over the last one year, TARA CHAND LOGISTICS SOLUTIONS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.1% over the year.

(To know more, check out historical annual results for TARA CHAND LOGISTICS SOLUTIONS and quarterly results for TARA CHAND LOGISTICS SOLUTIONS)