TEGA INDUSTRIES 2023-24 Annual Report Analysis

Wed, 31 Jul

TEGA INDUSTRIES 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.

TEGA INDUSTRIES Income Statement Analysis

• Operating income during the year rose 23.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 20.8% in FY24 as against 22.6% in FY23.
• Depreciation charges increased by 54.6% and finance costs increased by 71.0% YoY, respectively.
• Other income grew by 52.6% YoY.
• Net profit for the year grew by 5.3% YoY.
• Net profit margins during the year declined from 15.2% in FY23 to 13.0% in FY24.

TEGA INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,140	14,927	23.0%
Other income	Rs m	216	330	52.6%
Total Revenues	Rs m	12,356	15,257	23.5%
Gross profit	Rs m	2,749	3,105	13.0%
Depreciation	Rs m	412	637	54.6%
Interest	Rs m	192	328	71.0%
Profit before tax	Rs m	2,361	2,470	4.6%
Tax	Rs m	521	531	2.0%
Profit after tax	Rs m	1,840	1,939	5.3%
Gross profit margin	%	22.6	20.8
Effective tax rate	%	22.1	21.5
Net profit margin	%	15.2	13.0

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TEGA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 34.1%.
• Long-term debt down at Rs 1 billion as compared to Rs 1 billion during FY23, a fall of 17.9%.
• Current assets rose 22% and stood at Rs 12 billion, while fixed assets rose 5% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 16%.

TEGA INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,490	11,918	13.6
Current Liabilities	Rs m	3,922	5,261	34.1
Long-term Debt	Rs m	1,416	1,162	-17.9
Total Liabilities	Rs m	16,179	18,712	15.7
Current assets	Rs m	9,922	12,136	22.3
Fixed Assets	Rs m	6,256	6,576	5.1
Total Assets	Rs m	16,179	18,712	15.7

TEGA INDUSTRIES Cash Flow Statement Analysis

• TEGA INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 41.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -907 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 406 million from the Rs 62 million net cash flows seen during FY23.

TEGA INDUSTRIES 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	1,786	2,521	41.2%
Cash Flow from Investing Activities	Rs m	-2,338	-907	-
Cash Flow from Financing Activities	Rs m	630	-1,152	-
Net Cash Flow	Rs m	62	406	552.2%

Current Valuations for TEGA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.1, an improvement from the EPS of Rs 27.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,870.0, stands at 65.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 8.3 times.
• The company's price to cash flow (P/CF) ratio stood at 26.0 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	183.0	224.3
TTM Earnings per share	Rs	27.7	29.1
Diluted earnings per share	Rs	27.7	29.1
Price to Cash Flow	x	20.8	26.0
TTM P/E ratio	x	26.1	65.7
Price / Book Value ratio	x	3.5	5.6
Market Cap	Rs m	37,165	67,088
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for TEGA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY24, from 2.5x 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 8.5x during FY24, from 13.3x 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 16.3% during FY24, from 17.5% 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 declined and down at 21.4% during FY24, from 21.4% 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 12.1% during FY24, from 12.6% 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	2.5	2.3
Debtors’ Days	Days	121	109
Interest coverage	x	13.3	8.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.6	12.1
Return on equity	%	17.5	16.3
Return on capital employed	%	21.4	21.4

To see how TEGA INDUSTRIES has performed over the last 5 years, please visit here.

TEGA INDUSTRIES Share Price Performance

Over the last one year, TEGA INDUSTRIES share price has moved up from Rs 981.8 to Rs 1,870.0, registering a gain of Rs 888.3 or around 90.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,393.6 (down 0.1%). Over the last one year it has moved up from 44,045.9 to 75,393.6, a gain of 31,348 points (up 71.2%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

(To know more, check out historical annual results for TEGA INDUSTRIES and quarterly results for TEGA INDUSTRIES)