TEMBO GLOBAL 2023-24 Annual Report Analysis

Fri, 29 Nov

TEMBO GLOBAL 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.

TEMBO GLOBAL Income Statement Analysis

• Operating income during the year rose 73.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 60.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 4.4% in FY24 as against 4.7% in FY23.
• Depreciation charges increased by 5.2% and finance costs increased by 52.9% YoY, respectively.
• Other income grew by 261.2% YoY.
• Net profit for the year grew by 139.4% YoY.
• Net profit margins during the year grew from 2.3% in FY23 to 3.2% in FY24.

TEMBO GLOBAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,498	4,321	73.0%
Other income	Rs m	21	75	261.2%
Total Revenues	Rs m	2,519	4,396	74.5%
Gross profit	Rs m	118	189	60.9%
Depreciation	Rs m	26	27	5.2%
Interest	Rs m	34	52	52.9%
Profit before tax	Rs m	79	185	135.5%
Tax	Rs m	21	47	124.7%
Profit after tax	Rs m	58	139	139.4%
Gross profit margin	%	4.7	4.4
Effective tax rate	%	26.5	25.3
Net profit margin	%	2.3	3.2

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TEMBO GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 856 million as compared to Rs 631 million in FY23, thereby witnessing an increase of 35.7%.
• Long-term debt stood at Rs 95 million as compared to Rs 60 million during FY23, a growth of 57.9%.
• Current assets rose 56% and stood at Rs 1 billion, while fixed assets rose 27% and stood at Rs 404 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 47%.

TEMBO GLOBAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	399	525	31.7
Current Liabilities	Rs m	631	856	35.7
Long-term Debt	Rs m	60	95	57.9
Total Liabilities	Rs m	1,096	1,612	47.0
Current assets	Rs m	772	1,207	56.3
Fixed Assets	Rs m	318	404	27.1
Total Assets	Rs m	1,096	1,612	47.0

TEMBO GLOBAL Cash Flow Statement Analysis

• TEMBO GLOBAL's cash flow from operating activities (CFO) during FY24 stood at Rs -74 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -80 million, an improvement of 8.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 153 million, an improvement of 160% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs 3 million net cash flows seen during FY23.

TEMBO GLOBAL 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	-74	-
Cash Flow from Investing Activities	Rs m	-73	-80	-
Cash Flow from Financing Activities	Rs m	59	153	160.3%
Net Cash Flow	Rs m	3	-1	-

Current Valuations for TEMBO GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.5, an improvement from the EPS of Rs 5.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 709.6, stands at 30.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.0 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 17.3 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	225.1	389.3
TTM Earnings per share	Rs	5.2	12.5
Diluted earnings per share	Rs	5.2	12.5
Price to Cash Flow	x	0.0	17.3
TTM P/E ratio	x	0.0	30.1
Price / Book Value ratio	x	4.1	5.5
Market Cap	Rs m	1,635	2,863
Dividends per share (Unadj.)	Rs	1.5	1.0

Ratio Analysis for TEMBO GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.2x 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 improved and stood at 4.6x during FY24, from 3.3x 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 improved and stood at 26.4% during FY24, from 14.5% 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 38.2% during FY24, from 24.5% 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 11.8% during FY24, from 8.4% 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	1.2	1.4
Debtors’ Days	Days	344	259
Interest coverage	x	3.3	4.6
Debt to equity ratio	x	0.2	0.2
Return on assets	%	8.4	11.8
Return on equity	%	14.5	26.4
Return on capital employed	%	24.5	38.2

To see how TEMBO GLOBAL has performed over the last 5 years, please visit here.

TEMBO GLOBAL Share Price Performance

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(To know more, check out historical annual results for TEMBO GLOBAL and quarterly results for TEMBO GLOBAL)