THEJO ENGINEERING 2023-24 Annual Report Analysis

Fri, 2 Aug

THEJO ENGINEERING 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.

THEJO ENGINEERING Income Statement Analysis

• Operating income during the year fell 17.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 16.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.7% in FY24 as against 12.5% in FY23.
• Depreciation charges increased by 26.1% and finance costs decreased by 4.0% YoY, respectively.
• Other income declined by 44.1% YoY.
• Net profit for the year grew by 9.3% YoY.
• Net profit margins during the year grew from 7.3% in FY23 to 9.7% in FY24.

THEJO ENGINEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,745	3,916	-17.5%
Other income	Rs m	34	19	-44.1%
Total Revenues	Rs m	4,778	3,935	-17.7%
Gross profit	Rs m	592	692	16.9%
Depreciation	Rs m	122	154	26.1%
Interest	Rs m	46	44	-4.0%
Profit before tax	Rs m	458	513	12.0%
Tax	Rs m	110	132	20.4%
Profit after tax	Rs m	348	381	9.3%
Gross profit margin	%	12.5	17.7
Effective tax rate	%	24.0	25.8
Net profit margin	%	7.3	9.7

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THEJO ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 802 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -21.9%.
• Long-term debt down at Rs 58 million as compared to Rs 103 million during FY23, a fall of 44.1%.
• Current assets fell 19% and stood at Rs 2 billion, while fixed assets rose 3% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 4 billion during FY23, thereby witnessing a fall of 12%.

THEJO ENGINEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,943	2,153	10.8
Current Liabilities	Rs m	1,028	802	-21.9
Long-term Debt	Rs m	103	58	-44.1
Total Liabilities	Rs m	3,624	3,199	-11.7
Current assets	Rs m	2,459	2,001	-18.6
Fixed Assets	Rs m	1,164	1,197	2.9
Total Assets	Rs m	3,624	3,199	-11.7

THEJO ENGINEERING Cash Flow Statement Analysis

• THEJO ENGINEERING's cash flow from operating activities (CFO) during FY24 stood at Rs 402 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -233 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -45 million, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 121 million from the Rs 0 million net cash flows seen during FY23.

THEJO ENGINEERING 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	586	402	-31.4%
Cash Flow from Investing Activities	Rs m	-505	-233	-
Cash Flow from Financing Activities	Rs m	-81	-45	-
Net Cash Flow	Rs m	0	121	303,025.0%

Current Valuations for THEJO ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.4, an improvement from the EPS of Rs 32.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,011.0, stands at 55.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 15.2 times, while the price to sales ratio stands at 8.3 times.
• The company's price to cash flow (P/CF) ratio stood at 46.0 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	443.4	363.9
TTM Earnings per share	Rs	32.5	35.4
Diluted earnings per share	Rs	32.1	35.1
Price to Cash Flow	x	0.0	46.0
TTM P/E ratio	x	0.0	55.0
Price / Book Value ratio	x	6.2	11.4
Market Cap	Rs m	12,103	24,596
Dividends per share (Unadj.)	Rs	2.0	3.0

Ratio Analysis for THEJO ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.4x 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 12.6x during FY24, from 10.9x 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 17.7% during FY24, from 17.9% 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 25.2% during FY24, from 24.6% 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 13.3% during FY24, from 10.9% 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	2.4	2.5
Debtors’ Days	Days	831	953
Interest coverage	x	10.9	12.6
Debt to equity ratio	x	0.1	0.0
Return on assets	%	10.9	13.3
Return on equity	%	17.9	17.7
Return on capital employed	%	24.6	25.2

To see how THEJO ENGINEERING has performed over the last 5 years, please visit here.

THEJO ENGINEERING Share Price Performance

Over the last one year, THEJO ENGINEERING share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,247.3 (down 0.7%). Over the last one year it has moved up from 43,066.5 to 74,247.3, a gain of 31,181 points (up 72.4%).

Overall, the NIFTY 50 is down 0.9% over the year.

(To know more, check out historical annual results for THEJO ENGINEERING and quarterly results for THEJO ENGINEERING)