TIERRA AGROTECH LTD. 2023-24 Annual Report Analysis

Wed, 24 Jul

TIERRA AGROTECH LTD. 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.

TIERRA AGROTECH LTD. Income Statement Analysis

• Operating income during the year rose 11.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 19.1% in FY24 as against 43.8% in FY23.
• Depreciation charges increased by 46.0% and finance costs decreased by 80.3% YoY, respectively.
• Other income grew by 665.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 46.9% in FY23 to 13.1% in FY24.

TIERRA AGROTECH LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	601	671	11.7%
Other income	Rs m	6	46	665.2%
Total Revenues	Rs m	607	717	18.1%
Gross profit	Rs m	-264	-129	NA
Depreciation	Rs m	8	11	46.0%
Interest	Rs m	114	23	-80.3%
Profit before tax	Rs m	-380	-117	NA
Tax	Rs m	-98	-29	NA
Profit after tax	Rs m	-282	-88	NA
Gross profit margin	%	-43.8	-19.1
Effective tax rate	%	25.7	24.5
Net profit margin	%	-46.9	-13.1

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TIERRA AGROTECH LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 593 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -46.9%.
• Long-term debt down at Rs 1 million as compared to Rs 363 million during FY23, a fall of 99.8%.
• Current assets rose 8% and stood at Rs 714 million, while fixed assets fell 16% and stood at Rs 768 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 2 billion during FY23, thereby witnessing a fall of 6%.

TIERRA AGROTECH LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	151	1,031	582.8
Current Liabilities	Rs m	1,116	593	-46.9
Long-term Debt	Rs m	363	1	-99.8
Total Liabilities	Rs m	1,574	1,482	-5.8
Current assets	Rs m	660	714	8.2
Fixed Assets	Rs m	913	768	-15.9
Total Assets	Rs m	1,574	1,482	-5.8

TIERRA AGROTECH LTD. Cash Flow Statement Analysis

• TIERRA AGROTECH LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -52 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 31 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 168 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 147 million from the Rs 175 million net cash flows seen during FY23.

TIERRA AGROTECH LTD. 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	-67	-52	-
Cash Flow from Investing Activities	Rs m	-15	31	-
Cash Flow from Financing Activities	Rs m	257	168	-34.4%
Net Cash Flow	Rs m	175	147	-16.0%

Current Valuations for TIERRA AGROTECH LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an improvement from the EPS of Rs -11.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 59.0, stands at -43.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at -91.0 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	23.9	12.0
TTM Earnings per share	Rs	-11.2	-1.6
Diluted earnings per share	Rs	-4.3	-1.3
Price to Cash Flow	x	-26.0	-91.0
TTM P/E ratio	x	-25.3	-43.1
Price / Book Value ratio	x	31.4	6.8
Market Cap	Rs m	4,746	6,974
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TIERRA AGROTECH LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 0.6x 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 -4.2x during FY24, from -2.3x 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 -8.5% during FY24, from -186.9% 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 -9.1% during FY24, from -51.6% 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 -4.4% during FY24, from -10.7% 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	0.6	1.2
Debtors’ Days	Days	992	1,031
Interest coverage	x	-2.3	-4.2
Debt to equity ratio	x	2.4	0.0
Return on assets	%	-10.7	-4.4
Return on equity	%	-186.9	-8.5
Return on capital employed	%	-51.6	-9.1

To see how TIERRA AGROTECH LTD. has performed over the last 5 years, please visit here.

TIERRA AGROTECH LTD. Share Price Performance

Over the last one year, TIERRA AGROTECH LTD. share price has moved down from Rs 128.1 to Rs 59.0, registering a loss of Rs 69.1 or around 53.9%.

Overall, the S&P BSE SENSEX is up 20.7% over the year.

(To know more, check out historical annual results for TIERRA AGROTECH LTD. and quarterly results for TIERRA AGROTECH LTD.)