TECHNOCRAFT 2023-24 Annual Report Analysis

Wed, 9 Oct

TECHNOCRAFT 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.

TECHNOCRAFT Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.9% in FY24 as against 20.3% in FY23.
• Depreciation charges increased by 5.7% and finance costs increased by 42.0% YoY, respectively.
• Other income grew by 78.5% YoY.
• Net profit for the year grew by 1.9% YoY.
• Net profit margins during the year declined from 13.8% in FY23 to 12.8% in FY24.

TECHNOCRAFT Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	19,845	21,816	9.9%
Other income	Rs m	504	899	78.5%
Total Revenues	Rs m	20,349	22,715	11.6%
Gross profit	Rs m	4,034	3,896	-3.4%
Depreciation	Rs m	640	677	5.7%
Interest	Rs m	279	397	42.0%
Profit before tax	Rs m	3,618	3,721	2.9%
Tax	Rs m	872	924	5.9%
Profit after tax	Rs m	2,745	2,798	1.9%
Gross profit margin	%	20.3	17.9
Effective tax rate	%	24.1	24.8
Net profit margin	%	13.8	12.8

Don't Miss: Key Information for Long-term Investors

TECHNOCRAFT Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 11 billion in FY23, thereby witnessing an decrease of -1.8%.
• Long-term debt stood at Rs 1 billion as compared to Rs 296 million during FY23, a growth of 329.6%.
• Current assets rose 3% and stood at Rs 18 billion, while fixed assets rose 39% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 30 billion as against Rs 26 billion during FY23, thereby witnessing a growth of 15%.

TECHNOCRAFT Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,158	16,750	18.3
Current Liabilities	Rs m	11,149	10,948	-1.8
Long-term Debt	Rs m	296	1,273	329.6
Total Liabilities	Rs m	26,196	30,144	15.1
Current assets	Rs m	17,947	18,421	2.6
Fixed Assets	Rs m	8,218	11,450	39.3
Total Assets	Rs m	26,196	30,144	15.1

TECHNOCRAFT Cash Flow Statement Analysis

• TECHNOCRAFT's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 126.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -214 million, an improvement of 65% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -520 million from the Rs 973 million net cash flows seen during FY23.

TECHNOCRAFT 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	1,360	3,076	126.3%
Cash Flow from Investing Activities	Rs m	223	-3,385	-
Cash Flow from Financing Activities	Rs m	-609	-214	-
Net Cash Flow	Rs m	973	-520	-

Current Valuations for TECHNOCRAFT

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 121.8, an improvement from the EPS of Rs 119.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,088.0, stands at 25.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.2 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	864.3	950.2
TTM Earnings per share	Rs	119.6	121.8
Diluted earnings per share	Rs	121.1	123.4
Price to Cash Flow	x	8.1	13.1
TTM P/E ratio	x	10.0	25.6
Price / Book Value ratio	x	1.6	2.7
Market Cap	Rs m	22,515	45,574
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TECHNOCRAFT

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.6x 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 10.4x during FY24, from 14.0x 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 16.7% during FY24, from 19.4% 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 22.8% during FY24, from 27.0% 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 10.6% during FY24, from 11.5% 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	1.6	1.7
Debtors’ Days	Days	772	759
Interest coverage	x	14.0	10.4
Debt to equity ratio	x	0.0	0.1
Return on assets	%	11.5	10.6
Return on equity	%	19.4	16.7
Return on capital employed	%	27.0	22.8

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

TECHNOCRAFT Share Price Performance

Over the last one year, TECHNOCRAFT share price has moved up from Rs 2,006.9 to Rs 3,088.0, registering a gain of Rs 1,081.1 or around 53.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,949.8 (up 1.7%). Over the last one year it has moved up from 47,558.7 to 71,949.8, a gain of 24,391 points (up 51.3%).

Overall, the S&P BSE SENSEX is up 25.6% over the year.

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