TIL 2023-24 Annual Report Analysis

Mon, 19 Aug

TIL 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.

TIL Income Statement Analysis

• Operating income during the year rose 52.7% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 340.7% in FY24 as against 125.5% in FY23.
• Depreciation charges decreased by 20.7% and finance costs decreased by 26.9% YoY, respectively.
• Other income declined by 67.8% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 207.7% in FY23 to 379.5% in FY24.

TIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	438	669	52.7%
Other income	Rs m	67	22	-67.8%
Total Revenues	Rs m	505	691	36.7%
Gross profit	Rs m	-550	2,280	NA
Depreciation	Rs m	90	71	-20.7%
Interest	Rs m	375	274	-26.9%
Profit before tax	Rs m	-947	1,957	NA
Tax	Rs m	-37	-583	NA
Profit after tax	Rs m	-910	2,539	NA
Gross profit margin	%	-125.5	340.7
Effective tax rate	%	3.9	-29.8
Net profit margin	%	-207.7	379.5

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TIL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -42.4%.
• Long-term debt down at Rs 887 million as compared to Rs 2 billion during FY23, a fall of 41.5%.
• Current assets rose 6% and stood at Rs 2 billion, while fixed assets fell 2% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 2%.

TIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-2,924	316	NA
Current Liabilities	Rs m	4,701	2,708	-42.4
Long-term Debt	Rs m	1,516	887	-41.5
Total Liabilities	Rs m	3,176	3,230	1.7
Current assets	Rs m	1,923	2,037	6.0
Fixed Assets	Rs m	1,211	1,193	-1.5
Total Assets	Rs m	3,176	3,230	1.7

TIL Cash Flow Statement Analysis

• TIL's cash flow from operating activities (CFO) during FY24 stood at Rs -833 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 296 million, an improvement of 247.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 587 million, an improvement of 524% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 50 million from the Rs 4 million net cash flows seen during FY23.

TIL 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	56	-833	-
Cash Flow from Investing Activities	Rs m	85	296	247.2%
Cash Flow from Financing Activities	Rs m	-139	587	-
Net Cash Flow	Rs m	4	50	1,325.7%

Current Valuations for TIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 144.8, an improvement from the EPS of Rs -90.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 371.0, stands at 9.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 78.2 times, while the price to sales ratio stands at 9.7 times.
• The company's price to cash flow (P/CF) ratio stood at 2.3 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	43.7	38.2
TTM Earnings per share	Rs	-90.7	144.8
Diluted earnings per share	Rs	-13.7	38.1
Price to Cash Flow	x	-11.9	2.3
TTM P/E ratio	x	-10.7	9.8
Price / Book Value ratio	x	-0.5	19.2
Market Cap	Rs m	1,537	6,079
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.4x 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 8.1x during FY24, from -1.5x 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 803.7% during FY24, from 31.1% 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 185.4% during FY24, from 40.7% 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 87.1% during FY24, from -16.9% 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	0.4	0.8
Debtors’ Days	Days	2,514	1,987
Interest coverage	x	-1.5	8.1
Debt to equity ratio	x	-0.5	2.8
Return on assets	%	-16.9	87.1
Return on equity	%	31.1	803.7
Return on capital employed	%	40.7	185.4

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

TIL Share Price Performance

Over the last one year, TIL share price has moved up from Rs 270.0 to Rs 371.0, registering a gain of Rs 101.0 or around 37.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,934.4 (up 0.1%). Over the last one year it has moved up from 43,172.9 to 72,934.4, a gain of 29,762 points (up 68.9%).

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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