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TIPS IND. 2023-24 Annual Report Analysis

Thu, 4 Jul

TIPS IND. 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.

TIPS IND. Income Statement Analysis

• Operating income during the year rose 29.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 55.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 65.6% in FY24 as against 54.6% in FY23.
• Depreciation charges increased by 48.6% and finance costs increased by 22.0% YoY, respectively.
• Other income grew by 168.4% YoY.
• Net profit for the year grew by 66.2% YoY.
• Net profit margins during the year grew from 41.0% in FY23 to 52.6% in FY24.

TIPS IND. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,868	2,416	29.3%
Other income	Rs m	54	144	168.4%
Total Revenues	Rs m	1,921	2,560	33.2%
Gross profit	Rs m	1,019	1,585	55.5%
Depreciation	Rs m	13	20	48.6%
Interest	Rs m	3	3	22.0%
Profit before tax	Rs m	1,056	1,705	61.4%
Tax	Rs m	291	434	48.9%
Profit after tax	Rs m	765	1,272	66.2%
Gross profit margin	%	54.6	65.6
Effective tax rate	%	27.6	25.4
Net profit margin	%	41.0	52.6

For Investors: Our Big Prediction

TIPS IND. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 71.2%.
• Current assets rose 72% and stood at Rs 4 billion, while fixed assets rose 128% and stood at Rs 627 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 78%.

TIPS IND. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,362	1,795	31.8
Current Liabilities	Rs m	1,030	1,764	71.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,419	4,313	78.3
Current assets	Rs m	2,144	3,686	71.9
Fixed Assets	Rs m	275	627	127.6
Total Assets	Rs m	2,419	4,313	78.3

TIPS IND. Cash Flow Statement Analysis

• TIPS IND.'s cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 187.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 130.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -848 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 371 million from the Rs -107 million net cash flows seen during FY23.

TIPS IND. 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	811	2,330	187.3%
Cash Flow from Investing Activities	Rs m	-483	-1,110	-
Cash Flow from Financing Activities	Rs m	-435	-848	-
Net Cash Flow	Rs m	-107	371	-

Current Valuations for TIPS IND.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.9, an decline from the EPS of Rs 59.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 449.7, stands at 45.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 32.0 times, while the price to sales ratio stands at 23.9 times.
• The company's price to cash flow (P/CF) ratio stood at 33.7 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	145.5	18.8
TTM Earnings per share	Rs	59.6	9.9
Diluted earnings per share	Rs	6.0	9.9
Price to Cash Flow	x	23.8	33.7
TTM P/E ratio	x	24.2	45.2
Price / Book Value ratio	x	1.7	24.2
Market Cap	Rs m	2,343	43,484
Dividends per share (Unadj.)	Rs	0.5	6.0

Ratio Analysis for TIPS IND.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 2.1x 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 489.6x during FY24, from 370.4x 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 70.8% during FY24, from 56.2% 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 95.2% during FY24, from 77.8% 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 29.6% during FY24, from 31.8% 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	2.1	2.1
Debtors’ Days	Days	396	398
Interest coverage	x	370.4	489.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	31.8	29.6
Return on equity	%	56.2	70.8
Return on capital employed	%	77.8	95.2

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

TIPS IND. Share Price Performance

Over the last one year, TIPS IND. share price has moved up from Rs 265.2 to Rs 449.7, registering a gain of Rs 184.5 or around 69.6%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 17,519.2 (up 0.2%). Over the last one year it has moved up from 13,456.2 to 17,519.2, a gain of 4,063 points (up 30.2%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for TIPS IND. and quarterly results for TIPS IND.)