TIMKEN INDIA 2023-24 Annual Report Analysis

Mon, 29 Jul

TIMKEN INDIA 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.

TIMKEN INDIA Income Statement Analysis

• Operating income during the year rose 3.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.7% in FY24 as against 20.0% in FY23.
• Depreciation charges decreased by 2.3% and finance costs increased by 34.7% YoY, respectively.
• Other income declined by 23.3% YoY.
• Net profit for the year grew by 0.4% YoY.
• Net profit margins during the year declined from 13.9% in FY23 to 13.5% in FY24.

TIMKEN INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,066	29,095	3.7%
Other income	Rs m	532	408	-23.3%
Total Revenues	Rs m	28,598	29,503	3.2%
Gross profit	Rs m	5,604	5,724	2.2%
Depreciation	Rs m	872	852	-2.3%
Interest	Rs m	28	38	34.7%
Profit before tax	Rs m	5,235	5,242	0.1%
Tax	Rs m	1,328	1,321	-0.5%
Profit after tax	Rs m	3,907	3,921	0.4%
Gross profit margin	%	20.0	19.7
Effective tax rate	%	25.4	25.2
Net profit margin	%	13.9	13.5

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TIMKEN INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 21.5%.
• Current assets rose 18% and stood at Rs 23 billion, while fixed assets rose 21% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 34 billion as against Rs 29 billion during FY23, thereby witnessing a growth of 19%.

TIMKEN INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,372	24,173	18.7
Current Liabilities	Rs m	7,669	9,317	21.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	28,961	34,461	19.0
Current assets	Rs m	19,512	23,073	18.2
Fixed Assets	Rs m	9,448	11,388	20.5
Total Assets	Rs m	28,961	34,461	19.0

TIMKEN INDIA Cash Flow Statement Analysis

• TIMKEN INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 383.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -174 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 944 million from the Rs 3 billion net cash flows seen during FY23.

TIMKEN INDIA 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	3,412	3,399	-0.4%
Cash Flow from Investing Activities	Rs m	-472	-2,281	-
Cash Flow from Financing Activities	Rs m	-153	-174	-
Net Cash Flow	Rs m	2,805	944	-66.3%

Current Valuations for TIMKEN INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.1, an improvement from the EPS of Rs 51.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,120.0, stands at 79.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.8 times, while the price to sales ratio stands at 10.7 times.
• The company's price to cash flow (P/CF) ratio stood at 47.8 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	373.1	386.8
TTM Earnings per share	Rs	51.9	52.1
Diluted earnings per share	Rs	51.9	52.1
Price to Cash Flow	x	43.7	47.8
TTM P/E ratio	x	53.5	79.0
Price / Book Value ratio	x	10.1	9.4
Market Cap	Rs m	205,934	228,138
Dividends per share (Unadj.)	Rs	1.5	2.5

Ratio Analysis for TIMKEN INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.5x during FY24, from 2.5x 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 139.4x during FY24, from 187.1x 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 16.2% during FY24, from 19.2% 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 declined and down at 21.8% during FY24, from 25.8% 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 11.5% during FY24, from 13.6% 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	2.5	2.5
Debtors’ Days	Days	75	82
Interest coverage	x	187.1	139.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.6	11.5
Return on equity	%	19.2	16.2
Return on capital employed	%	25.8	21.8

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

TIMKEN INDIA Share Price Performance

Over the last one year, TIMKEN INDIA share price has moved up from Rs 3,374.1 to Rs 4,120.0, registering a gain of Rs 746.0 or around 22.1%.

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

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