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TIMEX GROUP 2023-24 Annual Report Analysis

Mon, 12 Aug

TIMEX GROUP 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.

TIMEX GROUP Income Statement Analysis

• Operating income during the year rose 9.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 15.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.7% in FY24 as against 10.0% in FY23.
• Depreciation charges decreased by 0.6% and finance costs decreased by 27.6% YoY, respectively.
• Other income grew by 739.4% YoY.
• Net profit for the year declined by 55.2% YoY.
• Net profit margins during the year declined from 12.1% in FY23 to 5.0% in FY24.

TIMEX GROUP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,835	4,189	9.2%
Other income	Rs m	3	28	739.4%
Total Revenues	Rs m	3,838	4,217	9.9%
Gross profit	Rs m	383	325	-15.3%
Depreciation	Rs m	36	36	-0.6%
Interest	Rs m	54	39	-27.6%
Profit before tax	Rs m	297	278	-6.4%
Tax	Rs m	-169	69	NA
Profit after tax	Rs m	465	208	-55.2%
Gross profit margin	%	10.0	7.7
Effective tax rate	%	-56.8	24.9
Net profit margin	%	12.1	5.0

For Investors: Our Big Prediction

TIMEX GROUP Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 943 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -12.9%.
• Long-term debt stood at Rs 18 million as compared to Rs 17 million during FY23, a growth of 9.0%.
• Current assets rose 10% and stood at Rs 2 billion, while fixed assets fell 8% and stood at Rs 168 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 8%.

TIMEX GROUP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	605	813	34.3
Current Liabilities	Rs m	1,083	943	-12.9
Long-term Debt	Rs m	17	18	9.0
Total Liabilities	Rs m	1,775	1,912	7.8
Current assets	Rs m	1,592	1,744	9.6
Fixed Assets	Rs m	183	168	-8.1
Total Assets	Rs m	1,775	1,912	7.8

TIMEX GROUP Cash Flow Statement Analysis

• TIMEX GROUP's cash flow from operating activities (CFO) during FY24 stood at Rs 324 million, an improvement of 229.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -13 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -284 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 26 million from the Rs 9 million net cash flows seen during FY23.

TIMEX GROUP 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	98	324	229.5%
Cash Flow from Investing Activities	Rs m	-13	-13	-
Cash Flow from Financing Activities	Rs m	-76	-284	-
Net Cash Flow	Rs m	9	26	179.8%

Current Valuations for TIMEX GROUP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.1, an decline from the EPS of Rs 4.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 148.5, stands at 78.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.4 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 66.9 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	38.0	41.5
TTM Earnings per share	Rs	4.6	2.1
Diluted earnings per share	Rs	4.6	2.1
Price to Cash Flow	x	24.4	66.9
TTM P/E ratio	x	26.3	78.8
Price / Book Value ratio	x	18.8	20.1
Market Cap	Rs m	11,357	16,326
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TIMEX GROUP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.5x 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 improved and stood at 8.1x during FY24, from 6.5x 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 declined and down at 25.6% during FY24, from 76.9% 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 declined and down at 38.1% during FY24, from 56.3% 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 12.9% during FY24, from 29.2% 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	1.5	1.8
Debtors’ Days	Days	499	446
Interest coverage	x	6.5	8.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	29.2	12.9
Return on equity	%	76.9	25.6
Return on capital employed	%	56.3	38.1

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

TIMEX GROUP Share Price Performance

Over the last one year, TIMEX GROUP share price has moved down from Rs 170.7 to Rs 148.5, registering a loss of Rs 22.2 or around 13.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 58,508.1 (up 0.2%). Over the last one year it has moved up from 43,196.4 to 58,508.1, a gain of 15,312 points (up 35.4%).

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

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