TANFAC INDUSTRIES 2023-24 Annual Report Analysis

Mon, 14 Oct

TANFAC INDUSTRIES 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.

TANFAC INDUSTRIES Income Statement Analysis

• Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 5.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.0% in FY24 as against 20.3% in FY23.
• Depreciation charges increased by 10.6% and finance costs decreased by 16.6% YoY, respectively.
• Other income declined by 10.6% YoY.
• Net profit for the year declined by 6.5% YoY.
• Net profit margins during the year declined from 15.0% in FY23 to 13.9% in FY24.

TANFAC INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,749	3,781	0.9%
Other income	Rs m	79	71	-10.6%
Total Revenues	Rs m	3,829	3,852	0.6%
Gross profit	Rs m	761	719	-5.6%
Depreciation	Rs m	63	70	10.6%
Interest	Rs m	23	19	-16.6%
Profit before tax	Rs m	755	701	-7.2%
Tax	Rs m	193	176	-9.1%
Profit after tax	Rs m	561	525	-6.5%
Gross profit margin	%	20.3	19.0
Effective tax rate	%	25.6	25.1
Net profit margin	%	15.0	13.9

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TANFAC INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 837 million as compared to Rs 830 million in FY23, thereby witnessing an increase of 0.8%.
• Current assets rose 5% and stood at Rs 2 billion, while fixed assets rose 58% and stood at Rs 997 million 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 18%.

TANFAC INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,843	2,304	25.1
Current Liabilities	Rs m	830	837	0.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,716	3,192	17.5
Current assets	Rs m	2,086	2,195	5.2
Fixed Assets	Rs m	630	997	58.2
Total Assets	Rs m	2,716	3,192	17.5

TANFAC INDUSTRIES Cash Flow Statement Analysis

• TANFAC INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 342 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -304 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -72 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -33 million from the Rs -30 million net cash flows seen during FY23.

TANFAC INDUSTRIES 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	429	342	-20.3%
Cash Flow from Investing Activities	Rs m	-396	-304	-
Cash Flow from Financing Activities	Rs m	-64	-72	-
Net Cash Flow	Rs m	-30	-33	-

Current Valuations for TANFAC INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.6, an decline from the EPS of Rs 56.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,984.6, stands at 43.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 31.8 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	375.7	378.9
TTM Earnings per share	Rs	56.2	52.6
Diluted earnings per share	Rs	56.3	52.6
Price to Cash Flow	x	15.9	31.8
TTM P/E ratio	x	17.7	43.6
Price / Book Value ratio	x	4.5	8.2
Market Cap	Rs m	8,372	18,904
Dividends per share (Unadj.)	Rs	6.5	7.0

Ratio Analysis for TANFAC INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x 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 improved and stood at 38.2x during FY24, from 34.4x 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 declined and down at 22.8% during FY24, from 30.5% 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 31.2% during FY24, from 42.2% 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 17.0% during FY24, from 21.5% 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	2.5	2.6
Debtors’ Days	Days	494	590
Interest coverage	x	34.4	38.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	21.5	17.0
Return on equity	%	30.5	22.8
Return on capital employed	%	42.2	31.2

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

TANFAC INDUSTRIES Share Price Performance

Over the last one year, TANFAC INDUSTRIES share price has moved up from Rs 1,959.9 to Rs 1,984.6, registering a gain of Rs 24.8 or around 1.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,599.6 (down 0.1%). Over the last one year it has moved up from 23,197.7 to 33,599.6, a gain of 10,402 points (up 44.8%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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