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TOLINS TYRES LTD. 2023-24 Annual Report Analysis

Wed, 18 Sep

TOLINS TYRES LTD. 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.

TOLINS TYRES LTD. Income Statement Analysis

• Operating income during the year rose 92.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 283.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.8% in FY24 as against 10.4% in FY23.
• Depreciation charges increased by 108.9% and finance costs increased by 143.7% YoY, respectively.
• Other income grew by 2.9% YoY.
• Net profit for the year grew by 421.0% YoY.
• Net profit margins during the year grew from 4.2% in FY23 to 11.4% in FY24.

TOLINS TYRES LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,182	2,272	92.2%
Other income	Rs m	14	15	2.9%
Total Revenues	Rs m	1,197	2,287	91.1%
Gross profit	Rs m	123	472	283.6%
Depreciation	Rs m	16	34	108.9%
Interest	Rs m	51	124	143.7%
Profit before tax	Rs m	70	329	368.2%
Tax	Rs m	20	69	238.7%
Profit after tax	Rs m	50	260	421.0%
Gross profit margin	%	10.4	20.8
Effective tax rate	%	29.0	20.9
Net profit margin	%	4.2	11.4

For Investors: Our Big Prediction

TOLINS TYRES LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 512 million in FY23, thereby witnessing an increase of 117.8%.
• Long-term debt down at Rs 88 million as compared to Rs 131 million during FY23, a fall of 32.8%.
• Current assets rose 149% and stood at Rs 2 billion, while fixed assets rose 214% and stood at Rs 620 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 838 million during FY23, thereby witnessing a growth of 164%.

TOLINS TYRES LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	194	1,005	417.6
Current Liabilities	Rs m	512	1,115	117.8
Long-term Debt	Rs m	131	88	-32.8
Total Liabilities	Rs m	838	2,216	164.4
Current assets	Rs m	641	1,596	149.2
Fixed Assets	Rs m	198	620	213.6
Total Assets	Rs m	838	2,216	164.4

TOLINS TYRES LTD. Cash Flow Statement Analysis

• TOLINS TYRES LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -36 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -541 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 577 million, an improvement of 3,083% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 million from the Rs -1 million net cash flows seen during FY23.

TOLINS TYRES LTD. 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	18	-36	-
Cash Flow from Investing Activities	Rs m	0	-541	-
Cash Flow from Financing Activities	Rs m	-19	577	-
Net Cash Flow	Rs m	-1	5	-

Current Valuations for TOLINS TYRES LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.5, an decline from the EPS of Rs 99.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 216.1, stands at 32.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.5 times, while the price to sales ratio stands at 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 29.1 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	2,364.9	74.1
TTM Earnings per share	Rs	99.8	8.5
Diluted earnings per share	Rs	1.3	6.6
Price to Cash Flow	x	0.0	29.1
TTM P/E ratio	x	0.0	32.8
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	8,538
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TOLINS TYRES LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.3x 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 3.6x during FY24, from 2.4x 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 25.9% during FY24, from 25.7% 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 41.5% during FY24, from 37.3% 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 improved and stood at 17.3% during FY24, from 12.0% 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	1.3	1.4
Debtors’ Days	Days	74	103
Interest coverage	x	2.4	3.6
Debt to equity ratio	x	0.7	0.1
Return on assets	%	12.0	17.3
Return on equity	%	25.7	25.9
Return on capital employed	%	37.3	41.5

To see how TOLINS TYRES LTD. has performed over the last 5 years, please visit here.

TOLINS TYRES LTD. Share Price Performance

Over the last one year, TOLINS TYRES LTD. share price has moved up from Rs 0.0 to Rs 216.1, registering a gain of Rs 216.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for TOLINS TYRES LTD. and quarterly results for TOLINS TYRES LTD.)