TOURISM FINA 2023-24 Annual Report Analysis

Mon, 29 Jul

TOURISM FINA has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

TOURISM FINA Income Statement Analysis

• Interest income during the year rose 4.5% on a year-on-year (YoY) basis.
• Interest expenses were up by 10.6% YoY during the same period.
• Operating expenses declined by 11.0% YoY during the year.
• The company's net interest income (NII) increased by 0.5% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a decline and stood at 6.6% in FY24 as against 6.6% in FY23.
• Other income declined by 27.1% YoY during the year.
• Net profit for the year increased by 3.6% YoY.
• Net profit margins during the year declined to 37.7% in FY24 from 38.0% in FY23.

TOURISM FINA Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	2,315	2,419	4.5%
Other Income	Rs m	3	2	-27.1%
Interest Expense	Rs m	906	1,003	10.6%
Net Interest Income	Rs m	1,408	1,416	0.5%
Operating Expense	Rs m	300	267	-11.0%
Pre-provision Operating Profit	Rs m	1,110	1,150	3.6%
Provisions & Contingencies	Rs m	124	159	28.0%
Profit before tax	Rs m	1,094	1,139	4.1%
Tax	Rs m	214	228	6.3%
Profit after tax	Rs m	880	911	3.6%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	6.6	6.6
Net profit margin	%	38.0	37.7

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TOURISM FINA Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 15.6 bn as compared to Rs 15.8 bn during FY23, a fall of 1.7%.
• Cost of deposits for TOURISM FINA rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 6.0 bn during the year from Rs 5.5 bn in FY23.
• Borrowing stood at Rs 0 m, a fall of 100.0% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 22.2 bn as against Rs 22.3 bn during FY23, thereby witnessing a fall of 0.3%.

TOURISM FINA Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	10,171	10,896	7.1%
Advances	Rs m	15,824	15,557	-1.7%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	5,461	6,018	10.2%
Borrowings	Rs m	300	0	-100.0%
Total Assets	Rs m	22,305	22,233	-0.3%

Current Valuations for TOURISM FINA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.1, an improvement from the EPS of Rs 9.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 191.1, stands at 16.7 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.6 times, while the price to income ratio stands at 6.3 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	25.6	26.8
Earnings per share (Unadj.)	Rs	9.7	10.1
Diluted earnings per share	Rs	9.5	9.8
Avg P/E ratio	Rs	7.2	16.7
Avg P/ABV ratio	Rs	0.8	1.6
Avg Market Cap	Rs	6,349	15,223
Dividends per share (Unadj.)	Rs	2.40	2.50

Ratio Analysis for TOURISM FINA

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio deteriorated and stood at 1,555,695.2x during FY24, from 1,582,406.2x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.00x during FY24, from 0.03x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): TOURISM FINA's capital adequacy ratio (CAR) was at 59.0% as on 31 March 2024 as compared to 62.7% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company deteriorated and stood at 8.4% during FY24, from 8.6% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 4.10% during FY24, from 3.94% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 10.49% during FY24, from 9.47% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. TOURISM FINA's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of TOURISM FINA was 1.5% in financial year 2024. This compared with 3.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	1,582,406.2	1,555,695.2
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	62.7	59.0
Return on Equity	%	8.6	8.4
Return on Assets	%	3.9	4.1
Return on Capital Employed	%	9.5	10.5
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	3.0	1.5
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how TOURISM FINA has performed over the last 5 years, please visit here.

TOURISM FINA Share Price Performance

Over the last one year, TOURISM FINA share price has moved up from Rs 87.9 to Rs 191.1, registering a gain of Rs 103.2 or around 117.4%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, you can check out historical annual results for TOURISM FINA here and quarterly results for TOURISM FINA here)