TOWER INFRASTRUCTURE TRUST 2023-24 Annual Report Analysis

Wed, 3 Jul

TOWER INFRASTRUCTURE TRUST 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.

TOWER INFRASTRUCTURE TRUST Income Statement Analysis

• Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 14.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 37.6% in FY24 as against 38.2% in FY23.
• Depreciation charges increased by 13.2% and finance costs increased by 20.1% YoY, respectively.
• Other income grew by 226.9% YoY.
• Net profit for the year grew by 40.5% YoY.
• Net profit margins during the year grew from 7.2% in FY23 to 8.7% in FY24.

TOWER INFRASTRUCTURE TRUST Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	110,998	128,775	16.0%
Other income	Rs m	1,448	4,734	226.9%
Total Revenues	Rs m	112,446	133,509	18.7%
Gross profit	Rs m	42,361	48,408	14.3%
Depreciation	Rs m	15,060	17,047	13.2%
Interest	Rs m	20,821	25,001	20.1%
Profit before tax	Rs m	7,928	11,094	39.9%
Tax	Rs m	-39	-98	NA
Profit after tax	Rs m	7,967	11,192	40.5%
Gross profit margin	%	38.2	37.6
Effective tax rate	%	-0.5	-0.9
Net profit margin	%	7.2	8.7

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TOWER INFRASTRUCTURE TRUST Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 42 billion as compared to Rs 34 billion in FY23, thereby witnessing an increase of 21.5%.
• Long-term debt stood at Rs 283 billion as compared to Rs 275 billion during FY23, a growth of 2.6%.
• Current assets rose 20% and stood at Rs 21 billion, while fixed assets fell 4% and stood at Rs 476 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 497 billion as against Rs 513 billion during FY23, thereby witnessing a fall of 3%.

TOWER INFRASTRUCTURE TRUST Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	169,859	133,697	-21.3
Current Liabilities	Rs m	34,475	41,876	21.5
Long-term Debt	Rs m	275,213	282,503	2.6
Total Liabilities	Rs m	513,311	496,571	-3.3
Current assets	Rs m	17,631	21,071	19.5
Fixed Assets	Rs m	495,680	475,500	-4.1
Total Assets	Rs m	513,311	496,571	-3.3

TOWER INFRASTRUCTURE TRUST Cash Flow Statement Analysis

• TOWER INFRASTRUCTURE TRUST's cash flow from operating activities (CFO) during FY24 stood at Rs 58 billion, an improvement of 33.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -55 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 704 million from the Rs -426 million net cash flows seen during FY23.

TOWER INFRASTRUCTURE TRUST 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	43,564	58,317	33.9%
Cash Flow from Investing Activities	Rs m	-69,968	-2,944	-
Cash Flow from Financing Activities	Rs m	25,964	-54,670	-
Net Cash Flow	Rs m	-426	704	-

Current Valuations for TOWER INFRASTRUCTURE TRUST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.3, an improvement from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 148.0, stands at 34.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	42.6	49.5
TTM Earnings per share	Rs	3.1	4.3
Diluted earnings per share	Rs	3.1	4.3
Price to Cash Flow	x	0.0	11.8
TTM P/E ratio	x	0.0	34.4
Price / Book Value ratio	x	0.0	2.5
Market Cap	Rs m	0	332,533
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TOWER INFRASTRUCTURE TRUST

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.5x 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 1.4x during FY24, from 1.4x 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 8.4% during FY24, from 4.7% 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 8.7% during FY24, from 6.5% 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 7.3% during FY24, from 5.6% 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	0.5	0.5
Debtors’ Days	Days	6	3
Interest coverage	x	1.4	1.4
Debt to equity ratio	x	1.6	2.1
Return on assets	%	5.6	7.3
Return on equity	%	4.7	8.4
Return on capital employed	%	6.5	8.7

To see how TOWER INFRASTRUCTURE TRUST has performed over the last 5 years, please visit here.

TOWER INFRASTRUCTURE TRUST Share Price Performance

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(To know more, check out historical annual results for TOWER INFRASTRUCTURE TRUST and quarterly results for TOWER INFRASTRUCTURE TRUST)