TEXMACO RAIL 2023-24 Annual Report Analysis

Tue, 3 Sep

TEXMACO RAIL 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.

TEXMACO RAIL Income Statement Analysis

• Operating income during the year rose 56.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 130.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.8% in FY24 as against 4.6% in FY23.
• Depreciation charges increased by 8.5% and finance costs increased by 14.2% YoY, respectively.
• Other income grew by 38.5% YoY.
• Net profit for the year grew by 734.0% YoY.
• Net profit margins during the year grew from 0.5% in FY23 to 2.7% in FY24.

TEXMACO RAIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,433	35,029	56.1%
Other income	Rs m	682	945	38.5%
Total Revenues	Rs m	23,115	35,974	55.6%
Gross profit	Rs m	1,036	2,386	130.3%
Depreciation	Rs m	352	382	8.5%
Interest	Rs m	1,162	1,327	14.2%
Profit before tax	Rs m	204	1,622	694.6%
Tax	Rs m	89	660	643.4%
Profit after tax	Rs m	115	962	734.0%
Gross profit margin	%	4.6	6.8
Effective tax rate	%	43.5	40.7
Net profit margin	%	0.5	2.7

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TEXMACO RAIL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 13 billion as compared to Rs 17 billion in FY23, thereby witnessing an decrease of -23.0%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY23, a growth of 47.8%.
• Current assets rose 27% and stood at Rs 35 billion, while fixed assets rose 15% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 33 billion during FY23, thereby witnessing a growth of 25%.

TEXMACO RAIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,922	25,330	81.9
Current Liabilities	Rs m	17,317	13,329	-23.0
Long-term Debt	Rs m	1,636	2,417	47.8
Total Liabilities	Rs m	33,253	41,629	25.2
Current assets	Rs m	27,270	34,761	27.5
Fixed Assets	Rs m	5,983	6,868	14.8
Total Assets	Rs m	33,253	41,629	25.2

TEXMACO RAIL Cash Flow Statement Analysis

• TEXMACO RAIL's cash flow from operating activities (CFO) during FY24 stood at Rs 958 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -6 billion, an improvement of 732.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 billion, an improvement of 253% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -38 million from the Rs -253 million net cash flows seen during FY23.

TEXMACO RAIL 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	-1,028	958	-
Cash Flow from Investing Activities	Rs m	-760	-6,329	-
Cash Flow from Financing Activities	Rs m	1,510	5,330	253.0%
Net Cash Flow	Rs m	-253	-38	-

Current Valuations for TEXMACO RAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.4, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 236.7, stands at 80.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 40.8 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	69.7	87.7
TTM Earnings per share	Rs	0.4	2.4
Diluted earnings per share	Rs	0.3	2.4
Price to Cash Flow	x	36.3	40.8
TTM P/E ratio	x	147.2	80.9
Price / Book Value ratio	x	1.2	2.2
Market Cap	Rs m	16,407	54,773
Dividends per share (Unadj.)	Rs	0.2	0.5

Ratio Analysis for TEXMACO RAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 1.6x 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 2.2x during FY24, from 1.2x 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 3.8% during FY24, from 0.8% 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 10.6% during FY24, from 8.8% 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 5.5% during FY24, from 3.8% 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	1.6	2.6
Debtors’ Days	Days	1,277	919
Interest coverage	x	1.2	2.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	3.8	5.5
Return on equity	%	0.8	3.8
Return on capital employed	%	8.8	10.6

To see how TEXMACO RAIL has performed over the last 5 years, please visit here.

TEXMACO RAIL Share Price Performance

Over the last one year, TEXMACO RAIL share price has moved up from Rs 148.5 to Rs 236.7, registering a gain of Rs 88.3 or around 59.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,330.7 (up 1.0%). Over the last one year it has moved up from 45,406.6 to 73,330.7, a gain of 27,924 points (up 61.5%).

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for TEXMACO RAIL and quarterly results for TEXMACO RAIL)