TRF 2023-24 Annual Report Analysis

Wed, 17 Jul

TRF 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.

TRF Income Statement Analysis

• Operating income during the year fell 21.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 77.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY24 as against 30.5% in FY23.
• Depreciation charges increased by 11.0% and finance costs decreased by 44.0% YoY, respectively.
• Other income declined by 15.0% YoY.
• Net profit for the year declined by 54.8% YoY.
• Net profit margins during the year declined from 49.4% in FY23 to 28.3% in FY24.

TRF Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,771	1,400	-21.0%
Other income	Rs m	535	455	-15.0%
Total Revenues	Rs m	2,306	1,855	-19.6%
Gross profit	Rs m	541	123	-77.3%
Depreciation	Rs m	20	22	11.0%
Interest	Rs m	248	139	-44.0%
Profit before tax	Rs m	808	417	-48.5%
Tax	Rs m	-67	21	NA
Profit after tax	Rs m	875	396	-54.8%
Gross profit margin	%	30.5	8.8
Effective tax rate	%	-8.3	5.0
Net profit margin	%	49.4	28.3

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TRF Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -16.6%.
• Long-term debt stood at Rs 942 million as compared to Rs 838 million during FY23, a growth of 12.3%.
• Current assets rose 4% and stood at Rs 3 billion, while fixed assets fell 8% and stood at Rs 413 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 fall of 1%.

TRF Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	220	391	77.7
Current Liabilities	Rs m	1,848	1,541	-16.6
Long-term Debt	Rs m	838	942	12.3
Total Liabilities	Rs m	3,139	3,095	-1.4
Current assets	Rs m	2,569	2,682	4.4
Fixed Assets	Rs m	451	413	-8.5
Total Assets	Rs m	3,139	3,095	-1.4

TRF Cash Flow Statement Analysis

• TRF's cash flow from operating activities (CFO) during FY24 stood at Rs 339 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 156 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 5 million, an improvement of 102% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 492 million from the Rs 27 million net cash flows seen during FY23.

TRF 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	831	339	-59.2%
Cash Flow from Investing Activities	Rs m	-522	156	-
Cash Flow from Financing Activities	Rs m	-303	5	-
Net Cash Flow	Rs m	27	492	1,746.9%

Current Valuations for TRF

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.0, an decline from the EPS of Rs 79.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 519.6, stands at 14.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.6 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 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	161.0	127.2
TTM Earnings per share	Rs	79.6	36.0
Diluted earnings per share	Rs	79.5	36.0
Price to Cash Flow	x	2.0	8.8
TTM P/E ratio	x	2.0	14.4
Price / Book Value ratio	x	12.2	9.4
Market Cap	Rs m	2,681	3,674
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TRF

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY24, from 1.4x 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 deteriorated and stood at 4.0x during FY24, from 4.3x 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 101.3% during FY24, from 398.1% 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 41.7% during FY24, from 99.8% 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 declined and down at 17.3% during FY24, from 35.8% 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	1.4	1.7
Debtors’ Days	Days	1,533	2,583
Interest coverage	x	4.3	4.0
Debt to equity ratio	x	3.8	2.4
Return on assets	%	35.8	17.3
Return on equity	%	398.1	101.3
Return on capital employed	%	99.8	41.7

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

TRF Share Price Performance

Over the last one year, TRF share price has moved up from Rs 190.1 to Rs 519.6, registering a gain of Rs 329.5 or around 173.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,460.1 (down 0.5%). Over the last one year it has moved up from 41,426.7 to 74,460.1, a gain of 33,033 points (up 79.7%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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