TRANSPEK INDUSTRIES 2023-24 Annual Report Analysis

Wed, 9 Oct

TRANSPEK INDUSTRIES 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.

TRANSPEK INDUSTRIES Income Statement Analysis

• Operating income during the year fell 29.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.2% in FY24 as against 17.8% in FY23.
• Depreciation charges increased by 13.9% and finance costs decreased by 25.4% YoY, respectively.
• Other income grew by 40.8% YoY.
• Net profit for the year declined by 53.8% YoY.
• Net profit margins during the year declined from 10.1% in FY23 to 6.7% in FY24.

TRANSPEK INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,269	5,796	-29.9%
Other income	Rs m	179	252	40.8%
Total Revenues	Rs m	8,448	6,048	-28.4%
Gross profit	Rs m	1,472	823	-44.1%
Depreciation	Rs m	330	376	13.9%
Interest	Rs m	192	144	-25.4%
Profit before tax	Rs m	1,128	555	-50.8%
Tax	Rs m	293	170	-42.2%
Profit after tax	Rs m	835	386	-53.8%
Gross profit margin	%	17.8	14.2
Effective tax rate	%	26.0	30.5
Net profit margin	%	10.1	6.7

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TRANSPEK INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -17.0%.
• Long-term debt down at Rs 197 million as compared to Rs 276 million during FY23, a fall of 28.6%.
• Current assets fell 9% and stood at Rs 2 billion, while fixed assets rose 15% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 9%.

TRANSPEK INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,866	6,734	14.8
Current Liabilities	Rs m	1,356	1,125	-17.0
Long-term Debt	Rs m	276	197	-28.6
Total Liabilities	Rs m	8,869	9,657	8.9
Current assets	Rs m	2,344	2,136	-8.9
Fixed Assets	Rs m	6,525	7,520	15.3
Total Assets	Rs m	8,869	9,657	8.9

TRANSPEK INDUSTRIES Cash Flow Statement Analysis

• TRANSPEK INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 978 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -315 million, an improvement of 142.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -637 million, an improvement of 32% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 26 million from the Rs 39 million net cash flows seen during FY23.

TRANSPEK INDUSTRIES 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	1,108	978	-11.8%
Cash Flow from Investing Activities	Rs m	-130	-315	-
Cash Flow from Financing Activities	Rs m	-939	-637	-
Net Cash Flow	Rs m	39	26	-33.7%

Current Valuations for TRANSPEK INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 69.0, an decline from the EPS of Rs 149.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,661.4, stands at 29.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 13.7 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	1,479.2	1,036.9
TTM Earnings per share	Rs	149.3	69.0
Diluted earnings per share	Rs	149.5	69.0
Price to Cash Flow	x	7.1	13.7
TTM P/E ratio	x	9.8	29.0
Price / Book Value ratio	x	1.6	1.6
Market Cap	Rs m	9,540	10,468
Dividends per share (Unadj.)	Rs	27.5	14.0

Ratio Analysis for TRANSPEK INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.7x 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 4.9x during FY24, from 6.9x 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 5.7% during FY24, from 14.2% 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 10.1% during FY24, from 21.5% 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 declined and down at 5.5% during FY24, from 11.6% 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	1.7	1.9
Debtors’ Days	Days	522	578
Interest coverage	x	6.9	4.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	5.5
Return on equity	%	14.2	5.7
Return on capital employed	%	21.5	10.1

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

TRANSPEK INDUSTRIES Share Price Performance

Over the last one year, TRANSPEK INDUSTRIES share price has moved down from Rs 1,859.1 to Rs 1,661.4, registering a loss of Rs 197.8 or around 10.6%.

Overall, the S&P BSE SENSEX is up 25.5% over the year.

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