BLACK BOX 2023-24 Annual Report Analysis

Tue, 17 Sep

BLACK BOX 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.

BLACK BOX Income Statement Analysis

• Operating income during the year fell 93.9% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 0.1% in FY24 as against 3.3% in FY23.
• Depreciation charges decreased by 92.6% and finance costs decreased by 94.0% YoY, respectively.
• Other income declined by 63.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.4% in FY23 to 3.9% in FY24.

BLACK BOX Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	62,876	3,867	-93.9%
Other income	Rs m	379	140	-63.1%
Total Revenues	Rs m	63,255	4,006	-93.7%
Gross profit	Rs m	2,103	-5	NA
Depreciation	Rs m	1,075	79	-92.6%
Interest	Rs m	1,113	67	-94.0%
Profit before tax	Rs m	295	-11	NA
Tax	Rs m	58	139	141.2%
Profit after tax	Rs m	237	-150	NA
Gross profit margin	%	3.3	-0.1
Effective tax rate	%	19.5	-1,249.5
Net profit margin	%	0.4	-3.9

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BLACK BOX Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 20 billion in FY23, thereby witnessing an decrease of -93.7%.
• Long-term debt down at Rs 5 million as compared to Rs 3 billion during FY23, a fall of 99.9%.
• Current assets fell 92% and stood at Rs 2 billion, while fixed assets fell 67% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 30 billion during FY23, thereby witnessing a fall of 84%.

BLACK BOX Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,948	3,132	6.2
Current Liabilities	Rs m	20,435	1,286	-93.7
Long-term Debt	Rs m	3,050	5	-99.9
Total Liabilities	Rs m	29,825	4,752	-84.1
Current assets	Rs m	20,839	1,744	-91.6
Fixed Assets	Rs m	8,986	3,009	-66.5
Total Assets	Rs m	29,825	4,752	-84.1

BLACK BOX Cash Flow Statement Analysis

• BLACK BOX's cash flow from operating activities (CFO) during FY24 stood at Rs 240 million, an improvement of 33.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -210 million, an improvement of 67% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 0 million from the Rs -1 billion net cash flows seen during FY23.

BLACK BOX 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	180	240	33.7%
Cash Flow from Investing Activities	Rs m	193	-30	-
Cash Flow from Financing Activities	Rs m	-634	-210	-
Net Cash Flow	Rs m	-1,018	0	-

Current Valuations for BLACK BOX

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.9, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 495.8, stands at 56.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 26.6 times, while the price to sales ratio stands at 21.5 times.
• The company's price to cash flow (P/CF) ratio stood at -479.5 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	374.5	23.0
TTM Earnings per share	Rs	1.4	-0.9
Diluted earnings per share	Rs	1.4	-0.9
Price to Cash Flow	x	11.9	-479.5
TTM P/E ratio	x	65.8	56.0
Price / Book Value ratio	x	8.1	10.8
Market Cap	Rs m	23,813	33,899
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for BLACK BOX

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.0x 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 0.8x during FY24, from 1.3x 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 -4.8% during FY24, from 8.0% 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 1.8% during FY24, from 23.5% 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 -1.7% during FY24, from 4.5% 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	1.0	1.4
Debtors’ Days	Days	2	9
Interest coverage	x	1.3	0.8
Debt to equity ratio	x	1.0	0.0
Return on assets	%	4.5	-1.7
Return on equity	%	8.0	-4.8
Return on capital employed	%	23.5	1.8

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

BLACK BOX Share Price Performance

Over the last one year, BLACK BOX share price has moved up from Rs 195.9 to Rs 495.8, registering a gain of Rs 299.9 or around 153.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 20,152.2 (up 0.1%). Over the last one year it has moved up from 15,024.3 to 20,152.2, a gain of 5,128 points (up 34.1%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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