TATA ELXSI 2023-24 Annual Report Analysis

Tue, 18 Jun

TATA ELXSI 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.

TATA ELXSI Income Statement Analysis

• Operating income during the year rose 13.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.5% in FY24 as against 30.5% in FY23.
• Depreciation charges increased by 22.2% and finance costs increased by 22.1% YoY, respectively.
• Other income grew by 58.2% YoY.
• Net profit for the year grew by 4.9% YoY.
• Net profit margins during the year declined from 24.0% in FY23 to 22.3% in FY24.

TATA ELXSI Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	31,447	35,521	13.0%
Other income	Rs m	771	1,220	58.2%
Total Revenues	Rs m	32,218	36,741	14.0%
Gross profit	Rs m	9,591	10,473	9.2%
Depreciation	Rs m	814	994	22.2%
Interest	Rs m	173	211	22.1%
Profit before tax	Rs m	9,375	10,487	11.9%
Tax	Rs m	1,823	2,564	40.7%
Profit after tax	Rs m	7,552	7,922	4.9%
Gross profit margin	%	30.5	29.5
Effective tax rate	%	19.4	24.5
Net profit margin	%	24.0	22.3

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TATA ELXSI Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -6.8%.
• Current assets rose 10% and stood at Rs 25 billion, while fixed assets rose 43% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 32 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 15%.

TATA ELXSI Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,858	24,906	19.4
Current Liabilities	Rs m	4,786	4,459	-6.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	27,506	31,631	15.0
Current assets	Rs m	23,135	25,367	9.6
Fixed Assets	Rs m	4,371	6,264	43.3
Total Assets	Rs m	27,506	31,631	15.0

TATA ELXSI Cash Flow Statement Analysis

• TATA ELXSI's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 44.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 33.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -6 million from the Rs -172 million net cash flows seen during FY23.

TATA ELXSI 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	4,869	7,012	44.0%
Cash Flow from Investing Activities	Rs m	-2,019	-2,701	-
Cash Flow from Financing Activities	Rs m	-3,031	-4,278	-
Net Cash Flow	Rs m	-172	-6	-

Current Valuations for TATA ELXSI

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 127.2, an improvement from the EPS of Rs 121.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,330.0, stands at 57.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 18.3 times, while the price to sales ratio stands at 12.9 times.
• The company's price to cash flow (P/CF) ratio stood at 53.0 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	504.9	570.4
TTM Earnings per share	Rs	121.3	127.2
Diluted earnings per share	Rs	121.3	127.2
Price to Cash Flow	x	44.4	53.0
TTM P/E ratio	x	49.2	57.6
Price / Book Value ratio	x	24.6	19.0
Market Cap	Rs m	512,799	472,278
Dividends per share (Unadj.)	Rs	60.6	70.0

Ratio Analysis for TATA ELXSI

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.7x during FY24, from 4.8x 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 50.7x during FY24, from 55.2x 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 declined and down at 31.8% during FY24, from 36.2% 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 43.0% during FY24, from 45.8% 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 25.7% during FY24, from 28.1% 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	4.8	5.7
Debtors’ Days	Days	1,133	998
Interest coverage	x	55.2	50.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	28.1	25.7
Return on equity	%	36.2	31.8
Return on capital employed	%	45.8	43.0

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

TATA ELXSI Share Price Performance

Over the last one year, TATA ELXSI share price has moved down from Rs 7,633.5 to Rs 7,330.0, registering a loss of Rs 303.5 or around 4.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 35,589.7 (up 0.2%). Over the last one year it has moved up from 28,971.7 to 35,589.7, a gain of 6,618 points (up 22.8%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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