TVS MOTORS 2023-24 Annual Report Analysis

Tue, 16 Jul

TVS MOTORS 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.

TVS MOTORS Income Statement Analysis

• Operating income during the year rose 22.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY24 as against 12.6% in FY23.
• Depreciation charges increased by 13.5% and finance costs increased by 40.9% YoY, respectively.
• Other income declined by 3.8% YoY.
• Net profit for the year grew by 35.8% YoY.
• Net profit margins during the year grew from 4.1% in FY23 to 4.5% in FY24.

TVS MOTORS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	319,740	391,447	22.4%
Other income	Rs m	1,380	1,328	-3.8%
Total Revenues	Rs m	321,120	392,775	22.3%
Gross profit	Rs m	40,248	54,730	36.0%
Depreciation	Rs m	8,589	9,751	13.5%
Interest	Rs m	13,679	19,277	40.9%
Profit before tax	Rs m	19,360	27,029	39.6%
Tax	Rs m	6,266	9,244	47.5%
Profit after tax	Rs m	13,095	17,785	35.8%
Gross profit margin	%	12.6	14.0
Effective tax rate	%	32.4	34.2
Net profit margin	%	4.1	4.5

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TVS MOTORS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 211 billion as compared to Rs 192 billion in FY23, thereby witnessing an increase of 9.7%.
• Long-term debt stood at Rs 126 billion as compared to Rs 91 billion during FY23, a growth of 39.3%.
• Current assets rose 26% and stood at Rs 215 billion, while fixed assets rose 13% and stood at Rs 203 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 418 billion as against Rs 349 billion during FY23, thereby witnessing a growth of 20%.

TVS MOTORS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	55,050	67,835	23.2
Current Liabilities	Rs m	192,187	210,782	9.7
Long-term Debt	Rs m	90,641	126,293	39.3
Total Liabilities	Rs m	349,272	418,262	19.8
Current assets	Rs m	170,243	215,200	26.4
Fixed Assets	Rs m	179,029	203,062	13.4
Total Assets	Rs m	349,272	418,262	19.8

TVS MOTORS Cash Flow Statement Analysis

• TVS MOTORS's cash flow from operating activities (CFO) during FY24 stood at Rs -13 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -10 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 28 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 billion from the Rs 4 billion net cash flows seen during FY23.

TVS MOTORS 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	-44,048	-12,527	-
Cash Flow from Investing Activities	Rs m	-13,078	-10,014	-
Cash Flow from Financing Activities	Rs m	61,181	27,586	-54.9%
Net Cash Flow	Rs m	4,055	5,046	24.4%

Current Valuations for TVS MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.4, an improvement from the EPS of Rs 27.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,450.0, stands at 63.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.2 times, while the price to sales ratio stands at 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 29.2 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	673.0	823.9
TTM Earnings per share	Rs	27.6	37.4
Diluted earnings per share	Rs	27.6	37.4
Price to Cash Flow	x	23.6	29.2
TTM P/E ratio	x	37.9	63.9
Price / Book Value ratio	x	7.6	11.9
Market Cap	Rs m	419,526	805,011
Dividends per share (Unadj.)	Rs	5.0	8.0

Ratio Analysis for TVS MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY24, from 0.9x 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 2.4x during FY24, from 2.4x 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 26.2% during FY24, from 23.8% 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 23.9% during FY24, from 22.7% 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 8.9% during FY24, from 7.7% 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	0.9	1.0
Debtors’ Days	Days	1	2
Interest coverage	x	2.4	2.4
Debt to equity ratio	x	1.6	1.9
Return on assets	%	7.7	8.9
Return on equity	%	23.8	26.2
Return on capital employed	%	22.7	23.9

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

TVS MOTORS Share Price Performance

Over the last one year, TVS MOTORS share price has moved up from Rs 1,348.8 to Rs 2,450.0, registering a gain of Rs 1,101.2 or around 81.6%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 57,883.5 (up 0.4%). Over the last one year it has moved up from 35,790.0 to 57,883.5, a gain of 22,094 points (up 61.7%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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