TVS ELECTRON 2023-24 Annual Report Analysis

Tue, 23 Jul

TVS ELECTRON 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 ELECTRON Income Statement Analysis

• Operating income during the year rose 3.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 51.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.6% in FY24 as against 5.6% in FY23.
• Depreciation charges increased by 53.3% and finance costs increased by 43.1% YoY, respectively.
• Other income grew by 72.5% YoY.
• Net profit for the year declined by 97.2% YoY.
• Net profit margins during the year declined from 2.7% in FY23 to 0.1% in FY24.

TVS ELECTRON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,535	3,660	3.6%
Other income	Rs m	15	26	72.5%
Total Revenues	Rs m	3,550	3,687	3.8%
Gross profit	Rs m	198	95	-51.9%
Depreciation	Rs m	71	109	53.3%
Interest	Rs m	14	20	43.1%
Profit before tax	Rs m	128	-7	NA
Tax	Rs m	33	-10	NA
Profit after tax	Rs m	95	3	-97.2%
Gross profit margin	%	5.6	2.6
Effective tax rate	%	25.9	139.7
Net profit margin	%	2.7	0.1

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TVS ELECTRON Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 17.5%.
• Long-term debt stood at Rs 150 million as compared to Rs 62 million during FY23, a growth of 142.5%.
• Current assets rose 15% and stood at Rs 2 billion, while fixed assets fell 2% and stood at Rs 645 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 10%.

TVS ELECTRON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,018	988	-3.0
Current Liabilities	Rs m	1,102	1,295	17.5
Long-term Debt	Rs m	62	150	142.5
Total Liabilities	Rs m	2,201	2,423	10.1
Current assets	Rs m	1,541	1,778	15.4
Fixed Assets	Rs m	659	645	-2.2
Total Assets	Rs m	2,201	2,423	10.1

TVS ELECTRON Cash Flow Statement Analysis

• TVS ELECTRON's cash flow from operating activities (CFO) during FY24 stood at Rs 139 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -402 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 189 million, an improvement of 1,959% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -73 million from the Rs -13 million net cash flows seen during FY23.

TVS ELECTRON 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	-83	139	-
Cash Flow from Investing Activities	Rs m	61	-402	-
Cash Flow from Financing Activities	Rs m	9	189	1,958.7%
Net Cash Flow	Rs m	-13	-73	-

Current Valuations for TVS ELECTRON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 342.9, stands at 2,368.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.5 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 55.8 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	189.5	196.3
TTM Earnings per share	Rs	5.1	0.1
Diluted earnings per share	Rs	5.1	0.1
Price to Cash Flow	x	37.3	55.8
TTM P/E ratio	x	65.1	2,368.6
Price / Book Value ratio	x	5.6	6.3
Market Cap	Rs m	5,730	6,220
Dividends per share (Unadj.)	Rs	2.0	1.0

Ratio Analysis for TVS ELECTRON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x 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 0.7x during FY24, from 10.4x 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 declined and down at 0.3% during FY24, from 9.4% 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 1.1% during FY24, from 13.2% 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 0.9% during FY24, from 4.9% 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	1.4
Debtors’ Days	Days	480	626
Interest coverage	x	10.4	0.7
Debt to equity ratio	x	0.1	0.2
Return on assets	%	4.9	0.9
Return on equity	%	9.4	0.3
Return on capital employed	%	13.2	1.1

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

TVS ELECTRON Share Price Performance

Over the last one year, TVS ELECTRON share price has moved down from Rs 391.1 to Rs 342.9, registering a loss of Rs 48.2 or around 12.3%.

Overall, the S&P BSE SENSEX is up 19.7% over the year.

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