TVS SUPPLY CHAIN 2023-24 Annual Report Analysis

Tue, 23 Jul

TVS SUPPLY CHAIN 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 SUPPLY CHAIN Income Statement Analysis

• Operating income during the year fell 7.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 7.3% in FY24 as against 6.6% in FY23.
• Depreciation charges increased by 11.0% and finance costs increased by 9.1% YoY, respectively.
• Other income declined by 25.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.5% in FY23 to 0.6% in FY24.

TVS SUPPLY CHAIN Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	99,944	92,000	-7.9%
Other income	Rs m	756	566	-25.2%
Total Revenues	Rs m	100,700	92,565	-8.1%
Gross profit	Rs m	6,644	6,742	1.5%
Depreciation	Rs m	5,016	5,567	11.0%
Interest	Rs m	1,926	2,101	9.1%
Profit before tax	Rs m	460	-361	NA
Tax	Rs m	-17	217	NA
Profit after tax	Rs m	477	-577	NA
Gross profit margin	%	6.6	7.3
Effective tax rate	%	-3.7	-60.0
Net profit margin	%	0.5	-0.6

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TVS SUPPLY CHAIN Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 29 billion as compared to Rs 38 billion in FY23, thereby witnessing an decrease of -24.4%.
• Long-term debt down at Rs 28 million as compared to Rs 5 billion during FY23, a fall of 99.4%.
• Current assets fell 10% and stood at Rs 31 billion, while fixed assets fell 3% and stood at Rs 26 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 57 billion as against Rs 61 billion during FY23, thereby witnessing a fall of 7%.

TVS SUPPLY CHAIN Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,687	17,793	166.1
Current Liabilities	Rs m	38,007	28,719	-24.4
Long-term Debt	Rs m	4,986	28	-99.4
Total Liabilities	Rs m	60,866	56,792	-6.7
Current assets	Rs m	34,542	31,191	-9.7
Fixed Assets	Rs m	26,325	25,601	-2.7
Total Assets	Rs m	60,866	56,792	-6.7

TVS SUPPLY CHAIN Cash Flow Statement Analysis

• TVS SUPPLY CHAIN's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -6 billion from the Rs 920 million net cash flows seen during FY23.

TVS SUPPLY CHAIN 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	7,337	1,276	-82.6%
Cash Flow from Investing Activities	Rs m	-2,335	-1,222	-
Cash Flow from Financing Activities	Rs m	-4,194	-5,918	-
Net Cash Flow	Rs m	920	-5,764	-

Current Valuations for TVS SUPPLY CHAIN

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.3, an decline from the EPS of Rs 1.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 184.4, stands at -106.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 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	274.6	209.0
TTM Earnings per share	Rs	1.3	-1.3
Diluted earnings per share	Rs	1.1	-1.3
Price to Cash Flow	x	0.0	17.8
TTM P/E ratio	x	0.0	-106.6
Price / Book Value ratio	x	0.0	5.0
Market Cap	Rs m	0	88,779
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TVS SUPPLY CHAIN

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x 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 0.8x during FY24, from 1.2x 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 -3.2% during FY24, from 7.1% 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 9.8% during FY24, from 20.4% 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 2.7% during FY24, from 3.9% 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	0.9	1.1
Debtors’ Days	Days	4	6
Interest coverage	x	1.2	0.8
Debt to equity ratio	x	0.7	0.0
Return on assets	%	3.9	2.7
Return on equity	%	7.1	-3.2
Return on capital employed	%	20.4	9.8

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

TVS SUPPLY CHAIN Share Price Performance

Over the last one year, TVS SUPPLY CHAIN share price has moved up from Rs 0.0 to Rs 184.4, registering a gain of Rs 184.4 or around 0.0%.

Overall, the S&P BSE SENSEX is up 18.9% over the year.

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