UCAL FUEL 2023-24 Annual Report Analysis

Mon, 2 Sep

UCAL FUEL 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.

UCAL FUEL Income Statement Analysis

• Operating income during the year fell 41.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 23.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.1% in FY24 as against 7.0% in FY23.
• Depreciation charges decreased by 52.1% and finance costs decreased by 20.6% YoY, respectively.
• Other income declined by 3.3% YoY.
• Net profit for the year grew by 36.0% YoY.
• Net profit margins during the year grew from 0.1% in FY23 to 0.2% in FY24.

UCAL FUEL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,230	4,825	-41.4%
Other income	Rs m	91	88	-3.3%
Total Revenues	Rs m	8,321	4,913	-41.0%
Gross profit	Rs m	574	439	-23.5%
Depreciation	Rs m	380	182	-52.1%
Interest	Rs m	221	175	-20.6%
Profit before tax	Rs m	64	170	164.3%
Tax	Rs m	56	158	183.8%
Profit after tax	Rs m	9	12	36.0%
Gross profit margin	%	7.0	9.1
Effective tax rate	%	86.8	93.2
Net profit margin	%	0.1	0.2

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UCAL FUEL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -24.0%.
• Long-term debt stood at Rs 734 million as compared to Rs 623 million during FY23, a growth of 17.8%.
• Current assets fell 40% and stood at Rs 1 billion, while fixed assets fell 1% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 7 billion during FY23, thereby witnessing a fall of 13%.

UCAL FUEL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,933	3,542	-10.0
Current Liabilities	Rs m	3,037	2,309	-24.0
Long-term Debt	Rs m	623	734	17.8
Total Liabilities	Rs m	7,473	6,507	-12.9
Current assets	Rs m	2,328	1,392	-40.2
Fixed Assets	Rs m	5,146	5,116	-0.6
Total Assets	Rs m	7,473	6,507	-12.9

UCAL FUEL Cash Flow Statement Analysis

• UCAL FUEL's cash flow from operating activities (CFO) during FY24 stood at Rs 736 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -453 million, an improvement of 36.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -253 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 30 million from the Rs 409 million net cash flows seen during FY23.

UCAL FUEL 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	782	736	-5.9%
Cash Flow from Investing Activities	Rs m	-332	-453	-
Cash Flow from Financing Activities	Rs m	-89	-253	-
Net Cash Flow	Rs m	409	30	-92.7%

Current Valuations for UCAL FUEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 193.6, stands at -18.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 16.7 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	372.2	218.2
TTM Earnings per share	Rs	0.4	0.5
Diluted earnings per share	Rs	0.4	0.5
Price to Cash Flow	x	6.2	16.7
TTM P/E ratio	x	282.2	-18.7
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	2,784	3,246
Dividends per share (Unadj.)	Rs	2.0	0.0

Ratio Analysis for UCAL FUEL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY24, from 0.8x 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 improved and stood at 2.0x 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 improved and stood at 0.3% during FY24, from 0.2% 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 improved and stood at 8.1% during FY24, from 6.3% 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 2.9% during FY24, from 3.1% 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	0.8	0.6
Debtors’ Days	Days	527	577
Interest coverage	x	1.3	2.0
Debt to equity ratio	x	0.2	0.2
Return on assets	%	3.1	2.9
Return on equity	%	0.2	0.3
Return on capital employed	%	6.3	8.1

To see how UCAL FUEL has performed over the last 5 years, please visit here.

UCAL FUEL Share Price Performance

Over the last one year, UCAL FUEL share price has moved up from Rs 141.4 to Rs 193.6, registering a gain of Rs 52.2 or around 36.9%.

Overall, the S&P BSE SENSEX is up 27.0% over the year.

(To know more, check out historical annual results for UCAL FUEL and quarterly results for UCAL FUEL)