UPL 2023-24 Annual Report Analysis

Mon, 5 Aug

UPL 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.

UPL Income Statement Analysis

• Operating income during the year fell 19.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 60.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.4% in FY24 as against 19.0% in FY23.
• Depreciation charges increased by 8.5% and finance costs increased by 30.0% YoY, respectively.
• Other income grew by 1.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 8.2% in FY23 to 4.4% in FY24.

UPL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	535,760	430,980	-19.6%
Other income	Rs m	4,770	4,830	1.3%
Total Revenues	Rs m	540,530	435,810	-19.4%
Gross profit	Rs m	101,830	40,450	-60.3%
Depreciation	Rs m	25,470	27,630	8.5%
Interest	Rs m	29,630	38,520	30.0%
Profit before tax	Rs m	51,500	-20,870	NA
Tax	Rs m	7,360	-2,090	NA
Profit after tax	Rs m	44,140	-18,780	NA
Gross profit margin	%	19.0	9.4
Effective tax rate	%	14.3	10.0
Net profit margin	%	8.2	-4.4

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UPL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 269 billion as compared to Rs 290 billion in FY23, thereby witnessing an decrease of -7.5%.
• Long-term debt stood at Rs 270 billion as compared to Rs 231 billion during FY23, a growth of 16.7%.
• Current assets fell 6% and stood at Rs 393 billion, while fixed assets rose 2% and stood at Rs 446 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 840 billion as against Rs 859 billion during FY23, thereby witnessing a fall of 2%.

UPL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	268,380	247,870	-7.6
Current Liabilities	Rs m	290,370	268,610	-7.5
Long-term Debt	Rs m	231,300	269,960	16.7
Total Liabilities	Rs m	859,160	839,510	-2.3
Current assets	Rs m	419,880	392,990	-6.4
Fixed Assets	Rs m	438,880	446,230	1.7
Total Assets	Rs m	859,160	839,510	-2.3

UPL Cash Flow Statement Analysis

• UPL 's cash flow from operating activities (CFO) during FY24 stood at Rs 18 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -25 billion, an improvement of 66.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 103% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -240 million from the Rs 2 billion net cash flows seen during FY23.

UPL 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	77,510	18,220	-76.5%
Cash Flow from Investing Activities	Rs m	-14,900	-24,780	-
Cash Flow from Financing Activities	Rs m	-62,270	1,640	-
Net Cash Flow	Rs m	1,700	-240	-

Current Valuations for UPL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -25.0, an decline from the EPS of Rs 58.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 527.1, stands at -17.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 51.2 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	713.8	574.2
TTM Earnings per share	Rs	58.8	-25.0
Diluted earnings per share	Rs	58.8	-25.0
Price to Cash Flow	x	7.7	51.2
TTM P/E ratio	x	12.7	-17.3
Price / Book Value ratio	x	2.0	1.8
Market Cap	Rs m	546,367	453,536
Dividends per share (Unadj.)	Rs	10.0	1.0

Ratio Analysis for UPL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x 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 0.5x during FY24, from 2.7x 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 -7.6% during FY24, from 16.4% 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 3.4% during FY24, from 16.2% 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 2.4% during FY24, from 8.6% 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	1.5
Debtors’ Days	Days	12	14
Interest coverage	x	2.7	0.5
Debt to equity ratio	x	0.9	1.1
Return on assets	%	8.6	2.4
Return on equity	%	16.4	-7.6
Return on capital employed	%	16.2	3.4

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

UPL Share Price Performance

Over the last one year, UPL share price has moved down from Rs 603.5 to Rs 527.1, registering a loss of Rs 76.4 or around 12.7%.

Overall, the S&P BSE SENSEX is up 18.6% over the year.

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