UTI ASSET MANAGEMENT COMPANY 2023-24 Annual Report Analysis

Tue, 2 Jul

UTI ASSET MANAGEMENT COMPANY 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.

UTI ASSET MANAGEMENT COMPANY Income Statement Analysis

• Operating income during the year rose 37.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 59.5% in FY24 as against 48.3% in FY23.
• Depreciation charges increased by 5.8% and finance costs increased by 18.0% YoY, respectively.
• Other income declined by 70.0% YoY.
• Net profit for the year grew by 82.4% YoY.
• Net profit margins during the year grew from 34.7% in FY23 to 46.2% in FY24.

UTI ASSET MANAGEMENT COMPANY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,669	17,370	37.1%
Other income	Rs m	232	70	-70.0%
Total Revenues	Rs m	12,901	17,439	35.2%
Gross profit	Rs m	6,119	10,334	68.9%
Depreciation	Rs m	399	423	5.8%
Interest	Rs m	96	113	18.0%
Profit before tax	Rs m	5,856	9,868	68.5%
Tax	Rs m	1,459	1,848	26.6%
Profit after tax	Rs m	4,397	8,020	82.4%
Gross profit margin	%	48.3	59.5
Effective tax rate	%	24.9	18.7
Net profit margin	%	34.7	46.2

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UTI ASSET MANAGEMENT COMPANY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 3.9%.
• Current assets fell 12% and stood at Rs 5 billion, while fixed assets rose 32% and stood at Rs 51 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 55 billion as against Rs 43 billion during FY23, thereby witnessing a growth of 27%.

UTI ASSET MANAGEMENT COMPANY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	37,900	43,135	13.8
Current Liabilities	Rs m	2,282	2,371	3.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	43,482	55,295	27.2
Current assets	Rs m	5,178	4,554	-12.0
Fixed Assets	Rs m	38,304	50,741	32.5
Total Assets	Rs m	43,482	55,295	27.2

UTI ASSET MANAGEMENT COMPANY Cash Flow Statement Analysis

• UTI ASSET MANAGEMENT COMPANY's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 57.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -586 million from the Rs 360 million net cash flows seen during FY23.

UTI ASSET MANAGEMENT COMPANY 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	3,954	3,251	-17.8%
Cash Flow from Investing Activities	Rs m	-925	-1,458	-
Cash Flow from Financing Activities	Rs m	-2,669	-2,379	-
Net Cash Flow	Rs m	360	-586	-

Current Valuations for UTI ASSET MANAGEMENT COMPANY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.0, an improvement from the EPS of Rs 34.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,034.0, stands at 16.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 7.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	99.8	136.5
TTM Earnings per share	Rs	34.6	63.0
Diluted earnings per share	Rs	34.5	63.0
Price to Cash Flow	x	17.0	12.1
TTM P/E ratio	x	18.6	16.4
Price / Book Value ratio	x	2.7	2.4
Market Cap	Rs m	101,765	101,986
Dividends per share (Unadj.)	Rs	22.0	47.0

Ratio Analysis for UTI ASSET MANAGEMENT COMPANY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 2.3x 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 88.6x during FY24, from 62.3x 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 18.6% during FY24, from 11.6% 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 23.1% during FY24, from 15.7% 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 14.7% during FY24, from 10.3% 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	2.3	1.9
Debtors’ Days	Days	3	2
Interest coverage	x	62.3	88.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.3	14.7
Return on equity	%	11.6	18.6
Return on capital employed	%	15.7	23.1

To see how UTI ASSET MANAGEMENT COMPANY has performed over the last 5 years, please visit here.

UTI ASSET MANAGEMENT COMPANY Share Price Performance

Over the last one year, UTI ASSET MANAGEMENT COMPANY share price has moved up from Rs 784.8 to Rs 1,034.0, registering a gain of Rs 249.2 or around 31.8%.

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for UTI ASSET MANAGEMENT COMPANY and quarterly results for UTI ASSET MANAGEMENT COMPANY)