UNIVERSAL CABLES 2023-24 Annual Report Analysis

Wed, 10 Jul

UNIVERSAL CABLES 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.

UNIVERSAL CABLES Income Statement Analysis

• Operating income during the year fell 8.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 7.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.7% in FY24 as against 11.5% in FY23.
• Depreciation charges increased by 5.7% and finance costs decreased by 6.1% YoY, respectively.
• Other income grew by 33.9% YoY.
• Net profit for the year declined by 8.4% YoY.
• Net profit margins during the year declined from 5.4% in FY23 to 5.4% in FY24.

UNIVERSAL CABLES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,020	20,207	-8.2%
Other income	Rs m	176	236	33.9%
Total Revenues	Rs m	22,196	20,443	-7.9%
Gross profit	Rs m	2,538	2,358	-7.1%
Depreciation	Rs m	225	238	5.7%
Interest	Rs m	974	915	-6.1%
Profit before tax	Rs m	1,515	1,441	-4.9%
Tax	Rs m	334	359	7.6%
Profit after tax	Rs m	1,182	1,082	-8.4%
Gross profit margin	%	11.5	11.7
Effective tax rate	%	22.0	24.9
Net profit margin	%	5.4	5.4

Don't Miss: Key Information for Long-term Investors

UNIVERSAL CABLES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 27.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY23, a fall of 18.5%.
• Current assets rose 14% and stood at Rs 14 billion, while fixed assets rose 22% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 18%.

UNIVERSAL CABLES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	14,966	17,750	18.6
Current Liabilities	Rs m	7,819	9,951	27.3
Long-term Debt	Rs m	2,398	1,954	-18.5
Total Liabilities	Rs m	28,103	33,196	18.1
Current assets	Rs m	12,649	14,414	14.0
Fixed Assets	Rs m	15,454	18,782	21.5
Total Assets	Rs m	28,103	33,196	18.1

UNIVERSAL CABLES Cash Flow Statement Analysis

• UNIVERSAL CABLES's cash flow from operating activities (CFO) during FY24 stood at Rs 331 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -499 million, an improvement of 227.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 181 million, an improvement of 114% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 13 million from the Rs 5 million net cash flows seen during FY23.

UNIVERSAL CABLES 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	1,430	331	-76.9%
Cash Flow from Investing Activities	Rs m	-152	-499	-
Cash Flow from Financing Activities	Rs m	-1,273	181	-
Net Cash Flow	Rs m	5	13	181.0%

Current Valuations for UNIVERSAL CABLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.2, an decline from the EPS of Rs 34.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 794.5, stands at 80.7 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 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 12.0 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	634.6	582.3
TTM Earnings per share	Rs	34.0	31.2
Diluted earnings per share	Rs	34.1	31.2
Price to Cash Flow	x	8.9	12.0
TTM P/E ratio	x	25.1	80.7
Price / Book Value ratio	x	0.6	0.9
Market Cap	Rs m	8,862	15,821
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for UNIVERSAL CABLES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 1.6x 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 2.6x during FY24, from 2.6x 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 6.1% during FY24, from 7.9% 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 12.0% during FY24, from 14.3% 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 6.0% during FY24, from 7.7% 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	1.6	1.4
Debtors’ Days	Days	1,475	1,945
Interest coverage	x	2.6	2.6
Debt to equity ratio	x	0.2	0.1
Return on assets	%	7.7	6.0
Return on equity	%	7.9	6.1
Return on capital employed	%	14.3	12.0

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

UNIVERSAL CABLES Share Price Performance

Over the last one year, UNIVERSAL CABLES share price has moved up from Rs 393.1 to Rs 794.5, registering a gain of Rs 401.4 or around 102.1%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 8,135.8 (up 0.5%). Over the last one year it has moved up from 4,013.9 to 8,135.8, a gain of 4,122 points (up 102.7%).

Overall, the S&P BSE SENSEX is up 22.3% over the year.

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