ZF COMMERCIAL 2023-24 Annual Report Analysis

Wed, 3 Jul

ZF COMMERCIAL 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.

ZF COMMERCIAL Income Statement Analysis

• Operating income during the year rose 10.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.8% in FY24 as against 13.7% in FY23.
• Depreciation charges increased by 4.8% and finance costs decreased by 11.6% YoY, respectively.
• Other income grew by 41.6% YoY.
• Net profit for the year grew by 27.9% YoY.
• Net profit margins during the year grew from 9.2% in FY23 to 10.7% in FY24.

ZF COMMERCIAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	34,442	38,156	10.8%
Other income	Rs m	670	948	41.6%
Total Revenues	Rs m	35,112	39,105	11.4%
Gross profit	Rs m	4,704	5,664	20.4%
Depreciation	Rs m	1,048	1,098	4.8%
Interest	Rs m	57	50	-11.6%
Profit before tax	Rs m	4,269	5,464	28.0%
Tax	Rs m	1,092	1,400	28.2%
Profit after tax	Rs m	3,177	4,064	27.9%
Gross profit margin	%	13.7	14.8
Effective tax rate	%	25.6	25.6
Net profit margin	%	9.2	10.7

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ZF COMMERCIAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -4.8%.
• Current assets rose 11% and stood at Rs 25 billion, while fixed assets rose 15% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 34 billion as against Rs 30 billion during FY23, thereby witnessing a growth of 12%.

ZF COMMERCIAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,091	27,903	15.8
Current Liabilities	Rs m	5,358	5,100	-4.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	30,003	33,526	11.7
Current assets	Rs m	22,389	24,748	10.5
Fixed Assets	Rs m	7,615	8,778	15.3
Total Assets	Rs m	30,003	33,526	11.7

ZF COMMERCIAL Cash Flow Statement Analysis

• ZF COMMERCIAL's cash flow from operating activities (CFO) during FY24 stood at Rs 2 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 -341 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 280 million from the Rs -28 million net cash flows seen during FY23.

ZF COMMERCIAL 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	2,985	1,929	-35.4%
Cash Flow from Investing Activities	Rs m	-2,710	-1,309	-
Cash Flow from Financing Activities	Rs m	-311	-341	-
Net Cash Flow	Rs m	-28	280	-

Current Valuations for ZF COMMERCIAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 214.3, an improvement from the EPS of Rs 167.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 16,051.0, stands at 74.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 8.0 times.
• The company's price to cash flow (P/CF) ratio stood at 50.7 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	1,815.6	2,011.4
TTM Earnings per share	Rs	167.5	214.3
Diluted earnings per share	Rs	167.5	214.3
Price to Cash Flow	x	46.6	50.7
TTM P/E ratio	x	62.0	74.9
Price / Book Value ratio	x	7.0	9.4
Market Cap	Rs m	169,011	261,698
Dividends per share (Unadj.)	Rs	13.0	17.0

Ratio Analysis for ZF COMMERCIAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.9x during FY24, from 4.2x 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 110.1x during FY24, from 76.4x 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 14.6% during FY24, from 13.2% 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 19.8% during FY24, from 18.0% 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 12.3% during FY24, from 10.8% 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	4.2	4.9
Debtors’ Days	Days	803	896
Interest coverage	x	76.4	110.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.8	12.3
Return on equity	%	13.2	14.6
Return on capital employed	%	18.0	19.8

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

ZF COMMERCIAL Share Price Performance

Over the last one year, ZF COMMERCIAL share price has moved up from Rs 12,284.6 to Rs 16,051.0, registering a gain of Rs 3,766.4 or around 30.7%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

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