ZODIAC ENERGY 2023-24 Annual Report Analysis

Tue, 27 Aug

ZODIAC ENERGY 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.

ZODIAC ENERGY Income Statement Analysis

• Operating income during the year rose 59.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 152.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.6% in FY24 as against 5.4% in FY23.
• Depreciation charges increased by 0.9% and finance costs increased by 38.6% YoY, respectively.
• Other income grew by 15.4% YoY.
• Net profit for the year grew by 244.1% YoY.
• Net profit margins during the year grew from 2.3% in FY23 to 5.0% in FY24.

ZODIAC ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,377	2,201	59.9%
Other income	Rs m	8	10	15.4%
Total Revenues	Rs m	1,385	2,210	59.6%
Gross profit	Rs m	75	190	152.8%
Depreciation	Rs m	8	8	0.9%
Interest	Rs m	32	44	38.6%
Profit before tax	Rs m	44	147	236.3%
Tax	Rs m	12	38	215.6%
Profit after tax	Rs m	32	110	244.1%
Gross profit margin	%	5.4	8.6
Effective tax rate	%	27.2	25.5
Net profit margin	%	2.3	5.0

End of Year Sale: Grab our small cap recommendation service at 60% off!

ZODIAC ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 585 million as compared to Rs 481 million in FY23, thereby witnessing an increase of 21.7%.
• Long-term debt down at Rs 64 million as compared to Rs 91 million during FY23, a fall of 29.4%.
• Current assets rose 27% and stood at Rs 1 billion, while fixed assets fell 4% and stood at Rs 149 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 943 million during FY23, thereby witnessing a growth of 22%.

ZODIAC ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	361	471	30.6
Current Liabilities	Rs m	481	585	21.7
Long-term Debt	Rs m	91	64	-29.4
Total Liabilities	Rs m	943	1,152	22.1
Current assets	Rs m	789	1,003	27.2
Fixed Assets	Rs m	155	149	-3.6
Total Assets	Rs m	943	1,152	22.1

ZODIAC ENERGY Cash Flow Statement Analysis

• ZODIAC ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 160 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -50 million, an improvement of 64.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -98 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 11 million from the Rs -12 million net cash flows seen during FY23.

ZODIAC ENERGY 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	-231	160	-
Cash Flow from Investing Activities	Rs m	-31	-50	-
Cash Flow from Financing Activities	Rs m	250	-98	-
Net Cash Flow	Rs m	-12	11	-

Current Valuations for ZODIAC ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.5, an improvement from the EPS of Rs 2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 639.8, stands at 77.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 20.5 times, while the price to sales ratio stands at 4.3 times.
• The company's price to cash flow (P/CF) ratio stood at 32.8 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	94.1	150.4
TTM Earnings per share	Rs	2.2	7.5
Diluted earnings per share	Rs	2.1	7.3
Price to Cash Flow	x	33.9	32.8
TTM P/E ratio	x	42.1	77.6
Price / Book Value ratio	x	5.2	8.2
Market Cap	Rs m	1,862	3,860
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ZODIAC ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 4.3x during FY24, from 2.4x 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 23.3% during FY24, from 8.8% 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 35.8% during FY24, from 16.8% 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 13.4% during FY24, from 6.8% 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	1.6	1.7
Debtors’ Days	Days	1,097	1,197
Interest coverage	x	2.4	4.3
Debt to equity ratio	x	0.3	0.1
Return on assets	%	6.8	13.4
Return on equity	%	8.8	23.3
Return on capital employed	%	16.8	35.8

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

ZODIAC ENERGY Share Price Performance

Over the last one year, ZODIAC ENERGY share price has moved up from Rs 123.7 to Rs 639.8, registering a gain of Rs 516.1 or around 417.2%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 73,668.4 (up 0.3%). Over the last one year it has moved up from 43,991.7 to 73,668.4, a gain of 29,677 points (up 67.5%).

Overall, the S&P BSE SENSEX is up 24.9% over the year.

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