ZUARI GLOBAL 2023-24 Annual Report Analysis

Fri, 18 Oct

ZUARI GLOBAL 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.

ZUARI GLOBAL Income Statement Analysis

• Operating income during the year fell 12.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 100.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 103.4% in FY24 as against 45.2% in FY23.
• Depreciation charges decreased by 0.2% and finance costs increased by 4.2% YoY, respectively.
• Other income grew by 25.8% YoY.
• Net profit for the year grew by 130.3% YoY.
• Net profit margins during the year grew from 32.4% in FY23 to 85.1% in FY24.

ZUARI GLOBAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,551	8,378	-12.3%
Other income	Rs m	1,823	2,294	25.8%
Total Revenues	Rs m	11,374	10,672	-6.2%
Gross profit	Rs m	4,320	8,667	100.6%
Depreciation	Rs m	274	274	-0.2%
Interest	Rs m	2,732	2,847	4.2%
Profit before tax	Rs m	3,138	7,840	149.9%
Tax	Rs m	43	712	1,563.9%
Profit after tax	Rs m	3,095	7,128	130.3%
Gross profit margin	%	45.2	103.4
Effective tax rate	%	1.4	9.1
Net profit margin	%	32.4	85.1

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ZUARI GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 22 billion as compared to Rs 16 billion in FY23, thereby witnessing an increase of 34.3%.
• Long-term debt down at Rs 13 billion as compared to Rs 18 billion during FY23, a fall of 28.5%.
• Current assets fell 34% and stood at Rs 16 billion, while fixed assets rose 74% and stood at Rs 59 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 75 billion as against Rs 58 billion during FY23, thereby witnessing a growth of 29%.

ZUARI GLOBAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,011	39,189	63.2
Current Liabilities	Rs m	16,010	21,506	34.3
Long-term Debt	Rs m	17,735	12,688	-28.5
Total Liabilities	Rs m	58,067	74,917	29.0
Current assets	Rs m	24,273	16,041	-33.9
Fixed Assets	Rs m	33,793	58,876	74.2
Total Assets	Rs m	58,067	74,917	29.0

ZUARI GLOBAL Cash Flow Statement Analysis

• ZUARI GLOBAL's cash flow from operating activities (CFO) during FY24 stood at Rs 715 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -358 million from the Rs 219 million net cash flows seen during FY23.

ZUARI GLOBAL 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	2,691	715	-73.4%
Cash Flow from Investing Activities	Rs m	-1,586	4,752	-
Cash Flow from Financing Activities	Rs m	-886	-5,826	-
Net Cash Flow	Rs m	219	-358	-

Current Valuations for ZUARI GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 239.3, an improvement from the EPS of Rs 103.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 345.3, stands at 1.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.3 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 0.9 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	320.7	281.3
TTM Earnings per share	Rs	103.9	239.3
Diluted earnings per share	Rs	103.9	239.3
Price to Cash Flow	x	1.0	0.9
TTM P/E ratio	x	-4.4	1.5
Price / Book Value ratio	x	0.2	0.2
Market Cap	Rs m	4,785	6,892
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ZUARI GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY24, from 1.5x 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 3.8x during FY24, from 2.1x 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 18.2% during FY24, from 12.9% 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 improved and stood at 20.6% during FY24, from 14.1% 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 13.3% during FY24, from 10.0% 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	1.5	0.7
Debtors’ Days	Days	306	239
Interest coverage	x	2.1	3.8
Debt to equity ratio	x	0.7	0.3
Return on assets	%	10.0	13.3
Return on equity	%	12.9	18.2
Return on capital employed	%	14.1	20.6

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

ZUARI GLOBAL Share Price Performance

Over the last one year, ZUARI GLOBAL share price has moved up from Rs 152.1 to Rs 345.3, registering a gain of Rs 193.2 or around 127.1%.

Overall, the S&P BSE SENSEX is up 22.4% over the year.

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