SOMANY CERAMICS 2022-23 Annual Report Analysis

Wed, 16 Aug

SOMANY CERAMICS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SOMANY CERAMICS Income Statement Analysis

• Operating income during the year rose 18.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 11.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.4% in FY23 as against 9.8% in FY22.
• Depreciation charges increased by 6.1% and finance costs increased by 36.2% YoY, respectively.
• Other income grew by 27.2% YoY.
• Net profit for the year declined by 28.4% YoY.
• Net profit margins during the year declined from 4.5% in FY22 to 2.7% in FY23.

SOMANY CERAMICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,945	24,785	18.3%
Other income	Rs m	137	174	27.2%
Total Revenues	Rs m	21,081	24,959	18.4%
Gross profit	Rs m	2,063	1,837	-11.0%
Depreciation	Rs m	640	679	6.1%
Interest	Rs m	296	404	36.2%
Profit before tax	Rs m	1,264	929	-26.5%
Tax	Rs m	329	259	-21.3%
Profit after tax	Rs m	934	669	-28.4%
Gross profit margin	%	9.8	7.4
Effective tax rate	%	26.1	27.9
Net profit margin	%	4.5	2.7

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SOMANY CERAMICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 3.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY22, a growth of 6.0%.
• Current assets rose 1% and stood at Rs 10 billion, while fixed assets rose 10% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 5%.

SOMANY CERAMICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,263	7,844	8.0
Current Liabilities	Rs m	8,559	8,863	3.6
Long-term Debt	Rs m	1,746	1,851	6.0
Total Liabilities	Rs m	19,686	20,752	5.4
Current assets	Rs m	9,664	9,719	0.6
Fixed Assets	Rs m	10,022	11,033	10.1
Total Assets	Rs m	19,686	20,752	5.4

SOMANY CERAMICS Cash Flow Statement Analysis

• SOMANY CERAMICS 's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 15.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -909 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -213 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 523 million from the Rs -488 million net cash flows seen during FY22.

SOMANY CERAMICS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	1,426	1,645	15.4%
Cash Flow from Investing Activities	Rs m	-2,553	-909	-
Cash Flow from Financing Activities	Rs m	639	-213	-
Net Cash Flow	Rs m	-488	523	-

Current Valuations for SOMANY CERAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.8, an decline from the EPS of Rs 22.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 672.8, stands at 47.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	493.2	583.6
TTM Earnings per share	Rs	22.0	15.8
Diluted earnings per share	Rs	22.0	15.8
Price to Cash Flow	x	17.5	18.5
TTM P/E ratio	x	29.4	47.5
Price / Book Value ratio	x	4.0	3.2
Market Cap	Rs m	28,828	24,958
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for SOMANY CERAMICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.1x during FY22. 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 deteriorated and stood at 3.3x during FY23, from 5.3x during FY22. 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 8.5% during FY23, from 12.9% during FY23. 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 13.7% during FY23, from 17.3% during FY22. 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 5.2% during FY23, from 6.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.1	1.1
Debtors’ Days	Days	413	395
Interest coverage	x	5.3	3.3
Debt to equity ratio	x	0.2	0.2
Return on assets	%	6.3	5.2
Return on equity	%	12.9	8.5
Return on capital employed	%	17.3	13.7

To see how SOMANY CERAMICS has performed over the last 5 years, please visit here.

SOMANY CERAMICS Share Price Performance

Over the last one year, SOMANY CERAMICS share price has moved up from Rs 645.3 to Rs 672.8, registering a gain of Rs 27.6 or around 4.3%.

Overall, the S&P BSE SENSEX is up 10.2% over the year.

(To know more, check out historical annual results for SOMANY CERAMICS and quarterly results for SOMANY CERAMICS )