SUNDARAM FINANCE HOLDINGS 2022-23 Annual Report Analysis

Fri, 31 Mar

SUNDARAM FINANCE HOLDINGS 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.

SUNDARAM FINANCE HOLDINGS Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 96.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.0% in FY23 as against 27.4% in FY22.
• Depreciation charges decreased by 63.3% and finance costs decreased by 48.4% YoY, respectively.
• Other income declined by 14.8% YoY.
• Net profit for the year grew by 82.3% YoY.
• Net profit margins during the year grew from 20.6% in FY22 to 34.8% in FY23.

SUNDARAM FINANCE HOLDINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	839	904	7.8%
Other income	Rs m	41	35	-14.8%
Total Revenues	Rs m	880	940	6.7%
Gross profit	Rs m	230	452	96.8%
Depreciation	Rs m	44	16	-63.3%
Interest	Rs m	8	4	-48.4%
Profit before tax	Rs m	219	467	113.6%
Tax	Rs m	46	152	231.8%
Profit after tax	Rs m	173	315	82.3%
Gross profit margin	%	27.4	50.0
Effective tax rate	%	20.9	32.5
Net profit margin	%	20.6	34.8

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SUNDARAM FINANCE HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 217 million as compared to Rs 66 million in FY22, thereby witnessing an increase of 227.3%.
• Current assets rose 108% and stood at Rs 5 billion, while fixed assets rose 10% and stood at Rs 32 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 36 billion as against Rs 31 billion during FY22, thereby witnessing a growth of 17%.

SUNDARAM FINANCE HOLDINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	30,020	35,699	18.9
Current Liabilities	Rs m	66	217	227.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	30,955	36,345	17.4
Current assets	Rs m	2,307	4,792	107.7
Fixed Assets	Rs m	28,648	31,553	10.1
Total Assets	Rs m	30,955	36,345	17.4

SUNDARAM FINANCE HOLDINGS Cash Flow Statement Analysis

• SUNDARAM FINANCE HOLDINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 235.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -252 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -729 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 21 million from the Rs 32 million net cash flows seen during FY22.

SUNDARAM FINANCE HOLDINGS 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	299	1,002	235.8%
Cash Flow from Investing Activities	Rs m	-3,452	-252	-
Cash Flow from Financing Activities	Rs m	3,185	-729	-
Net Cash Flow	Rs m	32	21	-34.6%

Current Valuations for SUNDARAM FINANCE HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an improvement from the EPS of Rs 0.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 0.0, stands at 0.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.0 times, while the price to sales ratio stands at 0.0 times.
• The company's price to cash flow (P/CF) ratio stood at 57.1 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	3.8	4.1
TTM Earnings per share	Rs	0.8	1.4
Diluted earnings per share	Rs	0.8	1.4
Price to Cash Flow	x	0.0	57.1
TTM P/E ratio	x	0.0	0.0
Price / Book Value ratio	x	0.6	0.5
Market Cap	Rs m	17,001	18,912
Dividends per share (Unadj.)	Rs	2.8	4.0

Ratio Analysis for SUNDARAM FINANCE HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 22.0x during FY23, from 34.7x 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 improved and stood at 108.3x during FY23, from 26.9x 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 improved and stood at 0.9% during FY23, from 0.6% 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 improved and stood at 1.3% during FY23, from 0.8% 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 improved and stood at 0.9% during FY23, from 0.6% 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	34.7	22.0
Debtors’ Days	Days	220	279
Interest coverage	x	26.9	108.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.6	0.9
Return on equity	%	0.6	0.9
Return on capital employed	%	0.8	1.3

To see how SUNDARAM FINANCE HOLDINGS has performed over the last 5 years, please visit here.

SUNDARAM FINANCE HOLDINGS Share Price Performance

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(To know more, check out historical annual results for SUNDARAM FINANCE HOLDINGS and quarterly results for SUNDARAM FINANCE HOLDINGS)