ESSAR SHIPPING 2023-24 Annual Report Analysis

Wed, 20 Nov

ESSAR SHIPPING 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.

ESSAR SHIPPING Income Statement Analysis

• Operating income during the year fell 74.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 367.1% in FY24 as against 2789.7% in FY23.
• Depreciation charges decreased by 98.2% and finance costs decreased by 64.3% YoY, respectively.
• Other income declined by 66.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 2720.0% in FY23 to 446.4% in FY24.

ESSAR SHIPPING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	607	158	-74.0%
Other income	Rs m	1,039	344	-66.9%
Total Revenues	Rs m	1,646	501	-69.6%
Gross profit	Rs m	16,925	-579	NA
Depreciation	Rs m	411	7	-98.2%
Interest	Rs m	1,316	470	-64.3%
Profit before tax	Rs m	16,238	-712	NA
Tax	Rs m	-265	-8	NA
Profit after tax	Rs m	16,502	-704	NA
Gross profit margin	%	2,789.7	-367.1
Effective tax rate	%	-1.6	1.2
Net profit margin	%	2,720.0	-446.4

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ESSAR SHIPPING Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 14 billion as compared to Rs 33 billion in FY23, thereby witnessing an decrease of -57.9%.
• Long-term debt stood at Rs 6 billion as compared to Rs 4 billion during FY23, a growth of 56.4%.
• Current assets fell 66% and stood at Rs 3 billion, while fixed assets fell 97% and stood at Rs 32 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 10 billion during FY23, thereby witnessing a fall of 69%.

ESSAR SHIPPING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-27,427	-16,749	NA
Current Liabilities	Rs m	32,720	13,779	-57.9
Long-term Debt	Rs m	3,982	6,227	56.4
Total Liabilities	Rs m	10,465	3,264	-68.8
Current assets	Rs m	9,476	3,232	-65.9
Fixed Assets	Rs m	990	32	-96.8
Total Assets	Rs m	10,465	3,264	-68.8

ESSAR SHIPPING Cash Flow Statement Analysis

• ESSAR SHIPPING's cash flow from operating activities (CFO) during FY24 stood at Rs -700 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 798 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -57 million, an improvement of 99% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 41 million from the Rs 73 million net cash flows seen during FY23.

ESSAR SHIPPING 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	5,136	-700	-
Cash Flow from Investing Activities	Rs m	903	798	-11.7%
Cash Flow from Financing Activities	Rs m	-9,689	-57	-
Net Cash Flow	Rs m	73	41	-43.7%

Current Valuations for ESSAR SHIPPING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -3.4, an decline from the EPS of Rs 79.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 38.0, stands at 1.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.5 times, while the price to sales ratio stands at 49.9 times.
• The company's price to cash flow (P/CF) ratio stood at -7.0 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	2.9	0.8
TTM Earnings per share	Rs	79.7	-3.4
Diluted earnings per share	Rs	79.7	-3.4
Price to Cash Flow	x	0.1	-7.0
TTM P/E ratio	x	0.1	1.5
Price / Book Value ratio	x	-0.1	-0.3
Market Cap	Rs m	1,846	4,856
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ESSAR SHIPPING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY24, from 0.3x 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 deteriorated and stood at -0.5x during FY24, from 13.3x 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 4.2% during FY24, from -60.2% 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 2.3% during FY24, from -74.9% 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 declined and down at -7.2% during FY24, from 170.3% 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	0.3	0.2
Debtors’ Days	Days	8	13
Interest coverage	x	13.3	-0.5
Debt to equity ratio	x	-0.1	-0.4
Return on assets	%	170.3	-7.2
Return on equity	%	-60.2	4.2
Return on capital employed	%	-74.9	2.3

To see how ESSAR SHIPPING has performed over the last 5 years, please visit here.

ESSAR SHIPPING Share Price Performance

Over the last one year, ESSAR SHIPPING share price has moved up from Rs 17.6 to Rs 38.0, registering a gain of Rs 20.4 or around 115.5%.

Overall, the S&P BSE SENSEX is up 18.2% over the year.

(To know more, check out historical annual results for ESSAR SHIPPING and quarterly results for ESSAR SHIPPING)