STYLAM INDUSTRIES 2023-24 Annual Report Analysis

Tue, 24 Sep

STYLAM INDUSTRIES 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.

STYLAM INDUSTRIES Income Statement Analysis

• Operating income during the year fell 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.1% in FY24 as against 16.3% in FY23.
• Depreciation charges increased by 11.4% and finance costs decreased by 69.5% YoY, respectively.
• Other income grew by 296.9% YoY.
• Net profit for the year grew by 33.8% YoY.
• Net profit margins during the year grew from 10.1% in FY23 to 14.1% in FY24.

STYLAM INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,521	9,141	-4.0%
Other income	Rs m	14	57	296.9%
Total Revenues	Rs m	9,536	9,198	-3.5%
Gross profit	Rs m	1,548	1,834	18.4%
Depreciation	Rs m	200	223	11.4%
Interest	Rs m	82	25	-69.5%
Profit before tax	Rs m	1,281	1,643	28.3%
Tax	Rs m	321	359	11.8%
Profit after tax	Rs m	960	1,284	33.8%
Gross profit margin	%	16.3	20.1
Effective tax rate	%	25.1	21.8
Net profit margin	%	10.1	14.1

Dear Reader: If You Invest in Midcap Stocks, this is for You

STYLAM INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 599 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -44.5%.
• Current assets rose 16% and stood at Rs 4 billion, while fixed assets rose 8% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 13%.

STYLAM INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,121	5,363	30.1
Current Liabilities	Rs m	1,080	599	-44.5
Long-term Debt	Rs m	6	0	-100.0
Total Liabilities	Rs m	5,381	6,073	12.9
Current assets	Rs m	3,492	4,039	15.7
Fixed Assets	Rs m	1,889	2,035	7.7
Total Assets	Rs m	5,381	6,073	12.9

STYLAM INDUSTRIES Cash Flow Statement Analysis

• STYLAM INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 70.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -209 million, an improvement of 69.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -468 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 453 million from the Rs 181 million net cash flows seen during FY23.

STYLAM INDUSTRIES 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	662	1,129	70.5%
Cash Flow from Investing Activities	Rs m	-123	-209	-
Cash Flow from Financing Activities	Rs m	-358	-468	-
Net Cash Flow	Rs m	181	453	150.6%

Current Valuations for STYLAM INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 75.8, an improvement from the EPS of Rs 56.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,978.8, stands at 26.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.3 times, while the price to sales ratio stands at 3.7 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	561.7	539.3
TTM Earnings per share	Rs	56.6	75.8
Diluted earnings per share	Rs	56.6	75.8
Price to Cash Flow	x	14.1	16.6
TTM P/E ratio	x	17.1	26.0
Price / Book Value ratio	x	4.2	4.7
Market Cap	Rs m	17,195	24,996
Dividends per share (Unadj.)	Rs	0.0	2.5

Ratio Analysis for STYLAM INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 6.7x during FY24, from 3.2x 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 66.8x during FY24, from 16.6x 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 24.0% during FY24, from 23.3% 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 declined and down at 31.1% during FY24, from 33.0% 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 21.6% during FY24, from 19.4% 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	3.2	6.7
Debtors’ Days	Days	482	647
Interest coverage	x	16.6	66.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.4	21.6
Return on equity	%	23.3	24.0
Return on capital employed	%	33.0	31.1

To see how STYLAM INDUSTRIES has performed over the last 5 years, please visit here.

STYLAM INDUSTRIES Share Price Performance

Over the last one year, STYLAM INDUSTRIES share price has moved up from Rs 1,690.5 to Rs 1,978.8, registering a gain of Rs 288.3 or around 17.1%.

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for STYLAM INDUSTRIES and quarterly results for STYLAM INDUSTRIES)