SAREGAMA 2023-24 Annual Report Analysis

Wed, 7 Aug

SAREGAMA 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.

SAREGAMA Income Statement Analysis

• Operating income during the year rose 9.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 30.1% in FY24 as against 30.0% in FY23.
• Depreciation charges increased by 73.8% and finance costs decreased by 43.3% YoY, respectively.
• Other income grew by 28.1% YoY.
• Net profit for the year grew by 6.8% YoY.
• Net profit margins during the year declined from 25.1% in FY23 to 24.6% in FY24.

SAREGAMA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,366	8,030	9.0%
Other income	Rs m	536	687	28.1%
Total Revenues	Rs m	7,903	8,717	10.3%
Gross profit	Rs m	2,210	2,415	9.3%
Depreciation	Rs m	208	362	73.8%
Interest	Rs m	57	32	-43.3%
Profit before tax	Rs m	2,481	2,708	9.2%
Tax	Rs m	630	732	16.2%
Profit after tax	Rs m	1,851	1,976	6.8%
Gross profit margin	%	30.0	30.1
Effective tax rate	%	25.4	27.0
Net profit margin	%	25.1	24.6

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SAREGAMA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -3.6%.
• Current assets fell 2% and stood at Rs 12 billion, while fixed assets rose 80% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 19%.

SAREGAMA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	13,390	14,575	8.8
Current Liabilities	Rs m	3,080	2,969	-3.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	17,041	20,338	19.3
Current assets	Rs m	12,520	12,221	-2.4
Fixed Assets	Rs m	4,521	8,117	79.6
Total Assets	Rs m	17,041	20,338	19.3

SAREGAMA Cash Flow Statement Analysis

• SAREGAMA's cash flow from operating activities (CFO) during FY24 stood at Rs 932 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 166 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -849 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 402 million from the Rs -1 billion net cash flows seen during FY23.

SAREGAMA 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	934	932	-0.2%
Cash Flow from Investing Activities	Rs m	-1,481	166	-
Cash Flow from Financing Activities	Rs m	-752	-849	-
Net Cash Flow	Rs m	-1,360	402	-

Current Valuations for SAREGAMA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an improvement from the EPS of Rs 9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 502.6, stands at 50.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.6 times, while the price to sales ratio stands at 12.1 times.
• The company's price to cash flow (P/CF) ratio stood at 32.7 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	38.2	41.6
TTM Earnings per share	Rs	9.6	10.2
Diluted earnings per share	Rs	9.6	10.2
Price to Cash Flow	x	31.0	32.7
TTM P/E ratio	x	34.5	50.6
Price / Book Value ratio	x	5.9	5.2
Market Cap	Rs m	78,864	76,473
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for SAREGAMA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.1x during FY24, from 4.1x 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 84.5x during FY24, from 44.4x 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 declined and down at 13.6% during FY24, from 13.8% 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 18.8% during FY24, from 19.0% 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 declined and down at 9.9% during FY24, from 11.2% 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	4.1	4.1
Debtors’ Days	Days	733	722
Interest coverage	x	44.4	84.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.2	9.9
Return on equity	%	13.8	13.6
Return on capital employed	%	19.0	18.8

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

SAREGAMA Share Price Performance

Over the last one year, SAREGAMA share price has moved up from Rs 397.5 to Rs 502.6, registering a gain of Rs 105.2 or around 26.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 18,349.8 (up 1.4%). Over the last one year it has moved up from 13,950.8 to 18,349.8, a gain of 4,399 points (up 31.5%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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