SG MART 2023-24 Annual Report Analysis

Thu, 19 Sep

SG MART 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.

SG MART Income Statement Analysis

• Operating income during the year rose 171880.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.3% in FY24 as against 48.1% in FY23.
• Depreciation charges increased by 0.0% increased by 0.0% YoY, respectively.
• Other income grew by 3001.0% YoY.
• Net profit for the year grew by 30370.0% YoY.
• Net profit margins during the year declined from 12.8% in FY23 to 2.3% in FY24.

SG MART Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16	26,829	171,880.8%
Other income	Rs m	10	316	3,001.0%
Total Revenues	Rs m	26	27,145	105,114.3%
Gross profit	Rs m	-8	618	NA
Depreciation	Rs m	0	5	0.0%
Interest	Rs m	0	116	0.0%
Profit before tax	Rs m	3	813	30,014.8%
Tax	Rs m	1	204	29,000.0%
Profit after tax	Rs m	2	609	30,370.0%
Gross profit margin	%	-48.1	2.3
Effective tax rate	%	25.9	25.1
Net profit margin	%	12.8	2.3

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SG MART Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 0 million in FY23, thereby witnessing an increase of 3993400.0%.
• Current assets rose 11,695% and stood at Rs 14 billion, while fixed assets rose 112,220% and stood at Rs 562 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 122 million during FY23, thereby witnessing a growth of 12,108%.

SG MART Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	122	9,966	8,089.1
Current Liabilities	Rs m	0	3,994	3,993,400.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	122	14,870	12,108.1
Current assets	Rs m	121	14,308	11,695.5
Fixed Assets	Rs m	1	562	112,220.0
Total Assets	Rs m	122	14,870	12,108.1

SG MART Cash Flow Statement Analysis

• SG MART's cash flow from operating activities (CFO) during FY24 stood at Rs -139 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -11 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 12 billion, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 101 million net cash flows seen during FY23.

SG MART 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	44	-139	-
Cash Flow from Investing Activities	Rs m	57	-10,591	-
Cash Flow from Financing Activities	Rs m	0	11,840	0.0%
Net Cash Flow	Rs m	101	1,110	998.3%

Current Valuations for SG MART

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.5, an improvement from the EPS of Rs 2.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 431.0, stands at 56.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 988.5 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	15.6	240.5
TTM Earnings per share	Rs	2.0	5.5
Diluted earnings per share	Rs	0.0	5.4
Price to Cash Flow	x	1,449.4	988.5
TTM P/E ratio	x	1,486.6	56.2
Price / Book Value ratio	x	3.8	61.0
Market Cap	Rs m	464	607,450
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SG MART

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.6x during FY24, from 1,213.0x 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 8.0x during FY24, from 0.0x 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 6.1% during FY24, from 1.6% 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 9.3% during FY24, from 2.2% 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 4.9% during FY24, from 1.6% 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	1,213.0	3.6
Debtors’ Days	Days	0	1
Interest coverage	x	0.0	8.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.6	4.9
Return on equity	%	1.6	6.1
Return on capital employed	%	2.2	9.3

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

SG MART Share Price Performance

Over the last one year, SG MART share price has moved up from Rs 250.7 to Rs 431.0, registering a gain of Rs 180.3 or around 71.9%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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