SAMVARDHANA MOTHERSON 2023-24 Annual Report Analysis

Mon, 5 Aug

SAMVARDHANA MOTHERSON 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.

SAMVARDHANA MOTHERSON Income Statement Analysis

• Operating income during the year fell 88.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 81.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.6% in FY24 as against 7.7% in FY23.
• Depreciation charges decreased by 90.0% and finance costs decreased by 67.2% YoY, respectively.
• Other income grew by 115.3% YoY.
• Net profit for the year declined by 43.5% YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 10.4% in FY24.

SAMVARDHANA MOTHERSON Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	787,007	90,460	-88.5%
Other income	Rs m	2,570	5,532	115.3%
Total Revenues	Rs m	789,577	95,992	-87.8%
Gross profit	Rs m	60,645	11,384	-81.2%
Depreciation	Rs m	31,358	3,130	-90.0%
Interest	Rs m	7,809	2,564	-67.2%
Profit before tax	Rs m	24,048	11,222	-53.3%
Tax	Rs m	7,352	1,783	-75.7%
Profit after tax	Rs m	16,696	9,439	-43.5%
Gross profit margin	%	7.7	12.6
Effective tax rate	%	30.6	15.9
Net profit margin	%	2.1	10.4

Don't Miss: Key Information for Long-term Investors

SAMVARDHANA MOTHERSON Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 26 billion as compared to Rs 275 billion in FY23, thereby witnessing an decrease of -90.7%.
• Long-term debt down at Rs 36 billion as compared to Rs 66 billion during FY23, a fall of 45.5%.
• Current assets fell 86% and stood at Rs 37 billion, while fixed assets rose 3% and stood at Rs 346 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 384 billion as against Rs 605 billion during FY23, thereby witnessing a fall of 37%.

SAMVARDHANA MOTHERSON Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	224,515	319,286	42.2
Current Liabilities	Rs m	275,154	25,676	-90.7
Long-term Debt	Rs m	66,183	36,077	-45.5
Total Liabilities	Rs m	604,873	383,601	-36.6
Current assets	Rs m	267,792	37,397	-86.0
Fixed Assets	Rs m	337,081	346,204	2.7
Total Assets	Rs m	604,873	383,601	-36.6

SAMVARDHANA MOTHERSON Cash Flow Statement Analysis

• SAMVARDHANA MOTHERSON's cash flow from operating activities (CFO) during FY24 stood at Rs 11 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 9 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -21 billion, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -668 million from the Rs -3 billion net cash flows seen during FY23.

SAMVARDHANA MOTHERSON 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	46,430	11,106	-76.1%
Cash Flow from Investing Activities	Rs m	-22,448	8,626	-
Cash Flow from Financing Activities	Rs m	-27,342	-20,507	-
Net Cash Flow	Rs m	-3,395	-668	-

Current Valuations for SAMVARDHANA MOTHERSON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an decline from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 175.7, stands at 42.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.7 times, while the price to sales ratio stands at 13.2 times.
• The company's price to cash flow (P/CF) ratio stood at 52.1 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	116.1	13.3
TTM Earnings per share	Rs	2.5	1.4
Diluted earnings per share	Rs	2.5	1.4
Price to Cash Flow	x	9.5	52.1
TTM P/E ratio	x	26.5	42.8
Price / Book Value ratio	x	2.4	2.1
Market Cap	Rs m	539,765	655,280
Dividends per share (Unadj.)	Rs	0.7	0.8

Ratio Analysis for SAMVARDHANA MOTHERSON

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.0x 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 5.4x during FY24, from 4.1x 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 3.0% during FY24, from 7.4% 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 3.9% during FY24, from 11.0% 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 3.1% during FY24, from 4.1% 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	1.0	1.5
Debtors’ Days	Days	39	63
Interest coverage	x	4.1	5.4
Debt to equity ratio	x	0.3	0.1
Return on assets	%	4.1	3.1
Return on equity	%	7.4	3.0
Return on capital employed	%	11.0	3.9

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

SAMVARDHANA MOTHERSON Share Price Performance

Over the last one year, SAMVARDHANA MOTHERSON share price has moved up from Rs 96.7 to Rs 175.7, registering a gain of Rs 79.0 or around 81.7%.

Overall, the S&P BSE SENSEX is up 18.5% over the year.

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