CERA SANITARY 2023-24 Annual Report Analysis

Tue, 18 Jun

CERA SANITARY 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.

CERA SANITARY Income Statement Analysis

• Operating income during the year rose 3.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.3% in FY24 as against 16.3% in FY23.
• Depreciation charges increased by 12.1% and finance costs decreased by 3.8% YoY, respectively.
• Other income grew by 158.7% YoY.
• Net profit for the year grew by 14.3% YoY.
• Net profit margins during the year grew from 11.7% in FY23 to 12.8% in FY24.

CERA SANITARY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,105	18,794	3.8%
Other income	Rs m	284	734	158.7%
Total Revenues	Rs m	18,389	19,528	6.2%
Gross profit	Rs m	2,952	2,878	-2.5%
Depreciation	Rs m	326	365	12.1%
Interest	Rs m	60	58	-3.8%
Profit before tax	Rs m	2,849	3,189	11.9%
Tax	Rs m	738	775	5.0%
Profit after tax	Rs m	2,111	2,413	14.3%
Gross profit margin	%	16.3	15.3
Effective tax rate	%	25.9	24.3
Net profit margin	%	11.7	12.8

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CERA SANITARY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -3.3%.
• Long-term debt down at Rs 26 million as compared to Rs 42 million during FY23, a fall of 38.0%.
• Current assets rose 12% and stood at Rs 14 billion, while fixed assets rose 5% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 17 billion during FY23, thereby witnessing a growth of 10%.

CERA SANITARY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,726	13,458	14.8
Current Liabilities	Rs m	3,935	3,804	-3.3
Long-term Debt	Rs m	42	26	-38.0
Total Liabilities	Rs m	16,766	18,455	10.1
Current assets	Rs m	12,739	14,233	11.7
Fixed Assets	Rs m	4,028	4,222	4.8
Total Assets	Rs m	16,766	18,455	10.1

CERA SANITARY Cash Flow Statement Analysis

• CERA SANITARY's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 45.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 35.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -835 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 97 million from the Rs -26 million net cash flows seen during FY23.

CERA SANITARY 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	1,624	2,361	45.4%
Cash Flow from Investing Activities	Rs m	-1,054	-1,428	-
Cash Flow from Financing Activities	Rs m	-596	-835	-
Net Cash Flow	Rs m	-26	97	-

Current Valuations for CERA SANITARY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 185.5, an improvement from the EPS of Rs 162.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 7,794.8, stands at 42.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 5.4 times.
• The company's price to cash flow (P/CF) ratio stood at 36.9 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	1,391.6	1,444.6
TTM Earnings per share	Rs	162.2	185.5
Diluted earnings per share	Rs	162.3	185.5
Price to Cash Flow	x	34.1	36.9
TTM P/E ratio	x	39.3	42.0
Price / Book Value ratio	x	5.7	7.6
Market Cap	Rs m	67,030	102,558
Dividends per share (Unadj.)	Rs	50.0	60.0

Ratio Analysis for CERA SANITARY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x 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 55.8x during FY24, from 48.1x 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 17.9% during FY24, from 18.0% 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 24.1% during FY24, from 24.7% 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 13.4% during FY24, from 12.9% 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	3.7
Debtors’ Days	Days	381	393
Interest coverage	x	48.1	55.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	13.4
Return on equity	%	18.0	17.9
Return on capital employed	%	24.7	24.1

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

CERA SANITARY Share Price Performance

Over the last one year, CERA SANITARY share price has moved down from Rs 7,841.1 to Rs 7,794.8, registering a loss of Rs 46.3 or around 0.6%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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