SEAMEC 2023-24 Annual Report Analysis

Wed, 17 Jul

SEAMEC 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.

SEAMEC Income Statement Analysis

• Operating income during the year rose 66.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 91.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.3% in FY24 as against 29.0% in FY23.
• Depreciation charges increased by 20.4% and finance costs increased by 136.5% YoY, respectively.
• Other income grew by 44.4% YoY.
• Net profit for the year grew by 259.5% YoY.
• Net profit margins during the year grew from 7.7% in FY23 to 16.5% in FY24.

SEAMEC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,372	7,293	66.8%
Other income	Rs m	200	289	44.4%
Total Revenues	Rs m	4,572	7,581	65.8%
Gross profit	Rs m	1,268	2,430	91.6%
Depreciation	Rs m	1,120	1,348	20.4%
Interest	Rs m	72	170	136.5%
Profit before tax	Rs m	276	1,200	334.8%
Tax	Rs m	-60	-6	NA
Profit after tax	Rs m	336	1,207	259.5%
Gross profit margin	%	29.0	33.3
Effective tax rate	%	-21.6	-0.5
Net profit margin	%	7.7	16.5

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SEAMEC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 35.4%.
• Long-term debt stood at Rs 2 billion as compared to Rs 474 million during FY23, a growth of 283.3%.
• Current assets rose 44% and stood at Rs 5 billion, while fixed assets rose 17% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 32%.

SEAMEC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,903	9,114	15.3
Current Liabilities	Rs m	2,069	2,801	35.4
Long-term Debt	Rs m	474	1,815	283.3
Total Liabilities	Rs m	10,642	14,055	32.1
Current assets	Rs m	3,137	4,516	44.0
Fixed Assets	Rs m	7,505	8,784	17.0
Total Assets	Rs m	10,642	14,055	32.1

SEAMEC Cash Flow Statement Analysis

• SEAMEC's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 181.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 6,275.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 439% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -248 million from the Rs 70 million net cash flows seen during FY23.

SEAMEC 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	533	1,500	181.5%
Cash Flow from Investing Activities	Rs m	-50	-3,176	-
Cash Flow from Financing Activities	Rs m	-418	1,416	-
Net Cash Flow	Rs m	70	-248	-

Current Valuations for SEAMEC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 47.4, an improvement from the EPS of Rs 13.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,524.7, stands at 32.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 5.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.1 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	171.9	286.8
TTM Earnings per share	Rs	13.2	47.4
Diluted earnings per share	Rs	13.2	47.5
Price to Cash Flow	x	10.4	9.1
TTM P/E ratio	x	45.2	32.1
Price / Book Value ratio	x	3.2	2.5
Market Cap	Rs m	25,112	23,134
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for SEAMEC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.6x during FY24, from 1.5x 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 8.1x during FY24, from 4.8x 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 13.2% during FY24, from 4.2% 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 12.5% during FY24, from 4.2% 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 9.8% during FY24, from 3.8% 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	1.5	1.6
Debtors’ Days	Days	884	1,139
Interest coverage	x	4.8	8.1
Debt to equity ratio	x	0.1	0.2
Return on assets	%	3.8	9.8
Return on equity	%	4.2	13.2
Return on capital employed	%	4.2	12.5

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

SEAMEC Share Price Performance

Over the last one year, SEAMEC share price has moved up from Rs 751.6 to Rs 1,524.7, registering a gain of Rs 773.1 or around 102.9%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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