PONNI SUGARS ERO. 2023-24 Annual Report Analysis

Tue, 14 May

PONNI SUGARS ERO. 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.

PONNI SUGARS ERO. Income Statement Analysis

• Operating income during the year fell 3.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 12.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY24 as against 8.8% in FY23.
• Depreciation charges increased by 14.9% and finance costs decreased by 62.9% YoY, respectively.
• Other income grew by 3.3% YoY.
• Net profit for the year grew by 22.2% YoY.
• Net profit margins during the year grew from 8.8% in FY23 to 11.1% in FY24.

PONNI SUGARS ERO. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,354	4,213	-3.2%
Other income	Rs m	171	177	3.3%
Total Revenues	Rs m	4,525	4,390	-3.0%
Gross profit	Rs m	385	431	12.0%
Depreciation	Rs m	76	87	14.9%
Interest	Rs m	4	1	-62.9%
Profit before tax	Rs m	476	519	9.0%
Tax	Rs m	93	50	-45.8%
Profit after tax	Rs m	383	469	22.2%
Gross profit margin	%	8.8	10.2
Effective tax rate	%	19.5	9.7
Net profit margin	%	8.8	11.1

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PONNI SUGARS ERO. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 353 million as compared to Rs 481 million in FY23, thereby witnessing an decrease of -26.6%.
• Current assets rose 20% and stood at Rs 2 billion, while fixed assets rose 17% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 18%.

PONNI SUGARS ERO. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,529	5,519	21.9
Current Liabilities	Rs m	481	353	-26.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	5,145	6,047	17.5
Current assets	Rs m	1,444	1,727	19.6
Fixed Assets	Rs m	3,701	4,321	16.7
Total Assets	Rs m	5,145	6,047	17.5

PONNI SUGARS ERO. Cash Flow Statement Analysis

• PONNI SUGARS ERO.'s cash flow from operating activities (CFO) during FY24 stood at Rs 161 million, an improvement of 41.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -120 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -57 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -17 million from the Rs 70 million net cash flows seen during FY23.

PONNI SUGARS ERO. 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	114	161	41.4%
Cash Flow from Investing Activities	Rs m	7	-120	-
Cash Flow from Financing Activities	Rs m	-51	-57	-
Net Cash Flow	Rs m	70	-17	-

Current Valuations for PONNI SUGARS ERO.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 54.5, an improvement from the EPS of Rs 44.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 418.1, stands at 7.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	506.3	489.9
TTM Earnings per share	Rs	44.6	54.5
Diluted earnings per share	Rs	44.6	54.5
Price to Cash Flow	x	7.4	6.6
TTM P/E ratio	x	8.9	7.7
Price / Book Value ratio	x	0.8	0.7
Market Cap	Rs m	3,401	3,693
Dividends per share (Unadj.)	Rs	6.5	7.0

Ratio Analysis for PONNI SUGARS ERO.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.9x during FY24, from 3.0x 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 400.2x during FY24, from 137.1x 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 improved and stood at 8.5% during FY24, from 8.5% 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 9.4% during FY24, from 10.6% 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 7.8% during FY24, from 7.5% 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	3.0	4.9
Debtors’ Days	Days	189	292
Interest coverage	x	137.1	400.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.5	7.8
Return on equity	%	8.5	8.5
Return on capital employed	%	10.6	9.4

To see how PONNI SUGARS ERO. has performed over the last 5 years, please visit here.

PONNI SUGARS ERO. Share Price Performance

Over the last one year, PONNI SUGARS ERO. share price has moved down from Rs 422.5 to Rs 418.1, registering a loss of Rs 4.4 or around 1.0%.

Overall, the S&P BSE SENSEX is up 18.1% over the year.

(To know more, check out historical annual results for PONNI SUGARS ERO. and quarterly results for PONNI SUGARS ERO.)