SHREE RENUKA SUGARS 2023-24 Annual Report Analysis

Mon, 9 Sep

SHREE RENUKA SUGARS 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.

SHREE RENUKA SUGARS Income Statement Analysis

• Operating income during the year rose 25.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 17.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY24 as against 6.2% in FY23.
• Depreciation charges increased by 12.0% and finance costs increased by 55.2% YoY, respectively.
• Other income declined by 32.1% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 2.2% in FY23 to 5.5% in FY24.

SHREE RENUKA SUGARS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	90,207	113,190	25.5%
Other income	Rs m	858	583	-32.1%
Total Revenues	Rs m	91,065	113,773	24.9%
Gross profit	Rs m	5,637	6,641	17.8%
Depreciation	Rs m	2,377	2,662	12.0%
Interest	Rs m	5,914	9,180	55.2%
Profit before tax	Rs m	-1,796	-4,618	NA
Tax	Rs m	171	1,654	867.0%
Profit after tax	Rs m	-1,967	-6,272	NA
Gross profit margin	%	6.2	5.9
Effective tax rate	%	-9.5	-35.8
Net profit margin	%	-2.2	-5.5

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SHREE RENUKA SUGARS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 80 billion as compared to Rs 52 billion in FY23, thereby witnessing an increase of 53.7%.
• Long-term debt stood at Rs 32 billion as compared to Rs 31 billion during FY23, a growth of 5.8%.
• Current assets rose 78% and stood at Rs 54 billion, while fixed assets rose 4% and stood at Rs 47 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 102 billion as against Rs 76 billion during FY23, thereby witnessing a growth of 34%.

SHREE RENUKA SUGARS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-8,812	-14,379	NA
Current Liabilities	Rs m	51,988	79,882	53.7
Long-term Debt	Rs m	30,581	32,357	5.8
Total Liabilities	Rs m	76,042	101,633	33.7
Current assets	Rs m	30,558	54,254	77.5
Fixed Assets	Rs m	45,484	47,379	4.2
Total Assets	Rs m	76,042	101,633	33.7

SHREE RENUKA SUGARS Cash Flow Statement Analysis

• SHREE RENUKA SUGARS's cash flow from operating activities (CFO) during FY24 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 7.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 1 billion net cash flows seen during FY23.

SHREE RENUKA SUGARS 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	9,264	9,134	-1.4%
Cash Flow from Investing Activities	Rs m	-3,544	-3,802	-
Cash Flow from Financing Activities	Rs m	-3,316	-6,692	-
Net Cash Flow	Rs m	1,448	-1,292	-

Current Valuations for SHREE RENUKA SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.9, an decline from the EPS of Rs -0.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 46.9, stands at -15.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -6.9 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at -28.5 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	42.4	53.2
TTM Earnings per share	Rs	-0.9	-2.9
Diluted earnings per share	Rs	-0.9	-2.9
Price to Cash Flow	x	229.1	-28.5
TTM P/E ratio	x	-47.7	-15.2
Price / Book Value ratio	x	-12.6	-7.1
Market Cap	Rs m	111,001	102,753
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHREE RENUKA SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.7x during FY24, from 0.6x 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 deteriorated and stood at 0.5x during FY24, from 0.7x 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 43.6% during FY24, from 22.3% 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 25.4% during FY24, from 18.9% 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 2.9% during FY24, from 5.2% 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	0.6	0.7
Debtors’ Days	Days	8	20
Interest coverage	x	0.7	0.5
Debt to equity ratio	x	-3.5	-2.3
Return on assets	%	5.2	2.9
Return on equity	%	22.3	43.6
Return on capital employed	%	18.9	25.4

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

SHREE RENUKA SUGARS Share Price Performance

Over the last one year, SHREE RENUKA SUGARS share price has moved down from Rs 52.0 to Rs 46.9, registering a loss of Rs 5.1 or around 9.8%.

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for SHREE RENUKA SUGARS and quarterly results for SHREE RENUKA SUGARS)