SAT INDUSTRIES 2023-24 Annual Report Analysis

Tue, 25 Jun

SAT INDUSTRIES 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.

SAT INDUSTRIES Income Statement Analysis

• Operating income during the year rose 7.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.7% in FY24 as against 12.3% in FY23.
• Depreciation charges increased by 27.7% and finance costs increased by 42.3% YoY, respectively.
• Other income grew by 1687.4% YoY.
• Net profit for the year grew by 508.6% YoY.
• Net profit margins during the year grew from 9.7% in FY23 to 54.8% in FY24.

SAT INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,662	5,006	7.4%
Other income	Rs m	155	2,778	1,687.4%
Total Revenues	Rs m	4,818	7,784	61.6%
Gross profit	Rs m	574	738	28.5%
Depreciation	Rs m	72	92	27.7%
Interest	Rs m	75	107	42.3%
Profit before tax	Rs m	583	3,318	469.1%
Tax	Rs m	132	575	334.6%
Profit after tax	Rs m	451	2,742	508.6%
Gross profit margin	%	12.3	14.7
Effective tax rate	%	22.7	17.3
Net profit margin	%	9.7	54.8

Dear Reader: If You Invest in Midcap Stocks, this is for You

SAT INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 1.1%.
• Long-term debt down at Rs 102 million as compared to Rs 283 million during FY23, a fall of 64.0%.
• Current assets rose 100% and stood at Rs 7 billion, while fixed assets rose 41% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 9 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 82%.

SAT INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,614	6,483	148.1
Current Liabilities	Rs m	1,512	1,528	1.1
Long-term Debt	Rs m	283	102	-64.0
Total Liabilities	Rs m	4,903	8,933	82.2
Current assets	Rs m	3,445	6,878	99.7
Fixed Assets	Rs m	1,458	2,055	40.9
Total Assets	Rs m	4,903	8,933	82.2

SAT INDUSTRIES Cash Flow Statement Analysis

• SAT INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion, an improvement of 3,432.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 788 million, an improvement of 37% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 436 million from the Rs 182 million net cash flows seen during FY23.

SAT INDUSTRIES 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	-68	-2,417	-
Cash Flow from Investing Activities	Rs m	-325	2,065	-
Cash Flow from Financing Activities	Rs m	576	788	36.9%
Net Cash Flow	Rs m	182	436	139.3%

Current Valuations for SAT INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.2, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 94.5, stands at 3.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 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	41.2	44.3
TTM Earnings per share	Rs	4.0	24.2
Diluted earnings per share	Rs	4.0	24.2
Price to Cash Flow	x	13.0	4.0
TTM P/E ratio	x	15.1	3.9
Price / Book Value ratio	x	2.4	1.7
Market Cap	Rs m	6,319	11,331
Dividends per share (Unadj.)	Rs	0.2	0.3

Ratio Analysis for SAT INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.5x during FY24, from 2.3x 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 32.0x during FY24, from 8.8x 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 42.3% during FY24, from 17.2% 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 52.0% during FY24, from 22.7% 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 31.9% during FY24, from 10.7% 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	2.3	4.5
Debtors’ Days	Days	838	1,079
Interest coverage	x	8.8	32.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	10.7	31.9
Return on equity	%	17.2	42.3
Return on capital employed	%	22.7	52.0

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

SAT INDUSTRIES Share Price Performance

Over the last one year, SAT INDUSTRIES share price has moved up from Rs 81.2 to Rs 94.5, registering a gain of Rs 13.3 or around 16.4%.

Overall, the S&P BSE SENSEX is up 21.8% over the year.

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