SADHANA NITRO 2023-24 Annual Report Analysis

Tue, 24 Sep

SADHANA NITRO 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.

SADHANA NITRO Income Statement Analysis

• Operating income during the year rose 32.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 93.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.6% in FY24 as against 14.8% in FY23.
• Depreciation charges increased by 96.1% and finance costs increased by 77.1% YoY, respectively.
• Other income grew by 121.0% YoY.
• Net profit for the year grew by 28.4% YoY.
• Net profit margins during the year declined from 2.2% in FY23 to 2.1% in FY24.

SADHANA NITRO Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,433	1,900	32.6%
Other income	Rs m	18	40	121.0%
Total Revenues	Rs m	1,451	1,940	33.7%
Gross profit	Rs m	212	411	93.5%
Depreciation	Rs m	76	149	96.1%
Interest	Rs m	98	173	77.1%
Profit before tax	Rs m	57	128	127.0%
Tax	Rs m	25	87	253.7%
Profit after tax	Rs m	32	41	28.4%
Gross profit margin	%	14.8	21.6
Effective tax rate	%	43.8	68.2
Net profit margin	%	2.2	2.1

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SADHANA NITRO Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 23.6%.
• Long-term debt stood at Rs 1 billion as compared to Rs 598 million during FY23, a growth of 115.7%.
• Current assets rose 18% and stood at Rs 3 billion, while fixed assets rose 32% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 25%.

SADHANA NITRO Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,261	2,266	0.2
Current Liabilities	Rs m	1,277	1,578	23.6
Long-term Debt	Rs m	598	1,289	115.7
Total Liabilities	Rs m	4,261	5,319	24.8
Current assets	Rs m	2,237	2,646	18.3
Fixed Assets	Rs m	2,024	2,673	32.1
Total Assets	Rs m	4,261	5,319	24.8

SADHANA NITRO Cash Flow Statement Analysis

• SADHANA NITRO's cash flow from operating activities (CFO) during FY24 stood at Rs -27 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -649 million, an improvement of 22.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 415 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -261 million from the Rs -190 million net cash flows seen during FY23.

SADHANA NITRO 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	-378	-27	-
Cash Flow from Investing Activities	Rs m	-528	-649	-
Cash Flow from Financing Activities	Rs m	716	415	-42.1%
Net Cash Flow	Rs m	-190	-261	-

Current Valuations for SADHANA NITRO

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.2, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 59.2, stands at 420.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 7.7 times.
• The company's price to cash flow (P/CF) ratio stood at 136.1 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	7.1	7.7
TTM Earnings per share	Rs	0.2	0.2
Diluted earnings per share	Rs	0.1	0.1
Price to Cash Flow	x	349.8	136.1
TTM P/E ratio	x	1,189.8	420.5
Price / Book Value ratio	x	12.4	11.4
Market Cap	Rs m	27,941	25,845
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for SADHANA NITRO

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 1.8x 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 1.7x during FY24, from 1.6x 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 1.8% during FY24, from 1.4% 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 8.5% during FY24, from 5.4% 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 4.0% during FY24, from 3.0% 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	1.8	1.7
Debtors’ Days	Days	1,669	2,424
Interest coverage	x	1.6	1.7
Debt to equity ratio	x	0.3	0.6
Return on assets	%	3.0	4.0
Return on equity	%	1.4	1.8
Return on capital employed	%	5.4	8.5

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

SADHANA NITRO Share Price Performance

Over the last one year, SADHANA NITRO share price has moved down from Rs 82.3 to Rs 59.2, registering a loss of Rs 23.1 or around 28.1%.

Overall, the S&P BSE SENSEX is up 27.2% over the year.

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