SADBHAV ENGINEERING 2023-24 Annual Report Analysis

Wed, 16 Oct

SADBHAV ENGINEERING 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.

SADBHAV ENGINEERING Income Statement Analysis

• Operating income during the year rose 8.2% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 13.1% in FY24 as against 18.0% in FY23.
• Depreciation charges decreased by 2.7% and finance costs decreased by 15.2% YoY, respectively.
• Other income declined by 63.9% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 39.4% in FY23 to 40.6% in FY24.

SADBHAV ENGINEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	17,769	19,230	8.2%
Other income	Rs m	3,996	1,442	-63.9%
Total Revenues	Rs m	21,765	20,671	-5.0%
Gross profit	Rs m	-3,207	-2,517	NA
Depreciation	Rs m	1,310	1,274	-2.7%
Interest	Rs m	6,612	5,606	-15.2%
Profit before tax	Rs m	-7,133	-7,955	NA
Tax	Rs m	-140	-156	NA
Profit after tax	Rs m	-6,994	-7,799	NA
Gross profit margin	%	-18.0	-13.1
Effective tax rate	%	2.0	2.0
Net profit margin	%	-39.4	-40.6

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

SADBHAV ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 46 billion as compared to Rs 54 billion in FY23, thereby witnessing an decrease of -14.7%.
• Long-term debt down at Rs 10 billion as compared to Rs 18 billion during FY23, a fall of 46.4%.
• Current assets fell 15% and stood at Rs 44 billion, while fixed assets fell 49% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 69 billion as against Rs 97 billion during FY23, thereby witnessing a fall of 28%.

SADBHAV ENGINEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,752	-1,254	NA
Current Liabilities	Rs m	54,293	46,299	-14.7
Long-term Debt	Rs m	17,825	9,560	-46.4
Total Liabilities	Rs m	96,680	69,481	-28.1
Current assets	Rs m	51,125	43,689	-14.5
Fixed Assets	Rs m	23,345	11,953	-48.8
Total Assets	Rs m	96,680	69,481	-28.1

SADBHAV ENGINEERING Cash Flow Statement Analysis

• SADBHAV ENGINEERING's cash flow from operating activities (CFO) during FY24 stood at Rs 12 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 718 million, an improvement of 125.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -13 billion, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -574 million from the Rs -581 million net cash flows seen during FY23.

SADBHAV ENGINEERING 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	17,802	11,537	-35.2%
Cash Flow from Investing Activities	Rs m	318	718	125.5%
Cash Flow from Financing Activities	Rs m	-18,702	-12,828	-
Net Cash Flow	Rs m	-581	-574	-

Current Valuations for SADBHAV ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -45.5, an decline from the EPS of Rs -40.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 35.8, stands at -0.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -4.9 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at -0.6 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	103.6	112.1
TTM Earnings per share	Rs	-40.8	-45.5
Diluted earnings per share	Rs	-40.8	-45.5
Price to Cash Flow	x	-0.3	-0.6
TTM P/E ratio	x	-0.2	-0.8
Price / Book Value ratio	x	2.3	-3.0
Market Cap	Rs m	4,077	3,708
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SADBHAV ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY24, from 0.9x 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 -0.4x during FY24, from -0.1x 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 621.9% during FY24, from -399.1% 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 -28.3% during FY24, from -2.7% 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 declined and down at -3.2% during FY24, from -0.4% 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	0.9	0.9
Debtors’ Days	Days	792	523
Interest coverage	x	-0.1	-0.4
Debt to equity ratio	x	10.2	-7.6
Return on assets	%	-0.4	-3.2
Return on equity	%	-399.1	621.9
Return on capital employed	%	-2.7	-28.3

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

SADBHAV ENGINEERING Share Price Performance

Over the last one year, SADBHAV ENGINEERING share price has moved up from Rs 17.8 to Rs 35.8, registering a gain of Rs 18.1 or around 101.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,350.4 (down 0.0%). Over the last one year it has moved up from 48,111.6 to 72,350.4, a gain of 24,239 points (up 50.4%).

Overall, the S&P BSE SENSEX is up 23.2% over the year.

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