SAFARI INDUSTRIES 2023-24 Annual Report Analysis

Wed, 17 Jul

SAFARI 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.

SAFARI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 27.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 41.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.9% in FY24 as against 16.2% in FY23.
• Depreciation charges increased by 55.5% and finance costs increased by 19.2% YoY, respectively.
• Other income grew by 46.7% YoY.
• Net profit for the year grew by 40.5% YoY.
• Net profit margins during the year grew from 10.3% in FY23 to 11.3% in FY24.

SAFARI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,120	15,504	27.9%
Other income	Rs m	95	139	46.7%
Total Revenues	Rs m	12,214	15,643	28.1%
Gross profit	Rs m	1,969	2,775	41.0%
Depreciation	Rs m	333	518	55.5%
Interest	Rs m	80	95	19.2%
Profit before tax	Rs m	1,650	2,301	39.4%
Tax	Rs m	400	543	35.9%
Profit after tax	Rs m	1,251	1,758	40.5%
Gross profit margin	%	16.2	17.9
Effective tax rate	%	24.2	23.6
Net profit margin	%	10.3	11.3

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SAFARI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -5.2%.
• Long-term debt down at Rs 148 million as compared to Rs 215 million during FY23, a fall of 31.0%.
• Current assets rose 51% and stood at Rs 8 billion, while fixed assets rose 57% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 53%.

SAFARI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,210	8,185	94.4
Current Liabilities	Rs m	2,438	2,312	-5.2
Long-term Debt	Rs m	215	148	-31.0
Total Liabilities	Rs m	7,443	11,379	52.9
Current assets	Rs m	5,447	8,235	51.2
Fixed Assets	Rs m	1,997	3,144	57.5
Total Assets	Rs m	7,443	11,379	52.9

SAFARI INDUSTRIES Cash Flow Statement Analysis

• SAFARI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 328.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 396.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 737% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 361 million from the Rs 7 million net cash flows seen during FY23.

SAFARI 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	506	2,169	328.4%
Cash Flow from Investing Activities	Rs m	-695	-3,453	-
Cash Flow from Financing Activities	Rs m	196	1,645	737.4%
Net Cash Flow	Rs m	7	361	4,842.5%

Current Valuations for SAFARI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 36.0, an decline from the EPS of Rs 52.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,148.4, stands at 59.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.8 times, while the price to sales ratio stands at 6.8 times.
• The company's price to cash flow (P/CF) ratio stood at 35.6 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	511.2	317.9
TTM Earnings per share	Rs	52.8	36.0
Diluted earnings per share	Rs	25.7	36.1
Price to Cash Flow	x	31.5	35.6
TTM P/E ratio	x	39.9	59.6
Price / Book Value ratio	x	8.3	9.9
Market Cap	Rs m	34,942	81,112
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for SAFARI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.6x during FY24, from 2.2x 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 25.2x during FY24, from 21.7x 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 declined and down at 21.5% during FY24, from 29.7% 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 28.8% during FY24, from 39.1% 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 16.3% during FY24, from 17.9% 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	2.2	3.6
Debtors’ Days	Days	5	4
Interest coverage	x	21.7	25.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	17.9	16.3
Return on equity	%	29.7	21.5
Return on capital employed	%	39.1	28.8

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

SAFARI INDUSTRIES Share Price Performance

Over the last one year, SAFARI INDUSTRIES share price has moved up from Rs 1,486.0 to Rs 2,148.4, registering a gain of Rs 662.4 or around 44.6%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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