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SAHAJ SOLAR LTD. 2023-24 Annual Report Analysis

Mon, 29 Jul

SAHAJ SOLAR LTD. 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.

SAHAJ SOLAR LTD. Income Statement Analysis

• Operating income during the year rose 8.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 115.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.1% in FY24 as against 6.1% in FY23.
• Depreciation charges decreased by 6.4% and finance costs increased by 111.7% YoY, respectively.
• Other income grew by 22.1% YoY.
• Net profit for the year grew by 106.2% YoY.
• Net profit margins during the year grew from 3.5% in FY23 to 6.6% in FY24.

SAHAJ SOLAR LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,854	2,012	8.5%
Other income	Rs m	4	5	22.1%
Total Revenues	Rs m	1,858	2,017	8.6%
Gross profit	Rs m	113	244	115.2%
Depreciation	Rs m	12	12	-6.4%
Interest	Rs m	20	42	111.7%
Profit before tax	Rs m	86	196	128.8%
Tax	Rs m	21	62	199.5%
Profit after tax	Rs m	65	134	106.2%
Gross profit margin	%	6.1	12.1
Effective tax rate	%	24.2	31.7
Net profit margin	%	3.5	6.6

For Investors: Our Big Prediction

SAHAJ SOLAR LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 699 million in FY23, thereby witnessing an increase of 59.6%.
• Long-term debt down at Rs 25 million as compared to Rs 37 million during FY23, a fall of 31.9%.
• Current assets rose 71% and stood at Rs 1 billion, while fixed assets rose 1% and stood at Rs 97 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 906 million during FY23, thereby witnessing a growth of 64%.

SAHAJ SOLAR LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	164	330	101.1
Current Liabilities	Rs m	699	1,116	59.6
Long-term Debt	Rs m	37	25	-31.9
Total Liabilities	Rs m	906	1,486	63.9
Current assets	Rs m	811	1,389	71.3
Fixed Assets	Rs m	95	97	1.3
Total Assets	Rs m	906	1,486	63.9

SAHAJ SOLAR LTD. Cash Flow Statement Analysis

• SAHAJ SOLAR LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -348 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 443 million, an improvement of 700% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 93 million from the Rs 14 million net cash flows seen during FY23.

SAHAJ SOLAR LTD. 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	96	-348	-
Cash Flow from Investing Activities	Rs m	-9	-3	-
Cash Flow from Financing Activities	Rs m	-74	443	-
Net Cash Flow	Rs m	14	93	545.4%

Current Valuations for SAHAJ SOLAR LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an improvement from the EPS of Rs 8.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 481.1, stands at 39.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 16.0 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 36.4 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	236.7	249.3
TTM Earnings per share	Rs	8.3	16.6
Diluted earnings per share	Rs	5.9	12.2
Price to Cash Flow	x	0.0	36.4
TTM P/E ratio	x	0.0	39.5
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	5,285
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SAHAJ SOLAR LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY24, from 1.2x 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 5.7x during FY24, from 5.3x 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 40.5% during FY24, from 39.5% 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 66.8% during FY24, from 52.4% 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 11.8% during FY24, from 9.3% 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	1.2	1.2
Debtors’ Days	Days	1,056	1,607
Interest coverage	x	5.3	5.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	9.3	11.8
Return on equity	%	39.5	40.5
Return on capital employed	%	52.4	66.8

To see how SAHAJ SOLAR LTD. has performed over the last 5 years, please visit here.

SAHAJ SOLAR LTD. Share Price Performance

Over the last one year, SAHAJ SOLAR LTD. share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,420.5 (up 2.8%). Over the last one year it has moved up from 43,473.8 to 75,420.5, a gain of 31,947 points (up 73.5%).

Overall, the NIFTY 50 is up 0.0% over the year.

(To know more, check out historical annual results for SAHAJ SOLAR LTD. and quarterly results for SAHAJ SOLAR LTD.)