SAH POLYMERS 2022-23 Annual Report Analysis

Fri, 23 Jun

SAH POLYMERS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SAH POLYMERS Income Statement Analysis

• Operating income during the year rose 18.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.6% in FY23 as against 8.9% in FY22.
• Depreciation charges increased by 39.3% and finance costs increased by 76.6% YoY, respectively.
• Other income grew by 151.3% YoY.
• Net profit for the year declined by 14.0% YoY.
• Net profit margins during the year declined from 5.4% in FY22 to 3.9% in FY23.

SAH POLYMERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	805	954	18.5%
Other income	Rs m	7	18	151.3%
Total Revenues	Rs m	812	972	19.7%
Gross profit	Rs m	72	72	0.3%
Depreciation	Rs m	10	14	39.3%
Interest	Rs m	14	25	76.6%
Profit before tax	Rs m	55	51	-6.7%
Tax	Rs m	11	14	22.0%
Profit after tax	Rs m	44	38	-14.0%
Gross profit margin	%	8.9	7.6
Effective tax rate	%	20.3	26.6
Net profit margin	%	5.4	3.9

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SAH POLYMERS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 284 million as compared to Rs 391 million in FY22, thereby witnessing an decrease of -27.3%.
• Long-term debt stood at Rs 85 million as compared to Rs 15 million during FY22, a growth of 482.4%.
• Current assets rose 86% and stood at Rs 765 million, while fixed assets rose 81% and stood at Rs 497 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 687 million during FY22, thereby witnessing a growth of 84%.

SAH POLYMERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	240	846	252.0
Current Liabilities	Rs m	391	284	-27.3
Long-term Debt	Rs m	15	85	482.4
Total Liabilities	Rs m	687	1,262	83.7
Current assets	Rs m	412	765	85.8
Fixed Assets	Rs m	275	497	80.6
Total Assets	Rs m	687	1,262	83.7

SAH POLYMERS Cash Flow Statement Analysis

• SAH POLYMERS's cash flow from operating activities (CFO) during FY23 stood at Rs -170 million, an improvement of 2,044.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -240 million, an improvement of 122.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 456 million, an improvement of 310% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 46 million from the Rs -5 million net cash flows seen during FY22.

SAH POLYMERS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-8	-170	-
Cash Flow from Investing Activities	Rs m	-108	-240	-
Cash Flow from Financing Activities	Rs m	111	456	310.5%
Net Cash Flow	Rs m	-5	46	-

Current Valuations for SAH POLYMERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.5, an decline from the EPS of Rs 2.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 92.7, stands at 63.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 38.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	51.6	37.0
TTM Earnings per share	Rs	2.8	1.5
Diluted earnings per share	Rs	1.7	1.5
Price to Cash Flow	x	0.0	38.1
TTM P/E ratio	x	0.0	63.6
Price / Book Value ratio	x	0.0	2.3
Market Cap	Rs m	0	1,966
Dividends per share (Unadj.)	Rs	0.0	0.5

Ratio Analysis for SAH POLYMERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 1.1x during FY22. 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 3.0x during FY23, from 4.9x during FY22. 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 4.4% during FY23, from 18.2% during FY23. 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 8.2% during FY23, from 27.1% during FY22. 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 5.0% during FY23, from 8.4% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.1	2.7
Debtors’ Days	Days	628	618
Interest coverage	x	4.9	3.0
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.4	5.0
Return on equity	%	18.2	4.4
Return on capital employed	%	27.1	8.2

To see how SAH POLYMERS has performed over the last 5 years, please visit here.

SAH POLYMERS Share Price Performance

Over the last one year, SAH POLYMERS share price has moved up from Rs 0.0 to Rs 92.7, registering a gain of Rs 92.7 or around 0.0%.

Overall, the S&P BSE SENSEX is up 20.2% over the year.

(To know more, check out historical annual results for SAH POLYMERS and quarterly results for SAH POLYMERS)