SAHYADRI INDUSTRIES 2023-24 Annual Report Analysis

Wed, 24 Jul

SAHYADRI 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.

SAHYADRI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 6.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.5% in FY24 as against 13.6% in FY23.
• Depreciation charges increased by 0.8% and finance costs increased by 25.0% YoY, respectively.
• Other income grew by 12.7% YoY.
• Net profit for the year declined by 28.9% YoY.
• Net profit margins during the year declined from 6.2% in FY23 to 4.2% in FY24.

SAHYADRI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,938	6,343	6.8%
Other income	Rs m	37	42	12.7%
Total Revenues	Rs m	5,975	6,384	6.9%
Gross profit	Rs m	808	664	-17.7%
Depreciation	Rs m	238	240	0.8%
Interest	Rs m	90	113	25.0%
Profit before tax	Rs m	516	353	-31.6%
Tax	Rs m	145	89	-38.3%
Profit after tax	Rs m	371	264	-28.9%
Gross profit margin	%	13.6	10.5
Effective tax rate	%	28.1	25.3
Net profit margin	%	6.2	4.2

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SAHYADRI 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 -6.0%.
• Long-term debt down at Rs 328 million as compared to Rs 433 million during FY23, a fall of 24.2%.
• Current assets fell 3% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 1%.

SAHYADRI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,353	3,600	7.4
Current Liabilities	Rs m	1,699	1,596	-6.0
Long-term Debt	Rs m	433	328	-24.2
Total Liabilities	Rs m	5,566	5,598	0.6
Current assets	Rs m	3,208	3,102	-3.3
Fixed Assets	Rs m	2,358	2,496	5.9
Total Assets	Rs m	5,566	5,598	0.6

SAHYADRI INDUSTRIES Cash Flow Statement Analysis

• SAHYADRI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 578 million, an improvement of 245.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -340 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -216 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 22 million from the Rs 12 million net cash flows seen during FY23.

SAHYADRI 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	167	578	245.9%
Cash Flow from Investing Activities	Rs m	-445	-340	-
Cash Flow from Financing Activities	Rs m	291	-216	-
Net Cash Flow	Rs m	12	22	75.8%

Current Valuations for SAHYADRI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.1, an decline from the EPS of Rs 33.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 397.7, stands at 16.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.5 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	542.3	579.2
TTM Earnings per share	Rs	33.9	24.1
Diluted earnings per share	Rs	33.9	24.1
Price to Cash Flow	x	5.3	8.5
TTM P/E ratio	x	8.7	16.5
Price / Book Value ratio	x	1.4	1.2
Market Cap	Rs m	4,821	4,291
Dividends per share (Unadj.)	Rs	4.0	1.0

Ratio Analysis for SAHYADRI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.9x 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 4.1x during FY24, from 6.7x 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 7.3% during FY24, from 11.1% 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 11.9% during FY24, from 16.0% 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 6.7% during FY24, from 8.3% 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	1.9	1.9
Debtors’ Days	Days	2	2
Interest coverage	x	6.7	4.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.3	6.7
Return on equity	%	11.1	7.3
Return on capital employed	%	16.0	11.9

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

SAHYADRI INDUSTRIES Share Price Performance

Over the last one year, SAHYADRI INDUSTRIES share price has moved down from Rs 417.1 to Rs 397.7, registering a loss of Rs 19.4 or around 4.7%.

Overall, the S&P BSE SENSEX is up 20.8% over the year.

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