SAIL 2023-24 Annual Report Analysis

Mon, 9 Sep

SAIL 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.

SAIL Income Statement Analysis

• Operating income during the year rose 0.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.2% in FY24 as against 8.6% in FY23.
• Depreciation charges increased by 6.3% and finance costs increased by 21.4% YoY, respectively.
• Other income grew by 12.3% YoY.
• Net profit for the year grew by 40.9% YoY.
• Net profit margins during the year grew from 2.1% in FY23 to 2.9% in FY24.

SAIL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,044,477	1,053,783	0.9%
Other income	Rs m	9,504	10,670	12.3%
Total Revenues	Rs m	1,053,981	1,064,453	1.0%
Gross profit	Rs m	89,431	107,471	20.2%
Depreciation	Rs m	49,635	52,784	6.3%
Interest	Rs m	20,375	24,739	21.4%
Profit before tax	Rs m	28,924	40,618	40.4%
Tax	Rs m	7,159	9,951	39.0%
Profit after tax	Rs m	21,765	30,667	40.9%
Gross profit margin	%	8.6	10.2
Effective tax rate	%	24.8	24.5
Net profit margin	%	2.1	2.9

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SAIL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 539 billion as compared to Rs 495 billion in FY23, thereby witnessing an increase of 8.9%.
• Long-term debt stood at Rs 148 billion as compared to Rs 108 billion during FY23, a growth of 36.4%.
• Current assets rose 27% and stood at Rs 485 billion, while fixed assets rose 0% and stood at Rs 926 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1,411 billion as against Rs 1,306 billion during FY23, thereby witnessing a growth of 8%.

SAIL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	547,467	571,012	4.3
Current Liabilities	Rs m	494,573	538,739	8.9
Long-term Debt	Rs m	108,497	148,035	36.4
Total Liabilities	Rs m	1,306,041	1,411,181	8.1
Current assets	Rs m	380,844	485,321	27.4
Fixed Assets	Rs m	924,905	925,709	0.1
Total Assets	Rs m	1,306,041	1,411,181	8.1

SAIL Cash Flow Statement Analysis

• SAIL's cash flow from operating activities (CFO) during FY24 stood at Rs 29 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -43 billion, an improvement of 26.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 14 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 123 million from the Rs -745 million net cash flows seen during FY23.

SAIL 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	-52,902	29,109	-
Cash Flow from Investing Activities	Rs m	-33,710	-42,605	-
Cash Flow from Financing Activities	Rs m	85,867	13,620	-84.1%
Net Cash Flow	Rs m	-745	123	-

Current Valuations for SAIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.4, an improvement from the EPS of Rs 5.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 127.1, stands at 21.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.7 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	252.9	255.1
TTM Earnings per share	Rs	5.3	7.4
Diluted earnings per share	Rs	5.3	7.4
Price to Cash Flow	x	4.8	5.7
TTM P/E ratio	x	22.4	21.4
Price / Book Value ratio	x	0.7	0.8
Market Cap	Rs m	363,280	476,043
Dividends per share (Unadj.)	Rs	1.5	2.0

Ratio Analysis for SAIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY24, from 0.8x 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 2.6x during FY24, from 2.4x 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 5.4% during FY24, from 4.0% 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 9.1% during FY24, from 7.5% 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 3.9% during FY24, from 3.2% 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	0.8	0.9
Debtors’ Days	Days	2	3
Interest coverage	x	2.4	2.6
Debt to equity ratio	x	0.2	0.3
Return on assets	%	3.2	3.9
Return on equity	%	4.0	5.4
Return on capital employed	%	7.5	9.1

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

SAIL Share Price Performance

Over the last one year, SAIL share price has moved up from Rs 98.9 to Rs 127.1, registering a gain of Rs 28.2 or around 28.5%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,889.0 (down 1.4%). Over the last one year it has moved up from 23,312.5 to 30,889.0, a gain of 7,576 points (up 32.5%).

Overall, the S&P BSE SENSEX is up 23.3% over the year.

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