SANSERA ENGINEERING 2023-24 Annual Report Analysis

Wed, 11 Sep

SANSERA ENGINEERING 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.

SANSERA ENGINEERING Income Statement Analysis

• Operating income during the year rose 19.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.9% in FY24 as against 16.5% in FY23.
• Depreciation charges increased by 14.9% and finance costs increased by 23.2% YoY, respectively.
• Other income declined by 24.0% YoY.
• Net profit for the year grew by 26.1% YoY.
• Net profit margins during the year grew from 6.3% in FY23 to 6.7% in FY24.

SANSERA ENGINEERING Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,460	28,114	19.8%
Other income	Rs m	101	76	-24.0%
Total Revenues	Rs m	23,561	28,191	19.6%
Gross profit	Rs m	3,873	4,765	23.0%
Depreciation	Rs m	1,301	1,495	14.9%
Interest	Rs m	640	789	23.2%
Profit before tax	Rs m	2,032	2,558	25.9%
Tax	Rs m	549	687	25.2%
Profit after tax	Rs m	1,483	1,870	26.1%
Gross profit margin	%	16.5	16.9
Effective tax rate	%	27.0	26.9
Net profit margin	%	6.3	6.7

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SANSERA ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 32.7%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY23, a fall of 4.3%.
• Current assets rose 21% and stood at Rs 11 billion, while fixed assets rose 32% and stood at Rs 20 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 31 billion as against Rs 25 billion during FY23, thereby witnessing a growth of 28%.

SANSERA ENGINEERING Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,484	13,315	15.9
Current Liabilities	Rs m	8,152	10,822	32.7
Long-term Debt	Rs m	2,630	2,516	-4.3
Total Liabilities	Rs m	24,629	31,419	27.6
Current assets	Rs m	9,144	11,052	20.9
Fixed Assets	Rs m	15,485	20,367	31.5
Total Assets	Rs m	24,629	31,419	27.6

SANSERA ENGINEERING Cash Flow Statement Analysis

• SANSERA ENGINEERING's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 46.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 52.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -80 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -9 million from the Rs 112 million net cash flows seen during FY23.

SANSERA ENGINEERING 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	2,564	3,743	46.0%
Cash Flow from Investing Activities	Rs m	-2,409	-3,683	-
Cash Flow from Financing Activities	Rs m	-62	-80	-
Net Cash Flow	Rs m	112	-9	-

Current Valuations for SANSERA ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 34.9, an improvement from the EPS of Rs 28.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,444.0, stands at 40.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 14.3 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	443.2	524.3
TTM Earnings per share	Rs	28.0	34.9
Diluted earnings per share	Rs	27.5	34.6
Price to Cash Flow	x	14.4	14.3
TTM P/E ratio	x	27.1	40.6
Price / Book Value ratio	x	3.4	3.6
Market Cap	Rs m	39,098	48,263
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for SANSERA ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x during FY24, from 1.1x 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 4.2x during FY24, from 4.2x 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 14.0% during FY24, from 12.9% 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 21.1% during FY24, from 18.9% 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 8.5% during FY24, from 8.6% 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	1.1	1.0
Debtors’ Days	Days	67	60
Interest coverage	x	4.2	4.2
Debt to equity ratio	x	0.2	0.2
Return on assets	%	8.6	8.5
Return on equity	%	12.9	14.0
Return on capital employed	%	18.9	21.1

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

SANSERA ENGINEERING Share Price Performance

Over the last one year, SANSERA ENGINEERING share price has moved up from Rs 947.6 to Rs 1,444.0, registering a gain of Rs 496.4 or around 52.4%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,985.6 (up 0.6%). Over the last one year it has moved up from 47,746.4 to 71,985.6, a gain of 24,239 points (up 50.8%).

Overall, the S&P BSE SENSEX is up 22.2% over the year.

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