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SANSTAR LTD. 2023-24 Annual Report Analysis

Tue, 30 Jul

SANSTAR 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.

SANSTAR LTD. Income Statement Analysis

• Operating income during the year fell 11.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.2% in FY24 as against 6.0% in FY23.
• Depreciation charges increased by 2.0% and finance costs increased by 9.5% YoY, respectively.
• Other income grew by 213.2% YoY.
• Net profit for the year grew by 59.7% YoY.
• Net profit margins during the year grew from 3.5% in FY23 to 6.3% in FY24.

SANSTAR LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,051	10,673	-11.4%
Other income	Rs m	46	144	213.2%
Total Revenues	Rs m	12,097	10,817	-10.6%
Gross profit	Rs m	724	981	35.5%
Depreciation	Rs m	119	121	2.0%
Interest	Rs m	98	107	9.5%
Profit before tax	Rs m	554	897	62.0%
Tax	Rs m	136	230	69.0%
Profit after tax	Rs m	418	668	59.7%
Gross profit margin	%	6.0	9.2
Effective tax rate	%	24.5	25.6
Net profit margin	%	3.5	6.3

For Investors: Our Big Prediction

SANSTAR LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 74.3%.
• Long-term debt down at Rs 309 million as compared to Rs 343 million during FY23, a fall of 9.8%.
• Current assets rose 79% and stood at Rs 3 billion, while fixed assets rose 13% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 44%.

SANSTAR LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,871	2,538	35.6
Current Liabilities	Rs m	1,257	2,190	74.3
Long-term Debt	Rs m	343	309	-9.8
Total Liabilities	Rs m	3,727	5,355	43.7
Current assets	Rs m	1,738	3,114	79.2
Fixed Assets	Rs m	1,989	2,241	12.7
Total Assets	Rs m	3,727	5,355	43.7

SANSTAR LTD. Cash Flow Statement Analysis

• SANSTAR LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 286 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -369 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 52 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -31 million from the Rs 56 million net cash flows seen during FY23.

SANSTAR 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	-60	286	-
Cash Flow from Investing Activities	Rs m	-714	-369	-
Cash Flow from Financing Activities	Rs m	830	52	-93.7%
Net Cash Flow	Rs m	56	-31	-

Current Valuations for SANSTAR LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.8, an decline from the EPS of Rs 14.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 114.1, stands at 31.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.2 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 26.4 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	429.0	76.0
TTM Earnings per share	Rs	14.9	4.8
Diluted earnings per share	Rs	2.3	3.7
Price to Cash Flow	x	0.0	26.4
TTM P/E ratio	x	0.0	31.2
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	20,801
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SANSTAR LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.4x 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 9.4x during FY24, from 6.6x 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 26.3% during FY24, from 22.3% 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 35.3% during FY24, from 29.4% 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 14.5% during FY24, from 13.8% 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	1.4	1.4
Debtors’ Days	Days	28	40
Interest coverage	x	6.6	9.4
Debt to equity ratio	x	0.2	0.1
Return on assets	%	13.8	14.5
Return on equity	%	22.3	26.3
Return on capital employed	%	29.4	35.3

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

SANSTAR LTD. Share Price Performance

Over the last one year, SANSTAR LTD. share price has moved up from Rs 0.0 to Rs 114.1, registering a gain of Rs 114.1 or around 0.0%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 22,701.1 (up 0.3%). Over the last one year it has moved up from 19,069.2 to 22,701.1, a gain of 3,632 points (up 19.0%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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