SANDHAR TECHNOLOGIES 2023-24 Annual Report Analysis

Wed, 11 Sep

SANDHAR TECHNOLOGIES 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.

SANDHAR TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 21.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.8% in FY24 as against 8.4% in FY23.
• Depreciation charges increased by 26.4% and finance costs increased by 44.0% YoY, respectively.
• Other income declined by 13.6% YoY.
• Net profit for the year grew by 49.9% YoY.
• Net profit margins during the year grew from 2.5% in FY23 to 3.1% in FY24.

SANDHAR TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	29,089	35,211	21.0%
Other income	Rs m	125	108	-13.6%
Total Revenues	Rs m	29,214	35,319	20.9%
Gross profit	Rs m	2,452	3,446	40.5%
Depreciation	Rs m	1,215	1,536	26.4%
Interest	Rs m	358	515	44.0%
Profit before tax	Rs m	1,004	1,502	49.7%
Tax	Rs m	268	399	49.0%
Profit after tax	Rs m	736	1,103	49.9%
Gross profit margin	%	8.4	9.8
Effective tax rate	%	26.7	26.6
Net profit margin	%	2.5	3.1

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SANDHAR TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 10 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 23.6%.
• Long-term debt down at Rs 3 billion as compared to Rs 3 billion during FY23, a fall of 6.3%.
• Current assets rose 19% and stood at Rs 9 billion, while fixed assets rose 9% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 24 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 12%.

SANDHAR TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,205	10,166	10.4
Current Liabilities	Rs m	7,835	9,681	23.6
Long-term Debt	Rs m	3,048	2,855	-6.3
Total Liabilities	Rs m	21,490	24,163	12.4
Current assets	Rs m	7,732	9,180	18.7
Fixed Assets	Rs m	13,680	14,975	9.5
Total Assets	Rs m	21,490	24,163	12.4

SANDHAR TECHNOLOGIES Cash Flow Statement Analysis

• SANDHAR TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -71 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 266 million from the Rs 24 million net cash flows seen during FY23.

SANDHAR TECHNOLOGIES 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	3,079	2,748	-10.7%
Cash Flow from Investing Activities	Rs m	-2,475	-2,390	-
Cash Flow from Financing Activities	Rs m	-369	-71	-
Net Cash Flow	Rs m	24	266	1,006.0%

Current Valuations for SANDHAR TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.3, an improvement from the EPS of Rs 12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 613.5, stands at 32.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	483.3	585.0
TTM Earnings per share	Rs	12.2	18.3
Diluted earnings per share	Rs	12.2	18.3
Price to Cash Flow	x	6.2	9.0
TTM P/E ratio	x	15.9	32.9
Price / Book Value ratio	x	1.5	2.3
Market Cap	Rs m	13,895	23,626
Dividends per share (Unadj.)	Rs	2.5	3.3

Ratio Analysis for SANDHAR TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.0x 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 3.9x during FY24, from 3.8x 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 10.8% during FY24, from 8.0% 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 15.5% during FY24, from 11.1% 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 6.7% during FY24, from 5.1% 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	1.0	0.9
Debtors’ Days	Days	446	474
Interest coverage	x	3.8	3.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	5.1	6.7
Return on equity	%	8.0	10.8
Return on capital employed	%	11.1	15.5

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

SANDHAR TECHNOLOGIES Share Price Performance

Over the last one year, SANDHAR TECHNOLOGIES share price has moved up from Rs 405.3 to Rs 613.5, registering a gain of Rs 208.2 or around 51.4%.

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

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