SBC EXPORTS 2023-24 Annual Report Analysis

Tue, 29 Oct

SBC EXPORTS 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.

SBC EXPORTS Income Statement Analysis

• Operating income during the year rose 7.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 62.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.3% in FY24 as against 5.5% in FY23.
• Depreciation charges increased by 43.1% and finance costs increased by 177.0% YoY, respectively.
• Other income grew by 74.8% YoY.
• Net profit for the year grew by 34.3% YoY.
• Net profit margins during the year grew from 3.5% in FY23 to 4.4% in FY24.

SBC EXPORTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,957	2,094	7.0%
Other income	Rs m	21	37	74.8%
Total Revenues	Rs m	1,978	2,131	7.7%
Gross profit	Rs m	107	174	62.8%
Depreciation	Rs m	11	16	43.1%
Interest	Rs m	24	65	177.0%
Profit before tax	Rs m	93	129	38.9%
Tax	Rs m	24	37	52.1%
Profit after tax	Rs m	69	93	34.3%
Gross profit margin	%	5.5	8.3
Effective tax rate	%	25.9	28.3
Net profit margin	%	3.5	4.4

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SBC EXPORTS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 744 million in FY23, thereby witnessing an increase of 54.0%.
• Long-term debt stood at Rs 249 million as compared to Rs 57 million during FY23, a growth of 335.6%.
• Current assets rose 51% and stood at Rs 2 billion, while fixed assets rose 125% and stood at Rs 325 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 61%.

SBC EXPORTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	345	442	28.1
Current Liabilities	Rs m	744	1,147	54.0
Long-term Debt	Rs m	57	249	335.6
Total Liabilities	Rs m	1,152	1,849	60.6
Current assets	Rs m	1,007	1,524	51.3
Fixed Assets	Rs m	144	325	125.4
Total Assets	Rs m	1,152	1,849	60.6

SBC EXPORTS Cash Flow Statement Analysis

• SBC EXPORTS's cash flow from operating activities (CFO) during FY24 stood at Rs -48 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -197 million, an improvement of 244.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 248 million, an improvement of 42% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 million from the Rs 9 million net cash flows seen during FY23.

SBC EXPORTS 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	-108	-48	-
Cash Flow from Investing Activities	Rs m	-57	-197	-
Cash Flow from Financing Activities	Rs m	174	248	42.3%
Net Cash Flow	Rs m	9	3	-65.6%

Current Valuations for SBC EXPORTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an decline from the EPS of Rs 0.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.5, stands at 51.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.8 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 67.8 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	9.2	6.6
TTM Earnings per share	Rs	0.3	0.3
Diluted earnings per share	Rs	0.2	0.3
Price to Cash Flow	x	50.9	67.8
TTM P/E ratio	x	43.8	51.8
Price / Book Value ratio	x	7.1	16.6
Market Cap	Rs m	2,466	7,352
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SBC EXPORTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x 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 deteriorated and stood at 3.0x during FY24, from 5.0x 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 21.0% during FY24, from 20.0% 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 declined and down at 28.2% during FY24, from 29.1% 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 8.5% during FY24, from 8.0% 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	1.3
Debtors’ Days	Days	104,271	158,334
Interest coverage	x	5.0	3.0
Debt to equity ratio	x	0.2	0.6
Return on assets	%	8.0	8.5
Return on equity	%	20.0	21.0
Return on capital employed	%	29.1	28.2

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

SBC EXPORTS Share Price Performance

Over the last one year, SBC EXPORTS share price has moved up from Rs 19.2 to Rs 27.5, registering a gain of Rs 8.4 or around 43.6%.

Overall, the S&P BSE SENSEX is up 24.2% over the year.

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