SBFC FINANCE LTD 2023-24 Annual Report Analysis

Thu, 6 Jun

SBFC FINANCE 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.

SBFC FINANCE LTD Income Statement Analysis

• Operating income during the year rose 39.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 40.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 66.8% in FY24 as against 66.1% in FY23.
• Depreciation charges increased by 5.5% and finance costs increased by 26.7% YoY, respectively.
• Other income declined by 83.0% YoY.
• Net profit for the year grew by 58.3% YoY.
• Net profit margins during the year grew from 20.4% in FY23 to 23.3% in FY24.

SBFC FINANCE LTD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	7,328	10,186	39.0%
Other income	Rs m	75	13	-83.0%
Total Revenues	Rs m	7,404	10,199	37.8%
Gross profit	Rs m	4,847	6,808	40.4%
Depreciation	Rs m	127	134	5.5%
Interest	Rs m	2,782	3,525	26.7%
Profit before tax	Rs m	2,014	3,161	57.0%
Tax	Rs m	516	790	53.1%
Profit after tax	Rs m	1,497	2,371	58.3%
Gross profit margin	%	66.1	66.8
Effective tax rate	%	25.6	25.0
Net profit margin	%	20.4	23.3

Don't Miss: Key Information for Long-term Investors

SBFC FINANCE LTD Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -12.4%.
• Long-term debt stood at Rs 40 billion as compared to Rs 37 billion during FY23, a growth of 8.6%.
• Current assets rose 19% and stood at Rs 9 billion, while fixed assets rose 22% and stood at Rs 64 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 73 billion as against Rs 60 billion during FY23, thereby witnessing a growth of 22%.

SBFC FINANCE LTD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	16,971	27,491	62.0
Current Liabilities	Rs m	5,495	4,814	-12.4
Long-term Debt	Rs m	36,788	39,960	8.6
Total Liabilities	Rs m	59,683	72,667	21.8
Current assets	Rs m	7,198	8,575	19.1
Fixed Assets	Rs m	52,486	64,092	22.1
Total Assets	Rs m	59,683	72,667	21.8

SBFC FINANCE LTD Cash Flow Statement Analysis

• SBFC FINANCE LTD's cash flow from operating activities (CFO) during FY24 stood at Rs -12 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 10 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 414 million from the Rs 323 million net cash flows seen during FY23.

SBFC FINANCE 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	-12,446	-11,552	-
Cash Flow from Investing Activities	Rs m	2,059	1,594	-22.6%
Cash Flow from Financing Activities	Rs m	10,710	10,372	-3.2%
Net Cash Flow	Rs m	323	414	28.1%

Current Valuations for SBFC FINANCE LTD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.2, an improvement from the EPS of Rs 1.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 83.4, stands at 37.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 36.5 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	8.2	9.5
TTM Earnings per share	Rs	1.7	2.2
Diluted earnings per share	Rs	1.4	2.2
Price to Cash Flow	x	0.0	36.5
TTM P/E ratio	x	0.0	37.8
Price / Book Value ratio	x	0.0	3.3
Market Cap	Rs m	0	91,387
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SBFC FINANCE LTD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.3x 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 1.9x during FY24, from 1.7x 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 declined and down at 8.6% during FY24, from 8.8% 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 9.9% during FY24, from 8.9% 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 improved and stood at 8.1% during FY24, from 7.2% 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	1.3	1.8
Debtors’ Days	Days	5	5
Interest coverage	x	1.7	1.9
Debt to equity ratio	x	2.2	1.5
Return on assets	%	7.2	8.1
Return on equity	%	8.8	8.6
Return on capital employed	%	8.9	9.9

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

SBFC FINANCE LTD Share Price Performance

Over the last one year, SBFC FINANCE LTD share price has moved up from Rs 0.0 to Rs 83.4, registering a gain of Rs 83.4 or around 0.0%.

Overall, the S&P BSE SENSEX is up 19.0% over the year.

(To know more, check out historical annual results for SBFC FINANCE LTD and quarterly results for SBFC FINANCE LTD)