SURATWWALA BUSINESS GROUP 2023-24 Annual Report Analysis

Mon, 23 Sep

SURATWWALA BUSINESS GROUP 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.

SURATWWALA BUSINESS GROUP Income Statement Analysis

• Operating income during the year rose 15.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 54.6% in FY24 as against 48.2% in FY23.
• Depreciation charges increased by 91.2% and finance costs decreased by 25.9% YoY, respectively.
• Other income grew by 218.5% YoY.
• Net profit for the year grew by 31.3% YoY.
• Net profit margins during the year grew from 34.0% in FY23 to 38.6% in FY24.

SURATWWALA BUSINESS GROUP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	623	720	15.6%
Other income	Rs m	2	6	218.5%
Total Revenues	Rs m	625	726	16.2%
Gross profit	Rs m	300	393	31.0%
Depreciation	Rs m	2	4	91.2%
Interest	Rs m	26	19	-25.9%
Profit before tax	Rs m	274	377	37.2%
Tax	Rs m	63	99	57.0%
Profit after tax	Rs m	212	278	31.3%
Gross profit margin	%	48.2	54.6
Effective tax rate	%	22.9	26.2
Net profit margin	%	34.0	38.6

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SURATWWALA BUSINESS GROUP Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 625 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -38.7%.
• Long-term debt down at Rs 50 million as compared to Rs 51 million during FY23, a fall of 1.0%.
• Current assets rose 15% and stood at Rs 1 billion, while fixed assets fell 67% and stood at Rs 46 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 6%.

SURATWWALA BUSINESS GROUP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	111	579	420.3
Current Liabilities	Rs m	1,019	625	-38.7
Long-term Debt	Rs m	51	50	-1.0
Total Liabilities	Rs m	1,201	1,271	5.8
Current assets	Rs m	1,063	1,225	15.2
Fixed Assets	Rs m	138	46	-66.7
Total Assets	Rs m	1,201	1,271	5.8

SURATWWALA BUSINESS GROUP Cash Flow Statement Analysis

• SURATWWALA BUSINESS GROUP's cash flow from operating activities (CFO) during FY24 stood at Rs 3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -16 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 61 million, an improvement of 144% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 48 million from the Rs 2 million net cash flows seen during FY23.

SURATWWALA BUSINESS GROUP 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	-104	3	-
Cash Flow from Investing Activities	Rs m	246	-16	-
Cash Flow from Financing Activities	Rs m	-140	61	-
Net Cash Flow	Rs m	2	48	2,102.8%

Current Valuations for SURATWWALA BUSINESS GROUP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an decline from the EPS of Rs 12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 107.0, stands at 76.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 32.1 times, while the price to sales ratio stands at 25.8 times.
• The company's price to cash flow (P/CF) ratio stood at 33.2 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	35.9	4.2
TTM Earnings per share	Rs	12.2	1.6
Diluted earnings per share	Rs	1.2	1.6
Price to Cash Flow	x	15.1	33.2
TTM P/E ratio	x	15.2	76.0
Price / Book Value ratio	x	37.6	16.2
Market Cap	Rs m	4,177	9,354
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SURATWWALA BUSINESS GROUP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x 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 20.7x during FY24, from 11.6x 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 declined and down at 48.0% during FY24, from 190.3% 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 declined and down at 62.9% during FY24, from 185.4% 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 23.4% during FY24, from 19.8% 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	1.0	2.0
Debtors’ Days	Days	40	346
Interest coverage	x	11.6	20.7
Debt to equity ratio	x	0.5	0.1
Return on assets	%	19.8	23.4
Return on equity	%	190.3	48.0
Return on capital employed	%	185.4	62.9

To see how SURATWWALA BUSINESS GROUP has performed over the last 5 years, please visit here.

SURATWWALA BUSINESS GROUP Share Price Performance

Over the last one year, SURATWWALA BUSINESS GROUP share price has moved up from Rs 37.4 to Rs 107.0, registering a gain of Rs 69.6 or around 186.3%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,794.6 (up 2.1%). Over the last one year it has moved up from 4,492.0 to 8,794.6, a gain of 4,303 points (up 95.8%).

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for SURATWWALA BUSINESS GROUP and quarterly results for SURATWWALA BUSINESS GROUP)