SPML INFRA 2023-24 Annual Report Analysis

Wed, 11 Sep

SPML INFRA 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.

SPML INFRA Income Statement Analysis

• Operating income during the year rose 49.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.2% in FY24 as against 3.3% in FY23.
• Depreciation charges decreased by 25.8% and finance costs increased by 13.3% YoY, respectively.
• Other income grew by 56.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 0.0% in FY23 to 0.1% in FY24.

SPML INFRA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,831	13,190	49.3%
Other income	Rs m	275	430	56.3%
Total Revenues	Rs m	9,107	13,620	49.6%
Gross profit	Rs m	288	160	-44.5%
Depreciation	Rs m	32	24	-25.8%
Interest	Rs m	503	569	13.3%
Profit before tax	Rs m	29	-2	NA
Tax	Rs m	26	14	-46.7%
Profit after tax	Rs m	3	-16	NA
Gross profit margin	%	3.3	1.2
Effective tax rate	%	88.4	-604.8
Net profit margin	%	0.0	-0.1

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SPML INFRA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 16 billion in FY23, thereby witnessing an decrease of -57.2%.
• Long-term debt down at Rs 3 billion as compared to Rs 6 billion during FY23, a fall of 51.9%.
• Current assets fell 41% and stood at Rs 10 billion, while fixed assets fell 24% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 27 billion during FY23, thereby witnessing a fall of 33%.

SPML INFRA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,425	3,202	-6.5
Current Liabilities	Rs m	16,147	6,906	-57.2
Long-term Debt	Rs m	6,359	3,060	-51.9
Total Liabilities	Rs m	26,880	17,884	-33.5
Current assets	Rs m	16,979	10,040	-40.9
Fixed Assets	Rs m	9,902	7,545	-23.8
Total Assets	Rs m	26,880	17,884	-33.5

SPML INFRA Cash Flow Statement Analysis

• SPML INFRA's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 2,867.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -66 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -206 million net cash flows seen during FY23.

SPML INFRA 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	200	5,945	2,867.1%
Cash Flow from Investing Activities	Rs m	459	-66	-
Cash Flow from Financing Activities	Rs m	-866	-4,097	-
Net Cash Flow	Rs m	-206	2,080	-

Current Valuations for SPML INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.3, an decline from the EPS of Rs 0.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 271.0, stands at 160.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 506.0 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	194.4	269.3
TTM Earnings per share	Rs	0.1	-0.3
Diluted earnings per share	Rs	0.1	-0.3
Price to Cash Flow	x	28.6	506.0
TTM P/E ratio	x	328.6	160.6
Price / Book Value ratio	x	0.6	1.2
Market Cap	Rs m	2,093	3,853
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SPML INFRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.1x 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 1.0x during FY24, from 1.1x 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 -0.5% during FY24, from 0.1% 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 9.1% during FY24, from 5.4% 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 3.1% during FY24, from 1.9% 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	1.1	1.5
Debtors’ Days	Days	1,899	1,119
Interest coverage	x	1.1	1.0
Debt to equity ratio	x	1.9	1.0
Return on assets	%	1.9	3.1
Return on equity	%	0.1	-0.5
Return on capital employed	%	5.4	9.1

To see how SPML INFRA has performed over the last 5 years, please visit here.

SPML INFRA Share Price Performance

Over the last one year, SPML INFRA share price has moved up from Rs 42.1 to Rs 271.0, registering a gain of Rs 228.9 or around 543.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,090.5 (down 0.3%). Over the last one year it has moved up from 4,774.4 to 8,090.5, a gain of 3,316 points (up 69.5%).

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

(To know more, check out historical annual results for SPML INFRA and quarterly results for SPML INFRA)