S CHAND AND COMPANY 2023-24 Annual Report Analysis

Tue, 27 Aug

S CHAND AND COMPANY 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.

S CHAND AND COMPANY Income Statement Analysis

• Operating income during the year fell 58.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 78.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY24 as against 18.3% in FY23.
• Depreciation charges decreased by 74.7% and finance costs decreased by 38.1% YoY, respectively.
• Other income declined by 63.2% YoY.
• Net profit for the year declined by 74.3% YoY.
• Net profit margins during the year declined from 9.4% in FY23 to 5.9% in FY24.

S CHAND AND COMPANY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,103	2,506	-58.9%
Other income	Rs m	329	121	-63.2%
Total Revenues	Rs m	6,432	2,627	-59.2%
Gross profit	Rs m	1,118	241	-78.4%
Depreciation	Rs m	464	117	-74.7%
Interest	Rs m	207	128	-38.1%
Profit before tax	Rs m	777	117	-85.0%
Tax	Rs m	201	-31	NA
Profit after tax	Rs m	576	148	-74.3%
Gross profit margin	%	18.3	9.6
Effective tax rate	%	25.8	-26.7
Net profit margin	%	9.4	5.9

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S CHAND AND COMPANY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -35.0%.
• Long-term debt down at Rs 32 million as compared to Rs 255 million during FY23, a fall of 87.3%.
• Current assets fell 53% and stood at Rs 3 billion, while fixed assets rose 28% and stood at Rs 7 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 11 billion during FY23, thereby witnessing a fall of 12%.

S CHAND AND COMPANY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,933	8,507	-4.8
Current Liabilities	Rs m	2,645	1,718	-35.0
Long-term Debt	Rs m	255	32	-87.3
Total Liabilities	Rs m	11,287	9,941	-11.9
Current assets	Rs m	5,527	2,583	-53.3
Fixed Assets	Rs m	5,760	7,358	27.8
Total Assets	Rs m	11,287	9,941	-11.9

S CHAND AND COMPANY Cash Flow Statement Analysis

• S CHAND AND COMPANY 's cash flow from operating activities (CFO) during FY24 stood at Rs 438 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 666 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -946 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 158 million from the Rs 160 million net cash flows seen during FY23.

S CHAND AND COMPANY 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	811	438	-46.0%
Cash Flow from Investing Activities	Rs m	-44	666	-
Cash Flow from Financing Activities	Rs m	-607	-946	-
Net Cash Flow	Rs m	160	158	-0.7%

Current Valuations for S CHAND AND COMPANY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.2, an decline from the EPS of Rs 16.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 230.6, stands at 17.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 34.6 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	173.6	71.1
TTM Earnings per share	Rs	16.4	4.2
Diluted earnings per share	Rs	16.4	4.2
Price to Cash Flow	x	7.5	34.6
TTM P/E ratio	x	13.6	17.2
Price / Book Value ratio	x	0.6	1.1
Market Cap	Rs m	5,751	9,171
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for S CHAND AND COMPANY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 2.1x 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 1.9x during FY24, from 4.8x 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 declined and down at 1.7% during FY24, from 6.4% 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 2.9% during FY24, from 10.7% 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 declined and down at 2.8% during FY24, from 6.9% 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	2.1	1.5
Debtors’ Days	Days	159	186
Interest coverage	x	4.8	1.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.9	2.8
Return on equity	%	6.4	1.7
Return on capital employed	%	10.7	2.9

To see how S CHAND AND COMPANY has performed over the last 5 years, please visit here.

S CHAND AND COMPANY Share Price Performance

Over the last one year, S CHAND AND COMPANY share price has moved down from Rs 239.4 to Rs 230.6, registering a loss of Rs 8.9 or around 3.7%.

Overall, the S&P BSE SENSEX is up 25.1% over the year.

(To know more, check out historical annual results for S CHAND AND COMPANY and quarterly results for S CHAND AND COMPANY )