SUDARSHAN CHEMICAL 2023-24 Annual Report Analysis

Wed, 17 Jul

SUDARSHAN CHEMICAL 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.

SUDARSHAN CHEMICAL Income Statement Analysis

• Operating income during the year rose 10.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 196.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.9% in FY24 as against 9.3% in FY23.
• Depreciation charges increased by 23.6% and finance costs decreased by 11.7% YoY, respectively.
• Other income grew by 286.5% YoY.
• Net profit for the year grew by 698.4% YoY.
• Net profit margins during the year grew from 1.9% in FY23 to 14.1% in FY24.

SUDARSHAN CHEMICAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	23,017	25,388	10.3%
Other income	Rs m	48	185	286.5%
Total Revenues	Rs m	23,065	25,573	10.9%
Gross profit	Rs m	2,132	6,321	196.4%
Depreciation	Rs m	1,142	1,412	23.6%
Interest	Rs m	440	389	-11.7%
Profit before tax	Rs m	597	4,705	687.6%
Tax	Rs m	150	1,131	655.4%
Profit after tax	Rs m	448	3,574	698.4%
Gross profit margin	%	9.3	24.9
Effective tax rate	%	25.1	24.0
Net profit margin	%	1.9	14.1

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SUDARSHAN CHEMICAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 11 billion as compared to Rs 12 billion in FY23, thereby witnessing an decrease of -5.3%.
• Long-term debt down at Rs 2 billion as compared to Rs 4 billion during FY23, a fall of 57.0%.
• Current assets rose 10% and stood at Rs 14 billion, while fixed assets fell 10% and stood at Rs 13 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 27 billion during FY23, thereby witnessing a fall of 2%.

SUDARSHAN CHEMICAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,249	11,444	38.7
Current Liabilities	Rs m	11,595	10,976	-5.3
Long-term Debt	Rs m	4,492	1,933	-57.0
Total Liabilities	Rs m	27,345	26,924	-1.5
Current assets	Rs m	13,027	14,284	9.7
Fixed Assets	Rs m	14,034	12,641	-9.9
Total Assets	Rs m	27,345	26,924	-1.5

SUDARSHAN CHEMICAL Cash Flow Statement Analysis

• SUDARSHAN CHEMICAL's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 3 billion 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 268 million from the Rs -49 million net cash flows seen during FY23.

SUDARSHAN CHEMICAL 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	2,870	1,935	-32.6%
Cash Flow from Investing Activities	Rs m	-1,893	2,793	-
Cash Flow from Financing Activities	Rs m	-1,027	-4,459	-
Net Cash Flow	Rs m	-49	268	-

Current Valuations for SUDARSHAN CHEMICAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 51.6, an improvement from the EPS of Rs 6.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 920.7, stands at 17.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 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	332.5	366.7
TTM Earnings per share	Rs	6.5	51.6
Diluted earnings per share	Rs	6.5	51.6
Price to Cash Flow	x	17.0	7.0
TTM P/E ratio	x	60.3	17.8
Price / Book Value ratio	x	3.8	3.1
Market Cap	Rs m	31,465	35,034
Dividends per share (Unadj.)	Rs	1.5	4.6

Ratio Analysis for SUDARSHAN CHEMICAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 improved and stood at 13.1x during FY24, from 2.4x 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 31.2% during FY24, from 5.4% 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 improved and stood at 38.1% during FY24, from 8.1% 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 14.7% during FY24, from 3.2% 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	1.1	1.3
Debtors’ Days	Days	771	842
Interest coverage	x	2.4	13.1
Debt to equity ratio	x	0.5	0.2
Return on assets	%	3.2	14.7
Return on equity	%	5.4	31.2
Return on capital employed	%	8.1	38.1

To see how SUDARSHAN CHEMICAL has performed over the last 5 years, please visit here.

SUDARSHAN CHEMICAL Share Price Performance

Over the last one year, SUDARSHAN CHEMICAL share price has moved up from Rs 487.1 to Rs 920.7, registering a gain of Rs 433.6 or around 89.0%.

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for SUDARSHAN CHEMICAL and quarterly results for SUDARSHAN CHEMICAL)