SENCO GOLD 2023-24 Annual Report Analysis

Thu, 22 Aug

SENCO GOLD 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.

SENCO GOLD Income Statement Analysis

• Operating income during the year rose 28.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 19.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.5% in FY24 as against 8.1% in FY23.
• Depreciation charges increased by 29.5% and finance costs increased by 23.0% YoY, respectively.
• Other income grew by 37.3% YoY.
• Net profit for the year grew by 19.1% YoY.
• Net profit margins during the year declined from 3.9% in FY23 to 3.6% in FY24.

SENCO GOLD Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,774	52,297	28.3%
Other income	Rs m	311	428	37.3%
Total Revenues	Rs m	41,085	52,724	28.3%
Gross profit	Rs m	3,288	3,943	19.9%
Depreciation	Rs m	456	590	29.5%
Interest	Rs m	982	1,208	23.0%
Profit before tax	Rs m	2,162	2,573	19.0%
Tax	Rs m	577	686	18.9%
Profit after tax	Rs m	1,585	1,888	19.1%
Gross profit margin	%	8.1	7.5
Effective tax rate	%	26.7	26.6
Net profit margin	%	3.9	3.6

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SENCO GOLD Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 23 billion as compared to Rs 19 billion in FY23, thereby witnessing an increase of 22.1%.
• Long-term debt down at Rs 11 million as compared to Rs 14 million during FY23, a fall of 26.1%.
• Current assets rose 32% and stood at Rs 35 billion, while fixed assets rose 5% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 42 billion as against Rs 33 billion during FY23, thereby witnessing a growth of 27%.

SENCO GOLD Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,451	13,760	45.6
Current Liabilities	Rs m	19,069	23,290	22.1
Long-term Debt	Rs m	14	11	-26.1
Total Liabilities	Rs m	32,777	41,517	26.7
Current assets	Rs m	26,637	35,081	31.7
Fixed Assets	Rs m	6,140	6,435	4.8
Total Assets	Rs m	32,777	41,517	26.7

SENCO GOLD Cash Flow Statement Analysis

• SENCO GOLD's cash flow from operating activities (CFO) during FY24 stood at Rs -3 billion, an improvement of 280.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 4 billion, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 79 million from the Rs -1 million net cash flows seen during FY23.

SENCO GOLD 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	-761	-2,898	-
Cash Flow from Investing Activities	Rs m	-1,980	-1,229	-
Cash Flow from Financing Activities	Rs m	2,741	4,206	53.5%
Net Cash Flow	Rs m	-1	79	-

Current Valuations for SENCO GOLD

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.3, an decline from the EPS of Rs 28.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,089.3, stands at 41.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 19.7 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	730.1	673.1
TTM Earnings per share	Rs	28.4	24.3
Diluted earnings per share	Rs	20.4	24.3
Price to Cash Flow	x	0.0	19.7
TTM P/E ratio	x	0.0	41.4
Price / Book Value ratio	x	0.0	3.5
Market Cap	Rs m	0	48,726
Dividends per share (Unadj.)	Rs	1.5	2.0

Ratio Analysis for SENCO GOLD

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.4x 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 3.1x during FY24, from 3.2x 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 13.7% during FY24, from 16.8% 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 declined and down at 27.5% during FY24, from 33.2% 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 7.5% during FY24, from 7.8% 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	1.4	1.5
Debtors’ Days	Days	4	4
Interest coverage	x	3.2	3.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.8	7.5
Return on equity	%	16.8	13.7
Return on capital employed	%	33.2	27.5

To see how SENCO GOLD has performed over the last 5 years, please visit here.

SENCO GOLD Share Price Performance

Over the last one year, SENCO GOLD share price has moved up from Rs 413.6 to Rs 1,089.3, registering a gain of Rs 675.7 or around 163.4%.

Overall, the S&P BSE SENSEX is up 24.3% over the year.

(To know more, check out historical annual results for SENCO GOLD and quarterly results for SENCO GOLD)