SHAILY ENG 2023-24 Annual Report Analysis

Mon, 2 Sep

SHAILY ENG 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.

SHAILY ENG Income Statement Analysis

• Operating income during the year rose 6.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.3% in FY24 as against 15.3% in FY23.
• Depreciation charges increased by 7.2% and finance costs decreased by 0.5% YoY, respectively.
• Other income grew by 44.2% YoY.
• Net profit for the year grew by 63.0% YoY.
• Net profit margins during the year grew from 5.8% in FY23 to 8.9% in FY24.

SHAILY ENG Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,071	6,439	6.1%
Other income	Rs m	45	65	44.2%
Total Revenues	Rs m	6,116	6,504	6.3%
Gross profit	Rs m	931	1,180	26.8%
Depreciation	Rs m	333	357	7.2%
Interest	Rs m	191	190	-0.5%
Profit before tax	Rs m	452	698	54.5%
Tax	Rs m	101	126	24.8%
Profit after tax	Rs m	352	573	63.0%
Gross profit margin	%	15.3	18.3
Effective tax rate	%	22.2	18.0
Net profit margin	%	5.8	8.9

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SHAILY ENG Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 10.1%.
• Long-term debt stood at Rs 698 million as compared to Rs 625 million during FY23, a growth of 11.7%.
• Current assets rose 12% and stood at Rs 3 billion, while fixed assets rose 13% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 13%.

SHAILY ENG Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,014	4,581	14.1
Current Liabilities	Rs m	2,082	2,292	10.1
Long-term Debt	Rs m	625	698	11.7
Total Liabilities	Rs m	6,927	7,825	13.0
Current assets	Rs m	2,377	2,672	12.4
Fixed Assets	Rs m	4,550	5,153	13.3
Total Assets	Rs m	6,927	7,825	13.0

SHAILY ENG Cash Flow Statement Analysis

• SHAILY ENG's cash flow from operating activities (CFO) during FY24 stood at Rs 923 million, an improvement of 2.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -938 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 46 million, an improvement of 190% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 31 million from the Rs -160 million net cash flows seen during FY23.

SHAILY ENG 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	900	923	2.5%
Cash Flow from Investing Activities	Rs m	-1,009	-938	-
Cash Flow from Financing Activities	Rs m	-51	46	-
Net Cash Flow	Rs m	-160	31	-

Current Valuations for SHAILY ENG

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.5, an decline from the EPS of Rs 38.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,022.4, stands at 75.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 7.3 times.
• The company's price to cash flow (P/CF) ratio stood at 18.7 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	662.0	140.4
TTM Earnings per share	Rs	38.3	12.5
Diluted earnings per share	Rs	7.7	12.5
Price to Cash Flow	x	13.8	18.7
TTM P/E ratio	x	26.8	75.5
Price / Book Value ratio	x	3.6	3.8
Market Cap	Rs m	14,645	17,393
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for SHAILY ENG

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x 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 4.7x during FY24, from 3.4x 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 12.5% during FY24, from 8.8% 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 improved and stood at 16.8% during FY24, from 13.9% 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 9.7% 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	1.1	1.2
Debtors’ Days	Days	553	665
Interest coverage	x	3.4	4.7
Debt to equity ratio	x	0.2	0.2
Return on assets	%	7.8	9.7
Return on equity	%	8.8	12.5
Return on capital employed	%	13.9	16.8

To see how SHAILY ENG has performed over the last 5 years, please visit here.

SHAILY ENG Share Price Performance

Over the last one year, SHAILY ENG share price has moved up from Rs 348.7 to Rs 1,022.4, registering a gain of Rs 673.6 or around 193.2%.

Overall, the S&P BSE SENSEX is up 27.0% over the year.

(To know more, check out historical annual results for SHAILY ENG and quarterly results for SHAILY ENG)