SERVOTECH POWER SYSTEMS 2023-24 Annual Report Analysis

Thu, 28 Nov

SERVOTECH POWER SYSTEMS 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.

SERVOTECH POWER SYSTEMS Income Statement Analysis

• Operating income during the year rose 27.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 5.9% in FY24 as against 6.7% in FY23.
• Depreciation charges increased by 42.7% and finance costs increased by 12.8% YoY, respectively.
• Other income grew by 165.5% YoY.
• Net profit for the year grew by 6.7% YoY.
• Net profit margins during the year declined from 4.0% in FY23 to 3.3% in FY24.

SERVOTECH POWER SYSTEMS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,785	3,537	27.0%
Other income	Rs m	6	16	165.5%
Total Revenues	Rs m	2,791	3,553	27.3%
Gross profit	Rs m	188	208	10.6%
Depreciation	Rs m	21	30	42.7%
Interest	Rs m	28	32	12.8%
Profit before tax	Rs m	144	162	12.0%
Tax	Rs m	34	44	29.4%
Profit after tax	Rs m	111	118	6.7%
Gross profit margin	%	6.7	5.9
Effective tax rate	%	23.4	27.0
Net profit margin	%	4.0	3.3

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SERVOTECH POWER SYSTEMS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 750 million in FY23, thereby witnessing an increase of 51.7%.
• Long-term debt stood at Rs 131 million as compared to Rs 75 million during FY23, a growth of 74.4%.
• Current assets rose 67% and stood at Rs 2 billion, while fixed assets rose 61% and stood at Rs 619 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 66%.

SERVOTECH POWER SYSTEMS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	811	1,045	28.9
Current Liabilities	Rs m	750	1,138	51.7
Long-term Debt	Rs m	75	131	74.4
Total Liabilities	Rs m	1,665	2,764	65.9
Current assets	Rs m	1,281	2,144	67.4
Fixed Assets	Rs m	385	619	61.0
Total Assets	Rs m	1,665	2,764	65.9

SERVOTECH POWER SYSTEMS Cash Flow Statement Analysis

• SERVOTECH POWER SYSTEMS 's cash flow from operating activities (CFO) during FY24 stood at Rs 8 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -260 million, an improvement of 101.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 754 million, an improvement of 66% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 502 million from the Rs 83 million net cash flows seen during FY23.

SERVOTECH POWER SYSTEMS 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	-243	8	-
Cash Flow from Investing Activities	Rs m	-129	-260	-
Cash Flow from Financing Activities	Rs m	455	754	65.9%
Net Cash Flow	Rs m	83	502	504.7%

Current Valuations for SERVOTECH POWER SYSTEMS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.5, an decline from the EPS of Rs 1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 177.5, stands at 192.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 37.3 times, while the price to sales ratio stands at 10.9 times.
• The company's price to cash flow (P/CF) ratio stood at 263.0 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	26.2	16.3
TTM Earnings per share	Rs	1.0	0.5
Diluted earnings per share	Rs	0.5	0.5
Price to Cash Flow	x	0.0	263.0
TTM P/E ratio	x	0.0	192.3
Price / Book Value ratio	x	16.1	0.0
Market Cap	Rs m	13,068	39,038
Dividends per share (Unadj.)	Rs	0.2	0.3

Ratio Analysis for SERVOTECH POWER SYSTEMS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.7x 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 6.1x during FY24, from 6.1x 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 11.3% during FY24, from 13.6% 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 16.5% during FY24, from 19.5% 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 5.4% during FY24, from 8.3% 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	1.7	1.9
Debtors’ Days	Days	1,121	892
Interest coverage	x	6.1	6.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.3	5.4
Return on equity	%	13.6	11.3
Return on capital employed	%	19.5	16.5

To see how SERVOTECH POWER SYSTEMS has performed over the last 5 years, please visit here.

SERVOTECH POWER SYSTEMS Share Price Performance

Over the last one year, SERVOTECH POWER SYSTEMS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.2% over the year.

(To know more, check out historical annual results for SERVOTECH POWER SYSTEMS and quarterly results for SERVOTECH POWER SYSTEMS )