SYNCOM FORMULATIONS 2023-24 Annual Report Analysis

Mon, 23 Sep

SYNCOM FORMULATIONS 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.

SYNCOM FORMULATIONS Income Statement Analysis

• Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.3% in FY24 as against 8.9% in FY23.
• Depreciation charges increased by 4.0% and finance costs increased by 38.8% YoY, respectively.
• Other income declined by 7.4% YoY.
• Net profit for the year grew by 26.1% YoY.
• Net profit margins during the year grew from 8.9% in FY23 to 9.6% in FY24.

SYNCOM FORMULATIONS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,243	2,634	17.5%
Other income	Rs m	146	135	-7.4%
Total Revenues	Rs m	2,389	2,769	15.9%
Gross profit	Rs m	199	299	50.0%
Depreciation	Rs m	45	47	4.0%
Interest	Rs m	34	47	38.8%
Profit before tax	Rs m	266	340	27.8%
Tax	Rs m	65	86	32.9%
Profit after tax	Rs m	201	253	26.1%
Gross profit margin	%	8.9	11.3
Effective tax rate	%	24.5	25.4
Net profit margin	%	8.9	9.6

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SYNCOM FORMULATIONS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -5.9%.
• Current assets rose 51% and stood at Rs 3 billion, while fixed assets fell 34% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 7%.

SYNCOM FORMULATIONS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,560	2,881	12.5
Current Liabilities	Rs m	1,132	1,065	-5.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,778	4,047	7.1
Current assets	Rs m	1,817	2,748	51.2
Fixed Assets	Rs m	1,961	1,299	-33.8
Total Assets	Rs m	3,778	4,047	7.1

SYNCOM FORMULATIONS Cash Flow Statement Analysis

• SYNCOM FORMULATIONS's cash flow from operating activities (CFO) during FY24 stood at Rs -60 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 830 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -146 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 625 million from the Rs 6 million net cash flows seen during FY23.

SYNCOM FORMULATIONS 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	105	-60	-
Cash Flow from Investing Activities	Rs m	-450	830	-
Cash Flow from Financing Activities	Rs m	350	-146	-
Net Cash Flow	Rs m	6	625	10,713.8%

Current Valuations for SYNCOM FORMULATIONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.3, an improvement from the EPS of Rs 0.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 22.1, stands at 72.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.2 times, while the price to sales ratio stands at 7.9 times.
• The company's price to cash flow (P/CF) ratio stood at 38.3 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	2.4	2.8
TTM Earnings per share	Rs	0.2	0.3
Diluted earnings per share	Rs	0.2	0.3
Price to Cash Flow	x	22.5	38.3
TTM P/E ratio	x	27.6	72.6
Price / Book Value ratio	x	3.2	4.0
Market Cap	Rs m	8,249	11,492
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SYNCOM FORMULATIONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.6x during FY24, from 1.6x 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 8.2x during FY24, from 8.8x 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 improved and stood at 8.8% during FY24, from 7.8% 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 13.4% during FY24, from 11.7% 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 improved and stood at 7.4% during FY24, from 6.2% 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	1.6	2.6
Debtors’ Days	Days	1,229	1,432
Interest coverage	x	8.8	8.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.2	7.4
Return on equity	%	7.8	8.8
Return on capital employed	%	11.7	13.4

To see how SYNCOM FORMULATIONS has performed over the last 5 years, please visit here.

SYNCOM FORMULATIONS Share Price Performance

Over the last one year, SYNCOM FORMULATIONS share price has moved up from Rs 8.6 to Rs 22.1, registering a gain of Rs 13.4 or around 155.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 44,231.2 (up 0.2%). Over the last one year it has moved up from 27,763.9 to 44,231.2, a gain of 16,467 points (up 59.3%).

Overall, the S&P BSE SENSEX is up 27.1% over the year.

(To know more, check out historical annual results for SYNCOM FORMULATIONS and quarterly results for SYNCOM FORMULATIONS)