SHANTHI GEARS 2023-24 Annual Report Analysis

Mon, 8 Jul

SHANTHI GEARS 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.

SHANTHI GEARS Income Statement Analysis

• Operating income during the year rose 20.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.1% in FY24 as against 20.2% in FY23.
• Depreciation charges increased by 21.4% and finance costs increased by 40.5% YoY, respectively.
• Other income grew by 87.4% YoY.
• Net profit for the year grew by 22.7% YoY.
• Net profit margins during the year grew from 15.0% in FY23 to 15.3% in FY24.

SHANTHI GEARS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,457	5,361	20.3%
Other income	Rs m	112	211	87.4%
Total Revenues	Rs m	4,569	5,571	21.9%
Gross profit	Rs m	902	1,023	13.4%
Depreciation	Rs m	109	132	21.4%
Interest	Rs m	4	5	40.5%
Profit before tax	Rs m	902	1,096	21.6%
Tax	Rs m	231	274	18.4%
Profit after tax	Rs m	671	823	22.7%
Gross profit margin	%	20.2	19.1
Effective tax rate	%	25.7	25.0
Net profit margin	%	15.0	15.3

Don't Miss: Key Information for Long-term Investors

SHANTHI GEARS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 970 million in FY23, thereby witnessing an increase of 28.4%.
• Current assets rose 22% and stood at Rs 4 billion, while fixed assets rose 6% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 18%.

SHANTHI GEARS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,024	3,453	14.2
Current Liabilities	Rs m	970	1,246	28.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,955	4,650	17.6
Current assets	Rs m	2,921	3,551	21.5
Fixed Assets	Rs m	1,034	1,099	6.4
Total Assets	Rs m	3,955	4,650	17.6

SHANTHI GEARS Cash Flow Statement Analysis

• SHANTHI GEARS's cash flow from operating activities (CFO) during FY24 stood at Rs 363 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -123 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -384 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -144 million from the Rs 138 million net cash flows seen during FY23.

SHANTHI GEARS 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	630	363	-42.4%
Cash Flow from Investing Activities	Rs m	-262	-123	-
Cash Flow from Financing Activities	Rs m	-230	-384	-
Net Cash Flow	Rs m	138	-144	-

Current Valuations for SHANTHI GEARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.7, an improvement from the EPS of Rs 8.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 616.9, stands at 57.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 13.7 times, while the price to sales ratio stands at 8.8 times.
• The company's price to cash flow (P/CF) ratio stood at 39.8 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	58.1	69.9
TTM Earnings per share	Rs	8.7	10.7
Diluted earnings per share	Rs	8.7	10.7
Price to Cash Flow	x	35.8	39.8
TTM P/E ratio	x	41.6	57.5
Price / Book Value ratio	x	7.4	11.0
Market Cap	Rs m	22,286	37,948
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for SHANTHI GEARS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.9x during FY24, from 3.0x 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 211.8x during FY24, from 244.8x 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 23.8% during FY24, from 22.2% 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 31.9% during FY24, from 30.0% 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 17.8% during FY24, from 17.0% 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	3.0	2.9
Debtors’ Days	Days	6	8
Interest coverage	x	244.8	211.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	17.0	17.8
Return on equity	%	22.2	23.8
Return on capital employed	%	30.0	31.9

To see how SHANTHI GEARS has performed over the last 5 years, please visit here.

SHANTHI GEARS Share Price Performance

Over the last one year, SHANTHI GEARS share price has moved up from Rs 458.8 to Rs 616.9, registering a gain of Rs 158.2 or around 34.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 75,429.9 (up 0.4%). Over the last one year it has moved up from 40,670.4 to 75,429.9, a gain of 34,760 points (up 85.5%).

Overall, the S&P BSE SENSEX is up 21.9% over the year.

(To know more, check out historical annual results for SHANTHI GEARS and quarterly results for SHANTHI GEARS)