SANGAM INDIA 2023-24 Annual Report Analysis

Wed, 18 Sep

SANGAM INDIA 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.

SANGAM INDIA Income Statement Analysis

• Operating income during the year fell 3.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 24.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.9% in FY24 as against 10.2% in FY23.
• Depreciation charges increased by 21.9% and finance costs increased by 32.5% YoY, respectively.
• Other income declined by 25.4% YoY.
• Net profit for the year declined by 68.7% YoY.
• Net profit margins during the year declined from 4.8% in FY23 to 1.6% in FY24.

SANGAM INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	27,123	26,281	-3.1%
Other income	Rs m	171	128	-25.4%
Total Revenues	Rs m	27,294	26,409	-3.2%
Gross profit	Rs m	2,758	2,088	-24.3%
Depreciation	Rs m	794	968	21.9%
Interest	Rs m	539	714	32.5%
Profit before tax	Rs m	1,597	534	-66.6%
Tax	Rs m	291	126	-56.8%
Profit after tax	Rs m	1,305	408	-68.7%
Gross profit margin	%	10.2	7.9
Effective tax rate	%	18.2	23.5
Net profit margin	%	4.8	1.6

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SANGAM INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 19.9%.
• Long-term debt stood at Rs 6 billion as compared to Rs 3 billion during FY23, a growth of 82.2%.
• Current assets rose 27% and stood at Rs 14 billion, while fixed assets rose 25% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 22 billion during FY23, thereby witnessing a growth of 26%.

SANGAM INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,597	9,843	14.5
Current Liabilities	Rs m	8,921	10,700	19.9
Long-term Debt	Rs m	3,395	6,187	82.2
Total Liabilities	Rs m	21,606	27,289	26.3
Current assets	Rs m	10,665	13,568	27.2
Fixed Assets	Rs m	10,940	13,721	25.4
Total Assets	Rs m	21,606	27,289	26.3

SANGAM INDIA Cash Flow Statement Analysis

• SANGAM INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 10.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 60% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 million from the Rs 57 million net cash flows seen during FY23.

SANGAM INDIA 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	2,158	1,601	-25.8%
Cash Flow from Investing Activities	Rs m	-3,536	-3,896	-
Cash Flow from Financing Activities	Rs m	1,434	2,298	60.2%
Net Cash Flow	Rs m	57	3	-94.7%

Current Valuations for SANGAM INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.1, an decline from the EPS of Rs 29.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 423.2, stands at 50.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 15.4 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	602.1	523.0
TTM Earnings per share	Rs	29.0	8.1
Diluted earnings per share	Rs	26.0	8.1
Price to Cash Flow	x	5.2	15.4
TTM P/E ratio	x	8.3	50.2
Price / Book Value ratio	x	1.6	2.2
Market Cap	Rs m	13,672	21,234
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for SANGAM INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 1.7x during FY24, from 4.0x 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 4.1% during FY24, from 15.2% 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 declined and down at 7.8% during FY24, from 17.8% 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 4.1% during FY24, from 8.5% 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	1.2	1.3
Debtors’ Days	Days	475	623
Interest coverage	x	4.0	1.7
Debt to equity ratio	x	0.4	0.6
Return on assets	%	8.5	4.1
Return on equity	%	15.2	4.1
Return on capital employed	%	17.8	7.8

To see how SANGAM INDIA has performed over the last 5 years, please visit here.

SANGAM INDIA Share Price Performance

Over the last one year, SANGAM INDIA share price has moved up from Rs 335.1 to Rs 423.2, registering a gain of Rs 88.1 or around 26.3%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

(To know more, check out historical annual results for SANGAM INDIA and quarterly results for SANGAM INDIA)