SYNERGY GREEN INDUSTRIES 2023-24 Annual Report Analysis

Wed, 31 Jul

SYNERGY GREEN INDUSTRIES 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.

SYNERGY GREEN INDUSTRIES Income Statement Analysis

• Operating income during the year rose 12.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.0% in FY24 as against 9.0% in FY23.
• Depreciation charges increased by 0.9% and finance costs decreased by 5.2% YoY, respectively.
• Other income grew by 157.7% YoY.
• Net profit for the year grew by 1233.6% YoY.
• Net profit margins during the year grew from 0.3% in FY23 to 3.5% in FY24.

SYNERGY GREEN INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,897	3,263	12.6%
Other income	Rs m	7	18	157.7%
Total Revenues	Rs m	2,904	3,281	13.0%
Gross profit	Rs m	261	393	50.8%
Depreciation	Rs m	120	121	0.9%
Interest	Rs m	141	133	-5.2%
Profit before tax	Rs m	7	157	2,159.2%
Tax	Rs m	-2	41	NA
Profit after tax	Rs m	9	116	1,233.6%
Gross profit margin	%	9.0	12.0
Effective tax rate	%	-25.3	26.1
Net profit margin	%	0.3	3.5

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

SYNERGY GREEN INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 989 million in FY23, thereby witnessing an increase of 18.5%.
• Long-term debt down at Rs 317 million as compared to Rs 421 million during FY23, a fall of 24.6%.
• Current assets rose 8% and stood at Rs 1 billion, while fixed assets rose 10% and stood at Rs 902 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 9%.

SYNERGY GREEN INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	351	467	33.0
Current Liabilities	Rs m	989	1,172	18.5
Long-term Debt	Rs m	421	317	-24.6
Total Liabilities	Rs m	1,818	1,980	8.9
Current assets	Rs m	1,000	1,078	7.8
Fixed Assets	Rs m	818	902	10.3
Total Assets	Rs m	1,818	1,980	8.9

SYNERGY GREEN INDUSTRIES Cash Flow Statement Analysis

• SYNERGY GREEN INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 377 million, an improvement of 46.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -191 million, an improvement of 38.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -148 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 38 million from the Rs 2 million net cash flows seen during FY23.

SYNERGY GREEN INDUSTRIES 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	257	377	46.8%
Cash Flow from Investing Activities	Rs m	-138	-191	-
Cash Flow from Financing Activities	Rs m	-117	-148	-
Net Cash Flow	Rs m	2	38	1,759.6%

Current Valuations for SYNERGY GREEN INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 365.5, stands at 44.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.1 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 16.6 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	205.0	230.9
TTM Earnings per share	Rs	0.6	8.2
Diluted earnings per share	Rs	0.6	8.2
Price to Cash Flow	x	13.3	16.6
TTM P/E ratio	x	197.8	44.7
Price / Book Value ratio	x	6.3	8.4
Market Cap	Rs m	2,207	3,925
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SYNERGY GREEN INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.0x 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 improved and stood at 2.2x during FY24, from 1.0x 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 improved and stood at 24.8% during FY24, from 2.5% 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 37.0% during FY24, from 19.1% 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 12.6% during FY24, from 8.2% 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	1.0	0.9
Debtors’ Days	Days	278	385
Interest coverage	x	1.0	2.2
Debt to equity ratio	x	1.2	0.7
Return on assets	%	8.2	12.6
Return on equity	%	2.5	24.8
Return on capital employed	%	19.1	37.0

To see how SYNERGY GREEN INDUSTRIES has performed over the last 5 years, please visit here.

SYNERGY GREEN INDUSTRIES Share Price Performance

Over the last one year, SYNERGY GREEN INDUSTRIES share price has moved up from Rs 196.2 to Rs 365.5, registering a gain of Rs 169.3 or around 86.3%.

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

(To know more, check out historical annual results for SYNERGY GREEN INDUSTRIES and quarterly results for SYNERGY GREEN INDUSTRIES)