SHALIMAR WIRE 2022-23 Annual Report Analysis

Wed, 7 Jun

SHALIMAR WIRE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SHALIMAR WIRE Income Statement Analysis

• Operating income during the year rose 24.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 65.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.6% in FY23 as against 17.7% in FY22.
• Depreciation charges increased by 14.8% and finance costs increased by 18.9% YoY, respectively.
• Other income declined by 27.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 0.1% in FY22 to 5.4% in FY23.

SHALIMAR WIRE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	972	1,208	24.3%
Other income	Rs m	39	28	-27.5%
Total Revenues	Rs m	1,010	1,236	22.3%
Gross profit	Rs m	172	285	65.9%
Depreciation	Rs m	85	98	14.8%
Interest	Rs m	126	150	18.9%
Profit before tax	Rs m	-1	65	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-1	65	NA
Gross profit margin	%	17.7	23.6
Effective tax rate	%	0.0	0.0
Net profit margin	%	-0.1	5.4

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SHALIMAR WIRE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 480 million as compared to Rs 644 million in FY22, thereby witnessing an decrease of -25.5%.
• Long-term debt stood at Rs 821 million as compared to Rs 746 million during FY22, a growth of 10.1%.
• Current assets rose 5% and stood at Rs 685 million, while fixed assets fell 6% and stood at Rs 1,000 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 1%.

SHALIMAR WIRE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	262	326	24.3
Current Liabilities	Rs m	644	480	-25.5
Long-term Debt	Rs m	746	821	10.1
Total Liabilities	Rs m	1,710	1,685	-1.5
Current assets	Rs m	650	685	5.4
Fixed Assets	Rs m	1,060	1,000	-5.7
Total Assets	Rs m	1,710	1,685	-1.5

SHALIMAR WIRE Cash Flow Statement Analysis

• SHALIMAR WIRE's cash flow from operating activities (CFO) during FY23 stood at Rs 178 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -30 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -132 million, an improvement of 44% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 16 million from the Rs -45 million net cash flows seen during FY22.

SHALIMAR WIRE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	233	178	-23.6%
Cash Flow from Investing Activities	Rs m	-43	-30	-
Cash Flow from Financing Activities	Rs m	-235	-132	-
Net Cash Flow	Rs m	-45	16	-

Current Valuations for SHALIMAR WIRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.5, an improvement from the EPS of Rs 0.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 18.5, stands at 12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.4 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 4.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	22.7	28.3
TTM Earnings per share	Rs	0.0	1.5
Diluted earnings per share	Rs	0.0	1.5
Price to Cash Flow	x	5.1	4.0
TTM P/E ratio	x	-502.6	12.1
Price / Book Value ratio	x	1.8	2.0
Market Cap	Rs m	473	654
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHALIMAR WIRE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY23, from 1.0x during FY22. 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 1.4x during FY23, from 1.0x during FY22. 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 20.0% during FY23, from -0.3% during FY23. 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 18.7% during FY23, from 12.4% during FY22. 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 12.8% during FY23, from 7.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.4
Debtors’ Days	Days	990	768
Interest coverage	x	1.0	1.4
Debt to equity ratio	x	2.8	2.5
Return on assets	%	7.3	12.8
Return on equity	%	-0.3	20.0
Return on capital employed	%	12.4	18.7

To see how SHALIMAR WIRE has performed over the last 5 years, please visit here.

SHALIMAR WIRE Share Price Performance

Over the last one year, SHALIMAR WIRE share price has moved up from Rs 9.3 to Rs 18.5, registering a gain of Rs 9.1 or around 97.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,782.4 (up 0.3%). Over the last one year it has moved up from 18,095.2 to 19,782.4, a gain of 1,687 points (up 9.3%).

Overall, the S&P BSE SENSEX is up 12.9% over the year.

(To know more, check out historical annual results for SHALIMAR WIRE and quarterly results for SHALIMAR WIRE)