SHALIMAR PAINTS 2023-24 Annual Report Analysis

Tue, 15 Oct

SHALIMAR PAINTS 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.

SHALIMAR PAINTS Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 10.1% in FY24 as against 3.0% in FY23.
• Depreciation charges increased by 16.8% and finance costs decreased by 18.5% YoY, respectively.
• Other income grew by 12.6% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 7.5% in FY23 to 13.8% in FY24.

SHALIMAR PAINTS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,838	5,349	10.6%
Other income	Rs m	72	81	12.6%
Total Revenues	Rs m	4,910	5,430	10.6%
Gross profit	Rs m	-148	-542	NA
Depreciation	Rs m	127	148	16.8%
Interest	Rs m	159	130	-18.5%
Profit before tax	Rs m	-362	-739	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	-362	-739	NA
Gross profit margin	%	-3.0	-10.1
Effective tax rate	%	0.0	0.0
Net profit margin	%	-7.5	-13.8

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SHALIMAR PAINTS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an decrease of -1.3%.
• Long-term debt stood at Rs 204 million as compared to Rs 146 million during FY23, a growth of 39.4%.
• Current assets rose 0% and stood at Rs 3 billion, while fixed assets rose 16% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 7%.

SHALIMAR PAINTS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,151	3,913	24.2
Current Liabilities	Rs m	2,476	2,443	-1.3
Long-term Debt	Rs m	146	204	39.4
Total Liabilities	Rs m	6,237	6,696	7.4
Current assets	Rs m	3,442	3,450	0.2
Fixed Assets	Rs m	2,795	3,246	16.2
Total Assets	Rs m	6,237	6,696	7.4

SHALIMAR PAINTS Cash Flow Statement Analysis

• SHALIMAR PAINTS's cash flow from operating activities (CFO) during FY24 stood at Rs 177 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -514 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 628 million, an improvement of 1,014% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 291 million from the Rs -1 billion net cash flows seen during FY23.

SHALIMAR PAINTS 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	-479	177	-
Cash Flow from Investing Activities	Rs m	-838	-514	-
Cash Flow from Financing Activities	Rs m	-69	628	-
Net Cash Flow	Rs m	-1,386	291	-

Current Valuations for SHALIMAR PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -8.8, an decline from the EPS of Rs -5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 131.0, stands at -12.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.8 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at -25.4 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	67.0	63.9
TTM Earnings per share	Rs	-5.0	-8.8
Diluted earnings per share	Rs	-4.3	-8.8
Price to Cash Flow	x	-48.7	-25.4
TTM P/E ratio	x	-31.6	-12.1
Price / Book Value ratio	x	3.4	3.8
Market Cap	Rs m	10,816	15,003
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHALIMAR PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.4x during FY24, from 1.4x 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 -4.7x during FY24, from -1.3x 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 -18.9% during FY24, from -11.5% 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 declined and down at -14.8% during FY24, from -6.1% 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 declined and down at -9.1% during FY24, from -3.2% 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	1.4	1.4
Debtors’ Days	Days	8	7
Interest coverage	x	-1.3	-4.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	-3.2	-9.1
Return on equity	%	-11.5	-18.9
Return on capital employed	%	-6.1	-14.8

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

SHALIMAR PAINTS Share Price Performance

Over the last one year, SHALIMAR PAINTS share price has moved down from Rs 193.8 to Rs 131.0, registering a loss of Rs 62.9 or around 32.4%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

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