SHALBY 2023-24 Annual Report Analysis

Mon, 14 Oct

SHALBY 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.

SHALBY Income Statement Analysis

• Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.1% in FY24 as against 17.2% in FY23.
• Depreciation charges increased by 8.6% and finance costs increased by 66.8% YoY, respectively.
• Other income declined by 13.7% YoY.
• Net profit for the year grew by 23.4% YoY.
• Net profit margins during the year grew from 8.4% in FY23 to 8.9% in FY24.

SHALBY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,049	9,337	16.0%
Other income	Rs m	225	194	-13.7%
Total Revenues	Rs m	8,274	9,532	15.2%
Gross profit	Rs m	1,382	1,786	29.3%
Depreciation	Rs m	481	522	8.6%
Interest	Rs m	106	176	66.8%
Profit before tax	Rs m	1,020	1,282	25.6%
Tax	Rs m	344	447	30.1%
Profit after tax	Rs m	677	835	23.4%
Gross profit margin	%	17.2	19.1
Effective tax rate	%	33.7	34.9
Net profit margin	%	8.4	8.9

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

SHALBY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 3 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 66.3%.
• Long-term debt stood at Rs 2 billion as compared to Rs 674 million during FY23, a growth of 161.0%.
• Current assets rose 7% and stood at Rs 6 billion, while fixed assets rose 33% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 14 billion during FY23, thereby witnessing a growth of 24%.

SHALBY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,269	9,996	7.8
Current Liabilities	Rs m	1,944	3,233	66.3
Long-term Debt	Rs m	674	1,760	161.0
Total Liabilities	Rs m	13,915	17,189	23.5
Current assets	Rs m	5,173	5,523	6.8
Fixed Assets	Rs m	8,742	11,666	33.4
Total Assets	Rs m	13,915	17,189	23.5

SHALBY Cash Flow Statement Analysis

• SHALBY 's cash flow from operating activities (CFO) during FY24 stood at Rs 196 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 381 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 149 million from the Rs -433 million net cash flows seen during FY23.

SHALBY 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	678	196	-71.1%
Cash Flow from Investing Activities	Rs m	-611	381	-
Cash Flow from Financing Activities	Rs m	-500	-1,507	-
Net Cash Flow	Rs m	-433	149	-

Current Valuations for SHALBY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.8, an improvement from the EPS of Rs 6.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 259.2, stands at 36.2 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 3.0 times.
• The company's price to cash flow (P/CF) ratio stood at 18.5 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	75.0	86.9
TTM Earnings per share	Rs	6.3	7.8
Diluted earnings per share	Rs	6.3	7.7
Price to Cash Flow	x	12.6	18.5
TTM P/E ratio	x	21.5	36.2
Price / Book Value ratio	x	1.5	2.5
Market Cap	Rs m	14,114	25,153
Dividends per share (Unadj.)	Rs	1.2	1.2

Ratio Analysis for SHALBY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 2.7x 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 8.3x during FY24, from 10.7x 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 8.4% during FY24, from 7.3% 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 12.4% during FY24, from 11.3% 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 5.9% during FY24, from 5.6% 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	2.7	1.7
Debtors’ Days	Days	48	57
Interest coverage	x	10.7	8.3
Debt to equity ratio	x	0.1	0.2
Return on assets	%	5.6	5.9
Return on equity	%	7.3	8.4
Return on capital employed	%	11.3	12.4

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

SHALBY Share Price Performance

Over the last one year, SHALBY share price has moved down from Rs 275.7 to Rs 259.2, registering a loss of Rs 16.5 or around 6.0%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 44,628.7 (up 0.4%). Over the last one year it has moved up from 28,300.4 to 44,628.7, a gain of 16,328 points (up 57.7%).

Overall, the S&P BSE SENSEX is up 24.1% over the year.

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