SHARDA CROPCHEM 2023-24 Annual Report Analysis

Thu, 11 Jul

SHARDA CROPCHEM 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.

SHARDA CROPCHEM Income Statement Analysis

• Operating income during the year fell 21.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 53.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.6% in FY24 as against 16.3% in FY23.
• Depreciation charges increased by 7.7% and finance costs increased by 19.9% YoY, respectively.
• Other income grew by 48.4% YoY.
• Net profit for the year declined by 90.7% YoY.
• Net profit margins during the year declined from 8.5% in FY23 to 1.0% in FY24.

SHARDA CROPCHEM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,452	31,630	-21.8%
Other income	Rs m	403	598	48.4%
Total Revenues	Rs m	40,854	32,228	-21.1%
Gross profit	Rs m	6,588	3,034	-53.9%
Depreciation	Rs m	2,481	2,671	7.7%
Interest	Rs m	202	242	19.9%
Profit before tax	Rs m	4,307	719	-83.3%
Tax	Rs m	888	400	-55.0%
Profit after tax	Rs m	3,420	319	-90.7%
Gross profit margin	%	16.3	9.6
Effective tax rate	%	20.6	55.6
Net profit margin	%	8.5	1.0

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

SHARDA CROPCHEM Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 16 billion as compared to Rs 20 billion in FY23, thereby witnessing an decrease of -20.5%.
• Current assets fell 10% and stood at Rs 30 billion, while fixed assets rose 4% and stood at Rs 16 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 46 billion as against Rs 49 billion during FY23, thereby witnessing a fall of 6%.

SHARDA CROPCHEM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,320	22,371	0.2
Current Liabilities	Rs m	20,265	16,102	-20.5
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	48,757	45,922	-5.8
Current assets	Rs m	33,141	29,676	-10.5
Fixed Assets	Rs m	15,616	16,246	4.0
Total Assets	Rs m	48,757	45,922	-5.8

SHARDA CROPCHEM Cash Flow Statement Analysis

• SHARDA CROPCHEM's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 4.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 171.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -369 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -890 million from the Rs 1 billion net cash flows seen during FY23.

SHARDA CROPCHEM 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	3,283	3,413	4.0%
Cash Flow from Investing Activities	Rs m	-1,452	-3,935	-
Cash Flow from Financing Activities	Rs m	-971	-369	-
Net Cash Flow	Rs m	1,197	-890	-

Current Valuations for SHARDA CROPCHEM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an decline from the EPS of Rs 37.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 502.3, stands at 142.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.5 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	448.4	350.6
TTM Earnings per share	Rs	37.9	3.5
Diluted earnings per share	Rs	37.9	3.5
Price to Cash Flow	x	7.5	13.5
TTM P/E ratio	x	12.9	142.0
Price / Book Value ratio	x	2.3	1.8
Market Cap	Rs m	51,268	40,509
Dividends per share (Unadj.)	Rs	6.0	3.0

Ratio Analysis for SHARDA CROPCHEM

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.6x 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 4.0x during FY24, from 22.4x 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 1.4% during FY24, from 15.3% 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 declined and down at 4.3% during FY24, from 20.2% 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 1.2% during FY24, from 7.4% 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	1.6	1.8
Debtors’ Days	Days	1,654	1,729
Interest coverage	x	22.4	4.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	1.2
Return on equity	%	15.3	1.4
Return on capital employed	%	20.2	4.3

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

SHARDA CROPCHEM Share Price Performance

Over the last one year, SHARDA CROPCHEM share price has moved down from Rs 544.2 to Rs 502.3, registering a loss of Rs 41.9 or around 7.7%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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