SHIPPING CORP 2023-24 Annual Report Analysis

Fri, 23 Aug

SHIPPING CORP 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.

SHIPPING CORP Income Statement Analysis

• Operating income during the year fell 12.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.5% in FY24 as against 28.1% in FY23.
• Depreciation charges increased by 18.1% and finance costs decreased by 7.4% YoY, respectively.
• Other income grew by 90.4% YoY.
• Net profit for the year declined by 22.0% YoY.
• Net profit margins during the year declined from 15.0% in FY23 to 13.5% in FY24.

SHIPPING CORP Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	57,940	50,465	-12.9%
Other income	Rs m	1,132	2,155	90.4%
Total Revenues	Rs m	59,072	52,621	-10.9%
Gross profit	Rs m	16,279	14,904	-8.4%
Depreciation	Rs m	7,532	8,894	18.1%
Interest	Rs m	1,849	1,712	-7.4%
Profit before tax	Rs m	8,030	6,453	-19.6%
Tax	Rs m	-671	-337	NA
Profit after tax	Rs m	8,702	6,790	-22.0%
Gross profit margin	%	28.1	29.5
Effective tax rate	%	-8.4	-5.2
Net profit margin	%	15.0	13.5

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

SHIPPING CORP Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 29 billion as compared to Rs 28 billion in FY23, thereby witnessing an increase of 4.4%.
• Long-term debt down at Rs 16 billion as compared to Rs 17 billion during FY23, a fall of 5.6%.
• Current assets rose 36% and stood at Rs 36 billion, while fixed assets fell 3% and stood at Rs 85 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 121 billion as against Rs 114 billion during FY23, thereby witnessing a growth of 6%.

SHIPPING CORP Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	69,023	75,395	9.2
Current Liabilities	Rs m	27,922	29,162	4.4
Long-term Debt	Rs m	16,592	15,656	-5.6
Total Liabilities	Rs m	114,430	120,999	5.7
Current assets	Rs m	26,904	36,489	35.6
Fixed Assets	Rs m	87,526	84,510	-3.4
Total Assets	Rs m	114,430	120,999	5.7

SHIPPING CORP Cash Flow Statement Analysis

• SHIPPING CORP's cash flow from operating activities (CFO) during FY24 stood at Rs 10 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -6 billion, an improvement of 7.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 111% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 billion from the Rs 344 million net cash flows seen during FY23.

SHIPPING CORP 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	14,654	9,941	-32.2%
Cash Flow from Investing Activities	Rs m	-5,194	-5,591	-
Cash Flow from Financing Activities	Rs m	-9,299	1,032	-
Net Cash Flow	Rs m	344	5,242	1,424.2%

Current Valuations for SHIPPING CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.6, an decline from the EPS of Rs 18.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 275.0, stands at 17.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	124.4	108.3
TTM Earnings per share	Rs	18.7	14.6
Diluted earnings per share	Rs	18.7	14.6
Price to Cash Flow	x	2.7	5.5
TTM P/E ratio	x	5.5	17.1
Price / Book Value ratio	x	0.6	1.1
Market Cap	Rs m	43,097	86,196
Dividends per share (Unadj.)	Rs	0.4	0.5

Ratio Analysis for SHIPPING CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x 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 deteriorated and stood at 4.8x during FY24, from 5.3x 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 9.0% during FY24, from 12.6% 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 9.0% during FY24, from 11.5% 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 7.0% during FY24, from 9.2% 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	1.3
Debtors’ Days	Days	641	1,020
Interest coverage	x	5.3	4.8
Debt to equity ratio	x	0.2	0.2
Return on assets	%	9.2	7.0
Return on equity	%	12.6	9.0
Return on capital employed	%	11.5	9.0

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

SHIPPING CORP Share Price Performance

Over the last one year, SHIPPING CORP share price has moved up from Rs 129.1 to Rs 275.0, registering a gain of Rs 146.0 or around 113.1%.

Overall, the S&P BSE SENSEX is up 24.5% over the year.

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