SHANTI EDUCATIONAL INITIATIVES 2023-24 Annual Report Analysis

Mon, 12 Aug

SHANTI EDUCATIONAL INITIATIVES 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.

SHANTI EDUCATIONAL INITIATIVES Income Statement Analysis

• Operating income during the year rose 73.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 372.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.1% in FY24 as against 3.7% in FY23.
• Depreciation charges increased by 92.8% and finance costs decreased by 6.7% YoY, respectively.
• Other income declined by 21.7% YoY.
• Net profit for the year grew by 8.4% YoY.
• Net profit margins during the year declined from 30.6% in FY23 to 19.2% in FY24.

SHANTI EDUCATIONAL INITIATIVES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	110	190	73.4%
Other income	Rs m	48	38	-21.7%
Total Revenues	Rs m	158	228	44.4%
Gross profit	Rs m	4	19	372.1%
Depreciation	Rs m	2	4	92.8%
Interest	Rs m	3	3	-6.7%
Profit before tax	Rs m	47	50	6.0%
Tax	Rs m	14	14	0.0%
Profit after tax	Rs m	34	37	8.4%
Gross profit margin	%	3.7	10.1
Effective tax rate	%	28.7	27.0
Net profit margin	%	30.6	19.2

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

SHANTI EDUCATIONAL INITIATIVES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 55 million as compared to Rs 55 million in FY23, thereby witnessing an increase of 0.1%.
• Long-term debt down at Rs 8 million as compared to Rs 15 million during FY23, a fall of 50.1%.
• Current assets fell 24% and stood at Rs 86 million, while fixed assets rose 9% and stood at Rs 621 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 707 million as against Rs 682 million during FY23, thereby witnessing a growth of 4%.

SHANTI EDUCATIONAL INITIATIVES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	603	637	5.7
Current Liabilities	Rs m	55	55	0.1
Long-term Debt	Rs m	15	8	-50.1
Total Liabilities	Rs m	682	707	3.6
Current assets	Rs m	112	86	-23.7
Fixed Assets	Rs m	570	621	9.0
Total Assets	Rs m	682	707	3.6

SHANTI EDUCATIONAL INITIATIVES Cash Flow Statement Analysis

• SHANTI EDUCATIONAL INITIATIVES's cash flow from operating activities (CFO) during FY24 stood at Rs -11 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 3 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -9 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -17 million from the Rs 10 million net cash flows seen during FY23.

SHANTI EDUCATIONAL INITIATIVES 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	5	-11	-
Cash Flow from Investing Activities	Rs m	15	3	-78.2%
Cash Flow from Financing Activities	Rs m	-9	-9	-
Net Cash Flow	Rs m	10	-17	-

Current Valuations for SHANTI EDUCATIONAL INITIATIVES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.3, an improvement from the EPS of Rs 2.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 149.5, stands at 704.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 37.8 times, while the price to sales ratio stands at 12.6 times.
• The company's price to cash flow (P/CF) ratio stood at 31.9 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	6.8	11.8
TTM Earnings per share	Rs	2.1	2.3
Diluted earnings per share	Rs	0.2	0.2
Price to Cash Flow	x	232.5	31.9
TTM P/E ratio	x	156.9	704.0
Price / Book Value ratio	x	2.2	2.0
Market Cap	Rs m	1,320	1,299
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHANTI EDUCATIONAL INITIATIVES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY24, from 2.0x 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 improved and stood at 19.0x during FY24, from 16.8x 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 5.7% during FY24, from 5.6% 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 improved and stood at 8.2% during FY24, from 8.1% 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 improved and stood at 5.6% during FY24, from 5.4% 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	2.0	1.6
Debtors’ Days	Days	657	295
Interest coverage	x	16.8	19.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.4	5.6
Return on equity	%	5.6	5.7
Return on capital employed	%	8.1	8.2

To see how SHANTI EDUCATIONAL INITIATIVES has performed over the last 5 years, please visit here.

SHANTI EDUCATIONAL INITIATIVES Share Price Performance

Over the last one year, SHANTI EDUCATIONAL INITIATIVES share price has moved up from Rs 70.9 to Rs 149.5, registering a gain of Rs 78.6 or around 110.9%.

Overall, the S&P BSE SENSEX is up 21.4% over the year.

(To know more, check out historical annual results for SHANTI EDUCATIONAL INITIATIVES and quarterly results for SHANTI EDUCATIONAL INITIATIVES)