SHEMAROO ENT. 2023-24 Annual Report Analysis

Wed, 7 Aug

SHEMAROO ENT. 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.

SHEMAROO ENT. Income Statement Analysis

• Operating income during the year rose 27.1% 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 0.0% in FY24 as against 8.5% in FY23.
• Depreciation charges increased by 7.0% and finance costs increased by 18.5% YoY, respectively.
• Other income grew by 42.7% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 1.7% in FY23 to 5.6% in FY24.

SHEMAROO ENT. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,566	7,072	27.1%
Other income	Rs m	34	49	42.7%
Total Revenues	Rs m	5,600	7,121	27.2%
Gross profit	Rs m	473	-3	NA
Depreciation	Rs m	52	56	7.0%
Interest	Rs m	307	363	18.5%
Profit before tax	Rs m	148	-373	NA
Tax	Rs m	53	26	-50.0%
Profit after tax	Rs m	96	-399	NA
Gross profit margin	%	8.5	0.0
Effective tax rate	%	35.6	-7.1
Net profit margin	%	1.7	-5.6

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SHEMAROO ENT. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 5.9%.
• Long-term debt down at Rs 70 million as compared to Rs 126 million during FY23, a fall of 44.4%.
• Current assets fell 4% and stood at Rs 10 billion, while fixed assets rose 24% and stood at Rs 516 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 10 billion during FY23, thereby witnessing a fall of 2%.

SHEMAROO ENT. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,900	5,499	-6.8
Current Liabilities	Rs m	4,341	4,597	5.9
Long-term Debt	Rs m	126	70	-44.4
Total Liabilities	Rs m	10,357	10,107	-2.4
Current assets	Rs m	9,941	9,590	-3.5
Fixed Assets	Rs m	416	516	24.1
Total Assets	Rs m	10,357	10,107	-2.4

SHEMAROO ENT. Cash Flow Statement Analysis

• SHEMAROO ENT.'s cash flow from operating activities (CFO) during FY24 stood at Rs 256 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -75 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -188 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -7 million from the Rs -7 million net cash flows seen during FY23.

SHEMAROO ENT. 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	-172	256	-
Cash Flow from Investing Activities	Rs m	-190	-75	-
Cash Flow from Financing Activities	Rs m	356	-188	-
Net Cash Flow	Rs m	-7	-7	-

Current Valuations for SHEMAROO ENT.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -14.7, an decline from the EPS of Rs 3.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 150.0, stands at -7.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at -13.8 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	204.8	259.7
TTM Earnings per share	Rs	3.5	-14.7
Diluted earnings per share	Rs	3.5	-14.6
Price to Cash Flow	x	19.6	-13.8
TTM P/E ratio	x	30.3	-7.3
Price / Book Value ratio	x	0.7	0.9
Market Cap	Rs m	4,056	4,729
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHEMAROO ENT.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.1x during FY24, from 2.3x 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 0.0x during FY24, from 1.5x 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 -7.3% during FY24, from 1.6% 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 -0.2% during FY24, from 7.5% 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 -0.4% during FY24, from 3.9% 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	2.3	2.1
Debtors’ Days	Days	831	750
Interest coverage	x	1.5	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	-0.4
Return on equity	%	1.6	-7.3
Return on capital employed	%	7.5	-0.2

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

SHEMAROO ENT. Share Price Performance

Over the last one year, SHEMAROO ENT. share price has moved up from Rs 149.9 to Rs 150.0, registering a gain of Rs 0.1 or around 0.1%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 18,349.8 (up 1.4%). Over the last one year it has moved up from 13,950.8 to 18,349.8, a gain of 4,399 points (up 31.5%).

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for SHEMAROO ENT. and quarterly results for SHEMAROO ENT.)