SHERA ENERGY 2023-24 Annual Report Analysis

Tue, 29 Oct

SHERA ENERGY 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.

SHERA ENERGY Income Statement Analysis

• Operating income during the year rose 25.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 38.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.1% in FY24 as against 5.5% in FY23.
• Depreciation charges increased by 11.9% and finance costs increased by 35.0% YoY, respectively.
• Other income declined by 10.2% YoY.
• Net profit for the year grew by 54.2% YoY.
• Net profit margins during the year grew from 1.3% in FY23 to 1.6% in FY24.

SHERA ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	6,964	8,751	25.7%
Other income	Rs m	14	12	-10.2%
Total Revenues	Rs m	6,977	8,763	25.6%
Gross profit	Rs m	386	535	38.6%
Depreciation	Rs m	50	55	11.9%
Interest	Rs m	225	304	35.0%
Profit before tax	Rs m	125	188	50.3%
Tax	Rs m	34	48	39.8%
Profit after tax	Rs m	91	140	54.2%
Gross profit margin	%	5.5	6.1
Effective tax rate	%	27.4	25.5
Net profit margin	%	1.3	1.6

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

SHERA ENERGY 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 21.0%.
• Long-term debt stood at Rs 424 million as compared to Rs 415 million during FY23, a growth of 2.2%.
• Current assets rose 20% and stood at Rs 3 billion, while fixed assets rose 12% and stood at Rs 979 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 18%.

SHERA ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	891	1,069	19.9
Current Liabilities	Rs m	2,187	2,646	21.0
Long-term Debt	Rs m	415	424	2.2
Total Liabilities	Rs m	3,750	4,441	18.4
Current assets	Rs m	2,874	3,462	20.4
Fixed Assets	Rs m	875	979	11.9
Total Assets	Rs m	3,750	4,441	18.4

SHERA ENERGY Cash Flow Statement Analysis

• SHERA ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 382 million, an improvement of 201.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -135 million, an improvement of 433.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -241 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 6 million from the Rs 30 million net cash flows seen during FY23.

SHERA ENERGY 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	127	382	201.4%
Cash Flow from Investing Activities	Rs m	-25	-135	-
Cash Flow from Financing Activities	Rs m	-71	-241	-
Net Cash Flow	Rs m	30	6	-81.6%

Current Valuations for SHERA ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an improvement from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 201.3, stands at 34.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 14.8 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	305.6	384.0
TTM Earnings per share	Rs	4.0	6.2
Diluted earnings per share	Rs	4.0	6.2
Price to Cash Flow	x	0.0	14.8
TTM P/E ratio	x	0.0	34.9
Price / Book Value ratio	x	1.6	2.7
Market Cap	Rs m	1,398	2,894
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHERA ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.3x during FY24, from 1.3x 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 improved and stood at 1.6x during FY24, from 1.6x 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 13.1% during FY24, from 10.2% 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 33.0% during FY24, from 26.8% 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 10.0% during FY24, from 8.4% 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	1.3	1.3
Debtors’ Days	Days	496	476
Interest coverage	x	1.6	1.6
Debt to equity ratio	x	0.5	0.4
Return on assets	%	8.4	10.0
Return on equity	%	10.2	13.1
Return on capital employed	%	26.8	33.0

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

SHERA ENERGY Share Price Performance

Over the last one year, SHERA ENERGY share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 30,805.9 (down 1.4%). Over the last one year it has moved up from 22,303.9 to 30,805.9, a gain of 8,502 points (up 38.1%).

Overall, the NIFTY 50 is down 0.2% over the year.

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