SHEELA FOAM 2023-24 Annual Report Analysis

Thu, 27 Jun

SHEELA FOAM 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.

SHEELA FOAM Income Statement Analysis

• Operating income during the year rose 3.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.8% in FY24 as against 10.4% in FY23.
• Depreciation charges increased by 29.2% and finance costs increased by 225.7% YoY, respectively.
• Other income grew by 36.8% YoY.
• Net profit for the year declined by 3.2% YoY.
• Net profit margins during the year declined from 7.0% in FY23 to 6.5% in FY24.

SHEELA FOAM Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,733	29,823	3.8%
Other income	Rs m	856	1,171	36.8%
Total Revenues	Rs m	29,589	30,994	4.7%
Gross profit	Rs m	2,982	3,232	8.4%
Depreciation	Rs m	896	1,158	29.2%
Interest	Rs m	211	686	225.7%
Profit before tax	Rs m	2,731	2,559	-6.3%
Tax	Rs m	723	614	-15.0%
Profit after tax	Rs m	2,008	1,945	-3.2%
Gross profit margin	%	10.4	10.8
Effective tax rate	%	26.5	24.0
Net profit margin	%	7.0	6.5

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SHEELA FOAM Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 11 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 65.5%.
• Long-term debt stood at Rs 9 billion as compared to Rs 3 billion during FY23, a growth of 232.8%.
• Current assets fell 39% and stood at Rs 9 billion, while fixed assets rose 218% and stood at Rs 45 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 53 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 88%.

SHEELA FOAM Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,982	29,178	82.6
Current Liabilities	Rs m	6,822	11,292	65.5
Long-term Debt	Rs m	2,838	9,446	232.8
Total Liabilities	Rs m	28,365	53,308	87.9
Current assets	Rs m	14,333	8,752	-38.9
Fixed Assets	Rs m	14,033	44,557	217.5
Total Assets	Rs m	28,365	53,308	87.9

SHEELA FOAM Cash Flow Statement Analysis

• SHEELA FOAM's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 86.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -23 billion, an improvement of 724.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 19 billion, an improvement of 3,204% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 18 million from the Rs 15 million net cash flows seen during FY23.

SHEELA FOAM 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	2,176	4,060	86.6%
Cash Flow from Investing Activities	Rs m	-2,740	-22,585	-
Cash Flow from Financing Activities	Rs m	561	18,543	3,204.2%
Net Cash Flow	Rs m	15	18	19.9%

Current Valuations for SHEELA FOAM

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 17.9, an decline from the EPS of Rs 20.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 935.0, stands at 52.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 40.0 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	294.5	274.4
TTM Earnings per share	Rs	20.6	17.9
Diluted earnings per share	Rs	18.5	17.9
Price to Cash Flow	x	37.3	40.0
TTM P/E ratio	x	53.9	52.2
Price / Book Value ratio	x	15.1	4.2
Market Cap	Rs m	241,938	123,969
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHEELA FOAM

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY24, from 2.1x 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 4.7x during FY24, from 14.0x 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 6.7% 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 8.4% during FY24, from 15.6% 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 4.9% during FY24, from 7.8% 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	2.1	0.8
Debtors’ Days	Days	4	4
Interest coverage	x	14.0	4.7
Debt to equity ratio	x	0.2	0.3
Return on assets	%	7.8	4.9
Return on equity	%	12.6	6.7
Return on capital employed	%	15.6	8.4

To see how SHEELA FOAM has performed over the last 5 years, please visit here.

SHEELA FOAM Share Price Performance

Over the last one year, SHEELA FOAM share price has moved down from Rs 1,171.0 to Rs 935.0, registering a loss of Rs 236.0 or around 20.2%.

Meanwhile, the S&P BSE FMCG Index is trading at Rs 20,477.6 (up 0.0%). Over the last one year it has moved up from 18,493.6 to 20,477.6, a gain of 1,984 points (up 10.7%).

Overall, the S&P BSE SENSEX is up 24.8% over the year.

(To know more, check out historical annual results for SHEELA FOAM and quarterly results for SHEELA FOAM)