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SANGHVI MOVERS 2023-24 Annual Report Analysis

Fri, 9 Aug

SANGHVI MOVERS 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.

SANGHVI MOVERS Income Statement Analysis

• Operating income during the year rose 35.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 61.6% in FY24 as against 56.4% in FY23.
• Depreciation charges increased by 8.9% and finance costs increased by 49.8% YoY, respectively.
• Other income declined by 5.4% YoY.
• Net profit for the year grew by 67.7% YoY.
• Net profit margins during the year grew from 24.6% in FY23 to 30.4% in FY24.

SANGHVI MOVERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,558	6,185	35.7%
Other income	Rs m	298	282	-5.4%
Total Revenues	Rs m	4,856	6,467	33.2%
Gross profit	Rs m	2,569	3,810	48.3%
Depreciation	Rs m	1,211	1,318	8.9%
Interest	Rs m	167	249	49.8%
Profit before tax	Rs m	1,489	2,524	69.5%
Tax	Rs m	369	645	74.9%
Profit after tax	Rs m	1,121	1,879	67.7%
Gross profit margin	%	56.4	61.6
Effective tax rate	%	24.7	25.5
Net profit margin	%	24.6	30.4

For Investors: Our Big Prediction

SANGHVI MOVERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 1 billion in FY23, thereby witnessing an increase of 39.3%.
• Long-term debt stood at Rs 2 billion as compared to Rs 935 million during FY23, a growth of 71.7%.
• Current assets rose 65% and stood at Rs 4 billion, while fixed assets rose 16% and stood at Rs 11 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 26%.

SANGHVI MOVERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,417	10,121	20.2
Current Liabilities	Rs m	1,446	2,014	39.3
Long-term Debt	Rs m	935	1,606	71.7
Total Liabilities	Rs m	11,267	14,245	26.4
Current assets	Rs m	2,210	3,654	65.3
Fixed Assets	Rs m	9,056	10,521	16.2
Total Assets	Rs m	11,267	14,245	26.4

SANGHVI MOVERS Cash Flow Statement Analysis

• SANGHVI MOVERS's cash flow from operating activities (CFO) during FY24 stood at Rs 3 billion, an improvement of 18.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 45.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 681 million, an improvement of 549% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 271 million from the Rs 51 million net cash flows seen during FY23.

SANGHVI MOVERS 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	2,573	3,045	18.3%
Cash Flow from Investing Activities	Rs m	-2,370	-3,455	-
Cash Flow from Financing Activities	Rs m	-152	681	-
Net Cash Flow	Rs m	51	271	428.5%

Current Valuations for SANGHVI MOVERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.4, an improvement from the EPS of Rs 25.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 835.7, stands at 19.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 5.8 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	105.3	142.9
TTM Earnings per share	Rs	25.9	43.4
Diluted earnings per share	Rs	25.9	43.4
Price to Cash Flow	x	6.5	11.8
TTM P/E ratio	x	13.5	19.4
Price / Book Value ratio	x	1.4	3.7
Market Cap	Rs m	11,796	37,680
Dividends per share (Unadj.)	Rs	4.0	6.0

Ratio Analysis for SANGHVI MOVERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.5x 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 11.1x during FY24, from 9.9x 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 18.6% during FY24, from 13.3% 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 23.6% during FY24, from 17.7% 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 14.9% during FY24, from 11.4% 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	1.5	1.8
Debtors’ Days	Days	1,123	1,057
Interest coverage	x	9.9	11.1
Debt to equity ratio	x	0.1	0.2
Return on assets	%	11.4	14.9
Return on equity	%	13.3	18.6
Return on capital employed	%	17.7	23.6

To see how SANGHVI MOVERS has performed over the last 5 years, please visit here.

SANGHVI MOVERS Share Price Performance

Over the last one year, SANGHVI MOVERS share price has moved up from Rs 680.3 to Rs 835.7, registering a gain of Rs 155.4 or around 22.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 72,412.4 (up 1.2%). Over the last one year it has moved up from 43,553.3 to 72,412.4, a gain of 28,859 points (up 66.3%).

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for SANGHVI MOVERS and quarterly results for SANGHVI MOVERS)