SIGACHI INDUSTRIES 2023-24 Annual Report Analysis

Thu, 15 Aug

SIGACHI INDUSTRIES 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.

SIGACHI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 32.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 19.2% in FY24 as against 19.4% in FY23.
• Depreciation charges increased by 63.0% and finance costs increased by 80.9% YoY, respectively.
• Other income grew by 75.2% YoY.
• Net profit for the year grew by 31.5% YoY.
• Net profit margins during the year declined from 14.4% in FY23 to 14.4% in FY24.

SIGACHI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,020	3,990	32.1%
Other income	Rs m	67	117	75.2%
Total Revenues	Rs m	3,087	4,106	33.0%
Gross profit	Rs m	587	767	30.5%
Depreciation	Rs m	66	108	63.0%
Interest	Rs m	43	78	80.9%
Profit before tax	Rs m	545	698	28.1%
Tax	Rs m	109	125	14.3%
Profit after tax	Rs m	435	573	31.5%
Gross profit margin	%	19.4	19.2
Effective tax rate	%	20.1	17.9
Net profit margin	%	14.4	14.4

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

SIGACHI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 746 million in FY23, thereby witnessing an increase of 151.7%.
• Long-term debt stood at Rs 266 million as compared to Rs 10 million during FY23, a growth of 2531.7%.
• Current assets rose 77% and stood at Rs 3 billion, while fixed assets rose 94% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 86%.

SIGACHI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,684	3,716	38.5
Current Liabilities	Rs m	746	1,878	151.7
Long-term Debt	Rs m	10	266	2,531.7
Total Liabilities	Rs m	3,737	6,942	85.7
Current assets	Rs m	1,774	3,133	76.6
Fixed Assets	Rs m	1,963	3,809	94.0
Total Assets	Rs m	3,737	6,942	85.7

SIGACHI INDUSTRIES Cash Flow Statement Analysis

• SIGACHI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 129 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 75.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 557% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 243 million from the Rs -366 million net cash flows seen during FY23.

SIGACHI INDUSTRIES 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	290	129	-55.6%
Cash Flow from Investing Activities	Rs m	-919	-1,607	-
Cash Flow from Financing Activities	Rs m	262	1,721	556.7%
Net Cash Flow	Rs m	-366	243	-

Current Valuations for SIGACHI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.7, an decline from the EPS of Rs 14.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 58.5, stands at 32.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 4.8 times.
• The company's price to cash flow (P/CF) ratio stood at 28.5 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	98.3	12.2
TTM Earnings per share	Rs	14.2	1.7
Diluted earnings per share	Rs	1.3	1.7
Price to Cash Flow	x	14.7	28.5
TTM P/E ratio	x	17.0	32.5
Price / Book Value ratio	x	3.3	5.2
Market Cap	Rs m	8,900	19,387
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SIGACHI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 2.4x 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 10.0x during FY24, from 13.7x 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 15.4% during FY24, from 16.2% 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 declined and down at 19.5% during FY24, from 21.8% 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 declined and down at 9.4% during FY24, from 12.8% 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	2.4	1.7
Debtors’ Days	Days	969	1,373
Interest coverage	x	13.7	10.0
Debt to equity ratio	x	0.0	0.1
Return on assets	%	12.8	9.4
Return on equity	%	16.2	15.4
Return on capital employed	%	21.8	19.5

To see how SIGACHI INDUSTRIES has performed over the last 5 years, please visit here.

SIGACHI INDUSTRIES Share Price Performance

Over the last one year, SIGACHI INDUSTRIES share price has moved up from Rs 33.6 to Rs 58.5, registering a gain of Rs 24.9 or around 74.3%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 40,784.6 (down 0.6%). Over the last one year it has moved up from 27,819.2 to 40,784.6, a gain of 12,965 points (up 46.6%).

Overall, the S&P BSE SENSEX is up 21.0% over the year.

(To know more, check out historical annual results for SIGACHI INDUSTRIES and quarterly results for SIGACHI INDUSTRIES)