SIGNPOST INDIA LTD. 2023-24 Annual Report Analysis

Tue, 29 Oct

SIGNPOST INDIA LTD. 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.

SIGNPOST INDIA LTD. Income Statement Analysis

• Operating income during the year rose 15.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.2% in FY24 as against 21.1% in FY23.
• Depreciation charges increased by 6.9% and finance costs increased by 17.4% YoY, respectively.
• Other income grew by 70.8% YoY.
• Net profit for the year grew by 25.0% YoY.
• Net profit margins during the year grew from 10.5% in FY23 to 11.4% in FY24.

SIGNPOST INDIA LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,370	3,874	15.0%
Other income	Rs m	50	85	70.8%
Total Revenues	Rs m	3,420	3,959	15.8%
Gross profit	Rs m	711	859	20.8%
Depreciation	Rs m	160	171	6.9%
Interest	Rs m	98	115	17.4%
Profit before tax	Rs m	502	657	30.8%
Tax	Rs m	150	217	44.5%
Profit after tax	Rs m	353	441	25.0%
Gross profit margin	%	21.1	22.2
Effective tax rate	%	29.8	33.0
Net profit margin	%	10.5	11.4

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SIGNPOST INDIA LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 6.1%.
• Long-term debt stood at Rs 792 million as compared to Rs 363 million during FY23, a growth of 118.4%.
• Current assets fell 3% and stood at Rs 2 billion, while fixed assets rose 73% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 26%.

SIGNPOST INDIA LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,476	1,893	28.2
Current Liabilities	Rs m	1,894	2,009	6.1
Long-term Debt	Rs m	363	792	118.4
Total Liabilities	Rs m	3,760	4,720	25.5
Current assets	Rs m	2,343	2,265	-3.3
Fixed Assets	Rs m	1,418	2,454	73.1
Total Assets	Rs m	3,760	4,720	25.5

SIGNPOST INDIA LTD. Cash Flow Statement Analysis

• SIGNPOST INDIA LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 636 million, an improvement of 667.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 127.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 447 million, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 74 million from the Rs -20 million net cash flows seen during FY23.

SIGNPOST INDIA LTD. 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	83	636	667.6%
Cash Flow from Investing Activities	Rs m	-443	-1,009	-
Cash Flow from Financing Activities	Rs m	340	447	31.3%
Net Cash Flow	Rs m	-20	74	-

Current Valuations for SIGNPOST INDIA LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 6.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 221.3, stands at 26.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 33.3 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	63.0	72.5
TTM Earnings per share	Rs	6.6	8.2
Diluted earnings per share	Rs	6.6	8.2
Price to Cash Flow	x	0.0	33.3
TTM P/E ratio	x	0.0	26.8
Price / Book Value ratio	x	0.0	10.8
Market Cap	Rs m	0	20,397
Dividends per share (Unadj.)	Rs	1.0	0.5

Ratio Analysis for SIGNPOST INDIA LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.2x 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 6.7x during FY24, from 6.1x 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 23.3% during FY24, from 23.9% 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 28.8% during FY24, from 32.6% 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 11.8% during FY24, from 12.0% 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	1.2	1.1
Debtors’ Days	Days	1,890	1,454
Interest coverage	x	6.1	6.7
Debt to equity ratio	x	0.2	0.4
Return on assets	%	12.0	11.8
Return on equity	%	23.9	23.3
Return on capital employed	%	32.6	28.8

To see how SIGNPOST INDIA LTD. has performed over the last 5 years, please visit here.

SIGNPOST INDIA LTD. Share Price Performance

Over the last one year, SIGNPOST INDIA LTD. share price has moved up from Rs 0.0 to Rs 221.3, registering a gain of Rs 221.3 or around 0.0%.

Overall, the S&P BSE SENSEX is up 24.7% over the year.

(To know more, check out historical annual results for SIGNPOST INDIA LTD. and quarterly results for SIGNPOST INDIA LTD.)