SIMBHAOLI SUGARS 2022-23 Annual Report Analysis

Thu, 21 Sep

SIMBHAOLI SUGARS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SIMBHAOLI SUGARS Income Statement Analysis

• Operating income during the year rose 12.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 77.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 0.8% in FY23 as against 4.0% in FY22.
• Depreciation charges decreased by 24.7% and finance costs decreased by 43.8% YoY, respectively.
• Other income grew by 302.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.9% in FY22 to 2.9% in FY23.

SIMBHAOLI SUGARS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	9,491	10,663	12.3%
Other income	Rs m	45	182	302.2%
Total Revenues	Rs m	9,536	10,845	13.7%
Gross profit	Rs m	382	85	-77.7%
Depreciation	Rs m	425	320	-24.7%
Interest	Rs m	453	255	-43.8%
Profit before tax	Rs m	-451	-307	NA
Tax	Rs m	12	2	-86.2%
Profit after tax	Rs m	-463	-308	NA
Gross profit margin	%	4.0	0.8
Effective tax rate	%	-2.7	-0.5
Net profit margin	%	-4.9	-2.9

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SIMBHAOLI SUGARS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 21 billion as compared to Rs 20 billion in FY22, thereby witnessing an increase of 2.5%.
• Long-term debt down at Rs 30 million as compared to Rs 31 million during FY22, a fall of 0.3%.
• Current assets fell 2% and stood at Rs 6 billion, while fixed assets fell 1% and stood at Rs 15 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 21 billion during FY22, thereby witnessing a fall of 1%.

SIMBHAOLI SUGARS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-867	-1,189	NA
Current Liabilities	Rs m	20,454	20,960	2.5
Long-term Debt	Rs m	31	30	-0.3
Total Liabilities	Rs m	21,168	20,880	-1.4
Current assets	Rs m	6,224	6,125	-1.6
Fixed Assets	Rs m	14,944	14,755	-1.3
Total Assets	Rs m	21,168	20,880	-1.4

SIMBHAOLI SUGARS Cash Flow Statement Analysis

• SIMBHAOLI SUGARS's cash flow from operating activities (CFO) during FY23 stood at Rs 69 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -46 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -151 million, an improvement of 81% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -127 million from the Rs -205 million net cash flows seen during FY22.

SIMBHAOLI SUGARS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	723	69	-90.4%
Cash Flow from Investing Activities	Rs m	-113	-46	-
Cash Flow from Financing Activities	Rs m	-815	-151	-
Net Cash Flow	Rs m	-205	-127	-

Current Valuations for SIMBHAOLI SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -7.5, an improvement from the EPS of Rs -11.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 28.3, stands at -4.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -1.0 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at 108.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	229.9	258.3
TTM Earnings per share	Rs	-11.2	-7.5
Diluted earnings per share	Rs	-11.2	-7.5
Price to Cash Flow	x	-24.0	108.3
TTM P/E ratio	x	-2.0	-4.6
Price / Book Value ratio	x	-1.2	-1.0
Market Cap	Rs m	1,066	1,220
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SIMBHAOLI SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.3x during FY23, from 0.3x during FY22. 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 -0.2x during FY23, from 0.0x during FY22. 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 25.9% during FY23, from 53.5% during FY23. 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 4.5% during FY23, from -0.3% during FY22. 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 -0.3% during FY23, from 0.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.3	0.3
Debtors’ Days	Days	219	207
Interest coverage	x	0.0	-0.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.0	-0.3
Return on equity	%	53.5	25.9
Return on capital employed	%	-0.3	4.5

To see how SIMBHAOLI SUGARS has performed over the last 5 years, please visit here.

SIMBHAOLI SUGARS Share Price Performance

Over the last one year, SIMBHAOLI SUGARS share price has moved up from Rs 21.5 to Rs 28.3, registering a gain of Rs 6.9 or around 32.1%.

Overall, the S&P BSE SENSEX is up 10.9% over the year.

(To know more, check out historical annual results for SIMBHAOLI SUGARS and quarterly results for SIMBHAOLI SUGARS)