SIRCA PAINTS INDIA 2023-24 Annual Report Analysis

Thu, 1 Aug

SIRCA PAINTS INDIA 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.

SIRCA PAINTS INDIA Income Statement Analysis

• Operating income during the year rose 16.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 22.0% in FY24 as against 23.0% in FY23.
• Depreciation charges increased by 35.0% and finance costs decreased by 53.5% YoY, respectively.
• Other income grew by 31.3% YoY.
• Net profit for the year grew by 11.6% YoY.
• Net profit margins during the year declined from 17.2% in FY23 to 16.5% in FY24.

SIRCA PAINTS INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,677	3,117	16.4%
Other income	Rs m	48	64	31.3%
Total Revenues	Rs m	2,726	3,181	16.7%
Gross profit	Rs m	617	687	11.3%
Depreciation	Rs m	44	60	35.0%
Interest	Rs m	0	0	-53.5%
Profit before tax	Rs m	621	691	11.2%
Tax	Rs m	160	176	10.2%
Profit after tax	Rs m	461	514	11.6%
Gross profit margin	%	23.0	22.0
Effective tax rate	%	25.8	25.5
Net profit margin	%	17.2	16.5

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SIRCA PAINTS INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 598 million as compared to Rs 619 million in FY23, thereby witnessing an decrease of -3.4%.
• Current assets rose 14% and stood at Rs 3 billion, while fixed assets rose 8% and stood at Rs 675 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 13%.

SIRCA PAINTS INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,655	3,087	16.3
Current Liabilities	Rs m	619	598	-3.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,275	3,685	12.5
Current assets	Rs m	2,649	3,010	13.6
Fixed Assets	Rs m	626	675	7.9
Total Assets	Rs m	3,275	3,685	12.5

SIRCA PAINTS INDIA Cash Flow Statement Analysis

• SIRCA PAINTS INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 324 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -118 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -82 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 123 million from the Rs -148 million net cash flows seen during FY23.

SIRCA PAINTS INDIA 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	-187	324	-
Cash Flow from Investing Activities	Rs m	94	-118	-
Cash Flow from Financing Activities	Rs m	-55	-82	-
Net Cash Flow	Rs m	-148	123	-

Current Valuations for SIRCA PAINTS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.4, an decline from the EPS of Rs 16.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 362.0, stands at 38.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 34.7 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	97.7	56.9
TTM Earnings per share	Rs	16.8	9.4
Diluted earnings per share	Rs	8.4	9.4
Price to Cash Flow	x	34.9	34.7
TTM P/E ratio	x	38.3	38.6
Price / Book Value ratio	x	3.6	6.5
Market Cap	Rs m	9,584	19,934
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for SIRCA PAINTS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.0x during FY24, from 4.3x 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 3,454.3x during FY24, from 1,445.3x 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 16.7% during FY24, from 17.4% 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 22.4% during FY24, from 23.4% 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 14.0% during FY24, from 14.1% 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	4.3	5.0
Debtors’ Days	Days	700	767
Interest coverage	x	1,445.3	3,454.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.1	14.0
Return on equity	%	17.4	16.7
Return on capital employed	%	23.4	22.4

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

SIRCA PAINTS INDIA Share Price Performance

Over the last one year, SIRCA PAINTS INDIA share price has moved down from Rs 381.2 to Rs 362.0, registering a loss of Rs 19.2 or around 5.0%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, check out historical annual results for SIRCA PAINTS INDIA and quarterly results for SIRCA PAINTS INDIA)