SJS ENTERPRISES 2023-24 Annual Report Analysis

Mon, 29 Jul

SJS ENTERPRISES 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.

SJS ENTERPRISES Income Statement Analysis

• Operating income during the year rose 45.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 42.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 24.3% in FY24 as against 24.7% in FY23.
• Depreciation charges increased by 66.3% and finance costs increased by 246.1% YoY, respectively.
• Other income declined by 24.1% YoY.
• Net profit for the year grew by 26.9% YoY.
• Net profit margins during the year declined from 15.5% in FY23 to 13.6% in FY24.

SJS ENTERPRISES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,330	6,278	45.0%
Other income	Rs m	102	77	-24.1%
Total Revenues	Rs m	4,432	6,355	43.4%
Gross profit	Rs m	1,069	1,525	42.7%
Depreciation	Rs m	233	387	66.3%
Interest	Rs m	25	88	246.1%
Profit before tax	Rs m	912	1,126	23.6%
Tax	Rs m	239	273	14.1%
Profit after tax	Rs m	673	854	26.9%
Gross profit margin	%	24.7	24.3
Effective tax rate	%	26.2	24.2
Net profit margin	%	15.5	13.6

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SJS ENTERPRISES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 922 million in FY23, thereby witnessing an increase of 56.3%.
• Long-term debt stood at Rs 400 million as compared to Rs 0 million during FY23, a fall of 0.0%.
• Current assets fell 7% and stood at Rs 3 billion, while fixed assets rose 122% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 8 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 46%.

SJS ENTERPRISES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,258	5,419	27.3
Current Liabilities	Rs m	922	1,440	56.3
Long-term Debt	Rs m	0	400	0.0
Total Liabilities	Rs m	5,373	7,853	46.2
Current assets	Rs m	3,158	2,928	-7.3
Fixed Assets	Rs m	2,215	4,925	122.3
Total Assets	Rs m	5,373	7,853	46.2

SJS ENTERPRISES Cash Flow Statement Analysis

• SJS ENTERPRISES's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 24.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 33.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 287 million, an improvement of 493% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 42 million from the Rs -80 million net cash flows seen during FY23.

SJS ENTERPRISES 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	870	1,087	24.9%
Cash Flow from Investing Activities	Rs m	-1,000	-1,333	-
Cash Flow from Financing Activities	Rs m	48	287	493.4%
Net Cash Flow	Rs m	-80	42	-

Current Valuations for SJS ENTERPRISES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.5, an improvement from the EPS of Rs 22.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 838.0, stands at 30.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 14.0 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	142.3	202.3
TTM Earnings per share	Rs	22.1	27.5
Diluted earnings per share	Rs	21.7	27.5
Price to Cash Flow	x	13.6	14.0
TTM P/E ratio	x	18.3	30.5
Price / Book Value ratio	x	3.3	3.2
Market Cap	Rs m	14,038	17,368
Dividends per share (Unadj.)	Rs	0.0	2.0

Ratio Analysis for SJS ENTERPRISES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.0x during FY24, from 3.4x 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 13.8x during FY24, from 36.9x 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 declined and down at 15.8% during FY24, from 15.8% 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 20.9% during FY24, from 22.0% 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 12.0% during FY24, from 13.0% 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	3.4	2.0
Debtors’ Days	Days	76	94
Interest coverage	x	36.9	13.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	13.0	12.0
Return on equity	%	15.8	15.8
Return on capital employed	%	22.0	20.9

To see how SJS ENTERPRISES has performed over the last 5 years, please visit here.

SJS ENTERPRISES Share Price Performance

Over the last one year, SJS ENTERPRISES share price has moved up from Rs 645.4 to Rs 838.0, registering a gain of Rs 192.6 or around 29.8%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for SJS ENTERPRISES and quarterly results for SJS ENTERPRISES)