SKF INDIA 2023-24 Annual Report Analysis

Mon, 22 Jul

SKF 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.

SKF INDIA Income Statement Analysis

• Operating income during the year rose 6.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.7% in FY24 as against 17.4% in FY23.
• Depreciation charges increased by 11.6% and finance costs decreased by 19.9% YoY, respectively.
• Other income grew by 81.2% YoY.
• Net profit for the year grew by 5.1% YoY.
• Net profit margins during the year declined from 12.2% in FY23 to 12.1% in FY24.

SKF INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	43,049	45,701	6.2%
Other income	Rs m	519	940	81.2%
Total Revenues	Rs m	43,568	46,641	7.1%
Gross profit	Rs m	7,495	7,176	-4.3%
Depreciation	Rs m	668	746	11.6%
Interest	Rs m	15	12	-19.9%
Profit before tax	Rs m	7,330	7,358	0.4%
Tax	Rs m	2,081	1,840	-11.6%
Profit after tax	Rs m	5,249	5,518	5.1%
Gross profit margin	%	17.4	15.7
Effective tax rate	%	28.4	25.0
Net profit margin	%	12.2	12.1

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SKF INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 16.8%.
• Current assets rose 12% and stood at Rs 27 billion, while fixed assets rose 14% and stood at Rs 31 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 59 billion as against Rs 52 billion during FY23, thereby witnessing a growth of 13%.

SKF INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	23,414	26,828	14.6
Current Liabilities	Rs m	7,942	9,280	16.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	52,026	58,794	13.0
Current assets	Rs m	24,486	27,412	12.0
Fixed Assets	Rs m	27,540	31,382	13.9
Total Assets	Rs m	52,026	58,794	13.0

SKF INDIA Cash Flow Statement Analysis

• SKF INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 252.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 6 billion net cash flows seen during FY23.

SKF 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	6,902	6,241	-9.6%
Cash Flow from Investing Activities	Rs m	-449	-1,582	-
Cash Flow from Financing Activities	Rs m	-786	-2,038	-
Net Cash Flow	Rs m	5,668	2,622	-53.7%

Current Valuations for SKF INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 111.7, an improvement from the EPS of Rs 106.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5,634.9, stands at 50.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 6.1 times.
• The company's price to cash flow (P/CF) ratio stood at 37.7 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	871.4	925.1
TTM Earnings per share	Rs	106.3	111.7
Diluted earnings per share	Rs	106.2	111.6
Price to Cash Flow	x	35.6	37.7
TTM P/E ratio	x	40.1	50.5
Price / Book Value ratio	x	8.6	8.8
Market Cap	Rs m	201,435	235,981
Dividends per share (Unadj.)	Rs	40.0	130.0

Ratio Analysis for SKF INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.0x during FY24, from 3.1x 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 609.1x during FY24, from 486.4x 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 20.6% during FY24, from 22.4% 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 27.5% during FY24, from 31.4% 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 9.4% during FY24, from 10.1% 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	3.1	3.0
Debtors’ Days	Days	58	60
Interest coverage	x	486.4	609.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.1	9.4
Return on equity	%	22.4	20.6
Return on capital employed	%	31.4	27.5

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

SKF INDIA Share Price Performance

Over the last one year, SKF INDIA share price has moved up from Rs 5,254.4 to Rs 5,634.9, registering a gain of Rs 380.6 or around 7.2%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

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