SUKHJIT STARCH 2023-24 Annual Report Analysis

Wed, 24 Jul

SUKHJIT STARCH 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.

SUKHJIT STARCH Income Statement Analysis

• Operating income during the year fell 4.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY24 as against 10.2% in FY23.
• Depreciation charges decreased by 2.3% and finance costs increased by 16.8% YoY, respectively.
• Other income grew by 218.2% YoY.
• Net profit for the year declined by 21.2% YoY.
• Net profit margins during the year declined from 4.4% in FY23 to 3.6% in FY24.

SUKHJIT STARCH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	14,466	13,753	-4.9%
Other income	Rs m	30	97	218.2%
Total Revenues	Rs m	14,496	13,850	-4.5%
Gross profit	Rs m	1,471	1,280	-13.0%
Depreciation	Rs m	356	348	-2.3%
Interest	Rs m	283	330	16.8%
Profit before tax	Rs m	862	699	-19.0%
Tax	Rs m	229	199	-12.9%
Profit after tax	Rs m	634	500	-21.2%
Gross profit margin	%	10.2	9.3
Effective tax rate	%	26.5	28.5
Net profit margin	%	4.4	3.6

Don't Miss: Key Information for Long-term Investors

SUKHJIT STARCH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 8.9%.
• Long-term debt down at Rs 858 million as compared to Rs 1 billion during FY23, a fall of 22.5%.
• Current assets rose 10% and stood at Rs 5 billion, while fixed assets rose 1% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 10 billion during FY23, thereby witnessing a growth of 5%.

SUKHJIT STARCH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,655	5,026	8.0
Current Liabilities	Rs m	3,537	3,853	8.9
Long-term Debt	Rs m	1,106	858	-22.5
Total Liabilities	Rs m	10,211	10,742	5.2
Current assets	Rs m	4,426	4,882	10.3
Fixed Assets	Rs m	5,785	5,860	1.3
Total Assets	Rs m	10,211	10,742	5.2

SUKHJIT STARCH Cash Flow Statement Analysis

• SUKHJIT STARCH's cash flow from operating activities (CFO) during FY24 stood at Rs 777 million, an improvement of 89.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -392 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -356 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 30 million from the Rs 5 million net cash flows seen during FY23.

SUKHJIT STARCH 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	410	777	89.8%
Cash Flow from Investing Activities	Rs m	-429	-392	-
Cash Flow from Financing Activities	Rs m	24	-356	-
Net Cash Flow	Rs m	5	30	512.2%

Current Valuations for SUKHJIT STARCH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.0, an decline from the EPS of Rs 40.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 490.5, stands at 15.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	926.1	880.5
TTM Earnings per share	Rs	40.6	32.0
Diluted earnings per share	Rs	40.6	32.0
Price to Cash Flow	x	5.9	9.0
TTM P/E ratio	x	9.3	15.3
Price / Book Value ratio	x	1.6	1.5
Market Cap	Rs m	7,631	7,599
Dividends per share (Unadj.)	Rs	8.0	8.0

Ratio Analysis for SUKHJIT STARCH

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.3x 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 deteriorated and stood at 3.1x during FY24, from 4.0x 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 9.9% during FY24, from 13.6% 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 17.5% during FY24, from 19.9% 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 7.7% during FY24, from 9.0% 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	1.3	1.3
Debtors’ Days	Days	204	211
Interest coverage	x	4.0	3.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	9.0	7.7
Return on equity	%	13.6	9.9
Return on capital employed	%	19.9	17.5

To see how SUKHJIT STARCH has performed over the last 5 years, please visit here.

SUKHJIT STARCH Share Price Performance

Over the last one year, SUKHJIT STARCH share price has moved up from Rs 410.7 to Rs 490.5, registering a gain of Rs 79.8 or around 19.4%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for SUKHJIT STARCH and quarterly results for SUKHJIT STARCH)