SAKTHI SUGARS 2023-24 Annual Report Analysis

Thu, 29 Aug

SAKTHI SUGARS 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.

SAKTHI SUGARS Income Statement Analysis

• Operating income during the year fell 0.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 40.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.0% in FY24 as against 46.9% in FY23.
• Depreciation charges decreased by 0.4% and finance costs increased by 0.8% YoY, respectively.
• Other income declined by 10.1% YoY.
• Net profit for the year declined by 67.6% YoY.
• Net profit margins during the year declined from 34.9% in FY23 to 11.4% in FY24.

SAKTHI SUGARS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,757	10,693	-0.6%
Other income	Rs m	147	133	-10.1%
Total Revenues	Rs m	10,905	10,825	-0.7%
Gross profit	Rs m	5,041	2,990	-40.7%
Depreciation	Rs m	372	371	-0.4%
Interest	Rs m	1,080	1,089	0.8%
Profit before tax	Rs m	3,736	1,662	-55.5%
Tax	Rs m	-22	444	NA
Profit after tax	Rs m	3,759	1,218	-67.6%
Gross profit margin	%	46.9	28.0
Effective tax rate	%	-0.6	26.7
Net profit margin	%	34.9	11.4

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

SAKTHI SUGARS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 7 billion as compared to Rs 12 billion in FY23, thereby witnessing an decrease of -39.9%.
• Long-term debt stood at Rs 7 billion as compared to Rs 5 billion during FY23, a growth of 33.9%.
• Current assets fell 14% and stood at Rs 5 billion, while fixed assets fell 3% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 17 billion during FY23, thereby witnessing a fall of 7%.

SAKTHI SUGARS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	-108	1,179	NA
Current Liabilities	Rs m	11,568	6,948	-39.9
Long-term Debt	Rs m	5,036	6,744	33.9
Total Liabilities	Rs m	16,660	15,479	-7.1
Current assets	Rs m	6,259	5,400	-13.7
Fixed Assets	Rs m	10,402	10,079	-3.1
Total Assets	Rs m	16,660	15,479	-7.1

SAKTHI SUGARS Cash Flow Statement Analysis

• SAKTHI SUGARS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 6.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 508 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion, an improvement of 31% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 million from the Rs -106 million net cash flows seen during FY23.

SAKTHI SUGARS 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	1,067	1,139	6.8%
Cash Flow from Investing Activities	Rs m	1,208	508	-57.9%
Cash Flow from Financing Activities	Rs m	-2,380	-1,651	-
Net Cash Flow	Rs m	-106	-4	-

Current Valuations for SAKTHI SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 31.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 39.3, stands at 4.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 2.5 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	90.5	90.0
TTM Earnings per share	Rs	31.6	10.2
Diluted earnings per share	Rs	31.6	10.2
Price to Cash Flow	x	0.6	2.5
TTM P/E ratio	x	0.6	4.9
Price / Book Value ratio	x	-26.3	3.3
Market Cap	Rs m	2,849	3,939
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SAKTHI SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY24, from 0.5x 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 2.5x during FY24, from 4.5x 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 improved and stood at 103.3% during FY24, from -3,471.2% 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 34.7% during FY24, from 97.7% 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 14.9% during FY24, from 29.0% 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	0.5	0.8
Debtors’ Days	Days	27	24
Interest coverage	x	4.5	2.5
Debt to equity ratio	x	-46.5	5.7
Return on assets	%	29.0	14.9
Return on equity	%	-3,471.2	103.3
Return on capital employed	%	97.7	34.7

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

SAKTHI SUGARS Share Price Performance

Over the last one year, SAKTHI SUGARS share price has moved up from Rs 25.8 to Rs 39.3, registering a gain of Rs 13.5 or around 52.1%.

Overall, the S&P BSE SENSEX is up 25.9% over the year.

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