SELAN EXPLOR 2023-24 Annual Report Analysis

Thu, 24 Oct

SELAN EXPLOR 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.

SELAN EXPLOR Income Statement Analysis

• Operating income during the year rose 40.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 22.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 23.3% in FY24 as against 26.7% in FY23.
• Depreciation charges increased by 32.8% and finance costs decreased by 10.1% YoY, respectively.
• Other income declined by 2.4% YoY.
• Net profit for the year grew by 6.1% YoY.
• Net profit margins during the year declined from 26.2% in FY23 to 19.8% in FY24.

SELAN EXPLOR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,179	1,656	40.4%
Other income	Rs m	116	113	-2.4%
Total Revenues	Rs m	1,295	1,769	36.6%
Gross profit	Rs m	315	386	22.7%
Depreciation	Rs m	24	32	32.8%
Interest	Rs m	4	4	-10.1%
Profit before tax	Rs m	402	464	15.2%
Tax	Rs m	94	136	44.9%
Profit after tax	Rs m	308	327	6.1%
Gross profit margin	%	26.7	23.3
Effective tax rate	%	23.3	29.4
Net profit margin	%	26.2	19.8

Dear Reader: If You Invest in Midcap Stocks, this is for You

SELAN EXPLOR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 300 million as compared to Rs 187 million in FY23, thereby witnessing an increase of 60.2%.
• Current assets fell 26% and stood at Rs 2 billion, while fixed assets rose 63% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 14%.

SELAN EXPLOR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,599	3,924	9.0
Current Liabilities	Rs m	187	300	60.2
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,268	4,846	13.5
Current assets	Rs m	2,357	1,738	-26.3
Fixed Assets	Rs m	1,911	3,108	62.6
Total Assets	Rs m	4,268	4,846	13.5

SELAN EXPLOR Cash Flow Statement Analysis

• SELAN EXPLOR's cash flow from operating activities (CFO) during FY24 stood at Rs 717 million, an improvement of 65.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -691 million, an improvement of 50.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 18 million from the Rs -29 million net cash flows seen during FY23.

SELAN EXPLOR 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	434	717	65.0%
Cash Flow from Investing Activities	Rs m	-460	-691	-
Cash Flow from Financing Activities	Rs m	-4	-7	-
Net Cash Flow	Rs m	-29	18	-

Current Valuations for SELAN EXPLOR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.5, an improvement from the EPS of Rs 20.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 787.9, stands at 26.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 7.2 times.
• The company's price to cash flow (P/CF) ratio stood at 17.8 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	77.6	108.9
TTM Earnings per share	Rs	20.3	21.5
Diluted earnings per share	Rs	20.3	21.5
Price to Cash Flow	x	11.1	17.8
TTM P/E ratio	x	12.0	26.1
Price / Book Value ratio	x	1.1	1.6
Market Cap	Rs m	3,799	6,407
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SELAN EXPLOR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.8x during FY24, from 12.6x 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 121.7x during FY24, from 95.2x 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 8.3% during FY24, from 8.6% 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 improved and stood at 11.9% during FY24, from 11.3% 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 6.8% during FY24, from 7.3% 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	12.6	5.8
Debtors’ Days	Days	583	763
Interest coverage	x	95.2	121.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.3	6.8
Return on equity	%	8.6	8.3
Return on capital employed	%	11.3	11.9

To see how SELAN EXPLOR has performed over the last 5 years, please visit here.

SELAN EXPLOR Share Price Performance

Over the last one year, SELAN EXPLOR share price has moved up from Rs 412.9 to Rs 787.9, registering a gain of Rs 375.1 or around 90.8%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 28,472.8 (up 0.5%). Over the last one year it has moved up from 18,236.6 to 28,472.8, a gain of 10,236 points (up 56.1%).

Overall, the S&P BSE SENSEX is up 24.0% over the year.

(To know more, check out historical annual results for SELAN EXPLOR and quarterly results for SELAN EXPLOR)