SHANKAR LAL RAMPAL 2023-24 Annual Report Analysis

Mon, 2 Sep

SHANKAR LAL RAMPAL 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.

SHANKAR LAL RAMPAL Income Statement Analysis

• Operating income during the year fell 11.0% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 57.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 3.3% in FY24 as against 6.8% in FY23.
• Depreciation charges increased by 27.1% and finance costs decreased by 41.0% YoY, respectively.
• Other income declined by 44.0% YoY.
• Net profit for the year declined by 59.2% YoY.
• Net profit margins during the year declined from 4.9% in FY23 to 2.3% in FY24.

SHANKAR LAL RAMPAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,234	2,877	-11.0%
Other income	Rs m	5	3	-44.0%
Total Revenues	Rs m	3,239	2,880	-11.1%
Gross profit	Rs m	220	94	-57.2%
Depreciation	Rs m	1	1	27.1%
Interest	Rs m	11	7	-41.0%
Profit before tax	Rs m	213	89	-58.0%
Tax	Rs m	54	24	-54.6%
Profit after tax	Rs m	159	65	-59.2%
Gross profit margin	%	6.8	3.3
Effective tax rate	%	25.3	27.4
Net profit margin	%	4.9	2.3

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SHANKAR LAL RAMPAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 93 million as compared to Rs 230 million in FY23, thereby witnessing an decrease of -59.6%.
• Current assets fell 7% and stood at Rs 1 billion, while fixed assets rose 31% and stood at Rs 11 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 1 billion during FY23, thereby witnessing a fall of 7%.

SHANKAR LAL RAMPAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	924	985	6.7
Current Liabilities	Rs m	230	93	-59.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,154	1,078	-6.5
Current assets	Rs m	1,145	1,067	-6.8
Fixed Assets	Rs m	9	11	31.3
Total Assets	Rs m	1,154	1,078	-6.5

SHANKAR LAL RAMPAL Cash Flow Statement Analysis

• SHANKAR LAL RAMPAL's cash flow from operating activities (CFO) during FY24 stood at Rs 59 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 million, an improvement of 21.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -106 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -51 million from the Rs 80 million net cash flows seen during FY23.

SHANKAR LAL RAMPAL 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	146	59	-59.8%
Cash Flow from Investing Activities	Rs m	-3	-4	-
Cash Flow from Financing Activities	Rs m	-63	-106	-
Net Cash Flow	Rs m	80	-51	-

Current Valuations for SHANKAR LAL RAMPAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.0, an decline from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 122.9, stands at 83.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.0 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 119.0 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	50.6	45.0
TTM Earnings per share	Rs	2.5	1.0
Diluted earnings per share	Rs	2.5	1.0
Price to Cash Flow	x	55.8	119.0
TTM P/E ratio	x	64.4	83.0
Price / Book Value ratio	x	8.6	8.0
Market Cap	Rs m	7,932	7,839
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SHANKAR LAL RAMPAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 11.5x during FY24, from 5.0x 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 14.7x during FY24, from 20.3x 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 6.6% during FY24, from 17.2% 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 9.7% during FY24, from 24.3% 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 6.6% during FY24, from 14.7% 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	5.0	11.5
Debtors’ Days	Days	749	729
Interest coverage	x	20.3	14.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.7	6.6
Return on equity	%	17.2	6.6
Return on capital employed	%	24.3	9.7

To see how SHANKAR LAL RAMPAL has performed over the last 5 years, please visit here.

SHANKAR LAL RAMPAL Share Price Performance

Over the last one year, SHANKAR LAL RAMPAL share price has moved up from Rs 107.7 to Rs 122.9, registering a gain of Rs 15.3 or around 14.2%.

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for SHANKAR LAL RAMPAL and quarterly results for SHANKAR LAL RAMPAL)