SOLITAIR MAC 2022-23 Annual Report Analysis

Tue, 20 Jun

SOLITAIR MAC has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SOLITAIR MAC Income Statement Analysis

• Operating income during the year rose 37.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 36.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.3% in FY23 as against 13.4% in FY22.
• Depreciation charges decreased by 1.2% and finance costs increased by 10.7% YoY, respectively.
• Other income grew by 12.4% YoY.
• Net profit for the year grew by 51.0% YoY.
• Net profit margins during the year grew from 7.8% in FY22 to 8.5% in FY23.

SOLITAIR MAC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	136	187	37.5%
Other income	Rs m	3	3	12.4%
Total Revenues	Rs m	139	190	37.0%
Gross profit	Rs m	18	25	36.4%
Depreciation	Rs m	6	6	-1.2%
Interest	Rs m	1	2	10.7%
Profit before tax	Rs m	14	21	49.1%
Tax	Rs m	4	5	43.0%
Profit after tax	Rs m	11	16	51.0%
Gross profit margin	%	13.4	13.3
Effective tax rate	%	25.2	24.2
Net profit margin	%	7.8	8.5

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SOLITAIR MAC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 42 million as compared to Rs 32 million in FY22, thereby witnessing an increase of 31.4%.
• Current assets rose 6% and stood at Rs 111 million, while fixed assets rose 10% and stood at Rs 105 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 216 million as against Rs 200 million during FY22, thereby witnessing a growth of 8%.

SOLITAIR MAC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	159	170	7.0
Current Liabilities	Rs m	32	42	31.4
Long-term Debt	Rs m	5	0	-100.0
Total Liabilities	Rs m	200	216	8.0
Current assets	Rs m	105	111	5.8
Fixed Assets	Rs m	95	105	10.2
Total Assets	Rs m	200	216	8.0

SOLITAIR MAC Cash Flow Statement Analysis

• SOLITAIR MAC's cash flow from operating activities (CFO) during FY23 stood at Rs 24 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -16 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 million from the Rs -3 million net cash flows seen during FY22.

SOLITAIR MAC Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-7	24	-
Cash Flow from Investing Activities	Rs m	4	-16	-
Cash Flow from Financing Activities	Rs m	0	-6	-
Net Cash Flow	Rs m	-3	2	-

Current Valuations for SOLITAIR MAC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 60.4, stands at 17.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 11.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	29.9	41.1
TTM Earnings per share	Rs	2.3	3.5
Diluted earnings per share	Rs	2.3	3.5
Price to Cash Flow	x	11.8	11.3
TTM P/E ratio	x	18.3	17.2
Price / Book Value ratio	x	1.3	1.4
Market Cap	Rs m	203	245
Dividends per share (Unadj.)	Rs	1.2	1.5

Ratio Analysis for SOLITAIR MAC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.6x during FY23, from 3.3x during FY22. 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 14.6x during FY23, from 11.1x during FY22. 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 9.4% during FY23, from 6.6% during FY23. 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 13.3% during FY23, from 9.5% during FY22. 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 improved and stood at 8.1% during FY23, from 6.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	3.3	2.6
Debtors’ Days	Days	434	783
Interest coverage	x	11.1	14.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	8.1
Return on equity	%	6.6	9.4
Return on capital employed	%	9.5	13.3

To see how SOLITAIR MAC has performed over the last 5 years, please visit here.

SOLITAIR MAC Share Price Performance

Over the last one year, SOLITAIR MAC share price has moved up from Rs 54.6 to Rs 60.4, registering a gain of Rs 5.8 or around 10.5%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 39,789.8 (down 0.1%). Over the last one year it has moved up from 24,689.7 to 39,789.8, a gain of 15,100 points (up 61.2%).

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for SOLITAIR MAC and quarterly results for SOLITAIR MAC)