SALZER ELEC 2023-24 Annual Report Analysis

Tue, 27 Aug

SALZER ELEC 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.

SALZER ELEC Income Statement Analysis

• Operating income during the year rose 12.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.9% in FY24 as against 9.2% in FY23.
• Depreciation charges increased by 21.1% and finance costs increased by 30.5% YoY, respectively.
• Other income grew by 62.4% YoY.
• Net profit for the year grew by 18.8% YoY.
• Net profit margins during the year grew from 3.8% in FY23 to 4.0% in FY24.

SALZER ELEC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,372	11,663	12.5%
Other income	Rs m	20	32	62.4%
Total Revenues	Rs m	10,392	11,695	12.5%
Gross profit	Rs m	956	1,157	21.0%
Depreciation	Rs m	166	201	21.1%
Interest	Rs m	261	341	30.5%
Profit before tax	Rs m	549	647	17.9%
Tax	Rs m	153	177	15.6%
Profit after tax	Rs m	396	471	18.8%
Gross profit margin	%	9.2	9.9
Effective tax rate	%	27.8	27.3
Net profit margin	%	3.8	4.0

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SALZER ELEC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 5.2%.
• Long-term debt stood at Rs 130 million as compared to Rs 78 million during FY23, a growth of 66.9%.
• Current assets rose 12% and stood at Rs 7 billion, while fixed assets rose 9% and stood at Rs 3 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 11%.

SALZER ELEC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,952	4,714	19.3
Current Liabilities	Rs m	4,472	4,703	5.2
Long-term Debt	Rs m	78	130	66.9
Total Liabilities	Rs m	8,953	9,932	10.9
Current assets	Rs m	6,288	7,035	11.9
Fixed Assets	Rs m	2,662	2,891	8.6
Total Assets	Rs m	8,953	9,932	10.9

SALZER ELEC Cash Flow Statement Analysis

• SALZER ELEC's cash flow from operating activities (CFO) during FY24 stood at Rs 238 million, an improvement of 4.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -459 million, an improvement of 31.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 162 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -53 million from the Rs 56 million net cash flows seen during FY23.

SALZER ELEC 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	227	238	4.8%
Cash Flow from Investing Activities	Rs m	-349	-459	-
Cash Flow from Financing Activities	Rs m	178	162	-9.4%
Net Cash Flow	Rs m	56	-53	-

Current Valuations for SALZER ELEC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 27.1, an improvement from the EPS of Rs 24.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,084.6, stands at 37.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.1 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 14.8 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	641.0	671.1
TTM Earnings per share	Rs	24.5	27.1
Diluted earnings per share	Rs	22.4	26.6
Price to Cash Flow	x	8.0	14.8
TTM P/E ratio	x	11.3	37.1
Price / Book Value ratio	x	1.0	2.1
Market Cap	Rs m	3,980	9,925
Dividends per share (Unadj.)	Rs	2.2	2.5

Ratio Analysis for SALZER ELEC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.4x 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 2.9x during FY24, from 3.1x 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 10.0% during FY24, from 10.0% 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 20.4% during FY24, from 20.1% 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 improved and stood at 8.2% 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	1.4	1.5
Debtors’ Days	Days	1,011	1,044
Interest coverage	x	3.1	2.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.3	8.2
Return on equity	%	10.0	10.0
Return on capital employed	%	20.1	20.4

To see how SALZER ELEC has performed over the last 5 years, please visit here.

SALZER ELEC Share Price Performance

Over the last one year, SALZER ELEC share price has moved up from Rs 404.7 to Rs 1,084.6, registering a gain of Rs 679.9 or around 168.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,142.9 (up 0.9%). Over the last one year it has moved up from 43,991.7 to 74,142.9, a gain of 30,151 points (up 68.5%).

Overall, the S&P BSE SENSEX is up 25.0% over the year.

(To know more, check out historical annual results for SALZER ELEC and quarterly results for SALZER ELEC)