SHARDA MOTOR 2023-24 Annual Report Analysis

Thu, 3 Oct

SHARDA MOTOR 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.

SHARDA MOTOR Income Statement Analysis

• Operating income during the year rose 4.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.9% in FY24 as against 10.5% in FY23.
• Depreciation charges increased by 13.6% and finance costs increased by 15.5% YoY, respectively.
• Other income grew by 121.8% YoY.
• Net profit for the year grew by 43.8% YoY.
• Net profit margins during the year grew from 7.7% in FY23 to 10.7% in FY24.

SHARDA MOTOR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,999	28,093	4.0%
Other income	Rs m	417	926	121.8%
Total Revenues	Rs m	27,417	29,019	5.8%
Gross profit	Rs m	2,847	3,614	27.0%
Depreciation	Rs m	463	526	13.6%
Interest	Rs m	19	22	15.5%
Profit before tax	Rs m	2,782	3,992	43.5%
Tax	Rs m	699	996	42.6%
Profit after tax	Rs m	2,083	2,996	43.8%
Gross profit margin	%	10.5	12.9
Effective tax rate	%	25.1	25.0
Net profit margin	%	7.7	10.7

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SHARDA MOTOR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 14.6%.
• Current assets rose 2% and stood at Rs 11 billion, while fixed assets rose 66% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 19 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 21%.

SHARDA MOTOR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,579	10,059	32.7
Current Liabilities	Rs m	5,987	6,862	14.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	16,042	19,421	21.1
Current assets	Rs m	11,199	11,400	1.8
Fixed Assets	Rs m	4,843	8,022	65.6
Total Assets	Rs m	16,042	19,421	21.1

SHARDA MOTOR Cash Flow Statement Analysis

• SHARDA MOTOR's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -542 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs -361 million net cash flows seen during FY23.

SHARDA MOTOR 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	-2,003	3,696	-
Cash Flow from Investing Activities	Rs m	1,905	-2,152	-
Cash Flow from Financing Activities	Rs m	-266	-542	-
Net Cash Flow	Rs m	-361	1,011	-

Current Valuations for SHARDA MOTOR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 100.8, an improvement from the EPS of Rs 70.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,392.0, stands at 21.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 9.0 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	908.2	944.9
TTM Earnings per share	Rs	70.1	100.8
Diluted earnings per share	Rs	72.6	104.4
Price to Cash Flow	x	6.3	9.0
TTM P/E ratio	x	7.8	21.7
Price / Book Value ratio	x	2.9	3.2
Market Cap	Rs m	22,299	31,772
Dividends per share (Unadj.)	Rs	17.3	9.9

Ratio Analysis for SHARDA MOTOR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY24, from 1.9x 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 181.8x during FY24, from 146.5x 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 29.8% during FY24, from 27.5% 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 39.9% during FY24, from 37.0% 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 15.5% during FY24, from 13.1% 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	1.9	1.7
Debtors’ Days	Days	448	295
Interest coverage	x	146.5	181.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.1	15.5
Return on equity	%	27.5	29.8
Return on capital employed	%	37.0	39.9

To see how SHARDA MOTOR has performed over the last 5 years, please visit here.

SHARDA MOTOR Share Price Performance

Over the last one year, SHARDA MOTOR share price has moved up from Rs 974.7 to Rs 2,392.0, registering a gain of Rs 1,417.3 or around 145.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 60,466.1 (down 1.3%). Over the last one year it has moved up from 36,184.1 to 60,466.1, a gain of 24,282 points (up 67.1%).

Overall, the S&P BSE SENSEX is up 27.6% over the year.

(To know more, check out historical annual results for SHARDA MOTOR and quarterly results for SHARDA MOTOR)