SMC GLOBAL 2023-24 Annual Report Analysis

Mon, 3 Jun

SMC GLOBAL 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.

SMC GLOBAL Income Statement Analysis

• Operating income during the year rose 35.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 56.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 25.8% in FY24 as against 22.3% in FY23.
• Depreciation charges increased by 41.5% and finance costs increased by 72.6% YoY, respectively.
• Other income grew by 114.5% YoY.
• Net profit for the year grew by 56.4% YoY.
• Net profit margins during the year grew from 9.9% in FY23 to 11.5% in FY24.

SMC GLOBAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	12,116	16,385	35.2%
Other income	Rs m	41	88	114.5%
Total Revenues	Rs m	12,157	16,473	35.5%
Gross profit	Rs m	2,706	4,231	56.4%
Depreciation	Rs m	227	321	41.5%
Interest	Rs m	900	1,553	72.6%
Profit before tax	Rs m	1,620	2,445	51.0%
Tax	Rs m	416	562	35.3%
Profit after tax	Rs m	1,204	1,883	56.4%
Gross profit margin	%	22.3	25.8
Effective tax rate	%	25.7	23.0
Net profit margin	%	9.9	11.5

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SMC GLOBAL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 28 billion as compared to Rs 18 billion in FY23, thereby witnessing an increase of 51.4%.
• Long-term debt stood at Rs 9 billion as compared to Rs 5 billion during FY23, a growth of 59.7%.
• Current assets rose 43% and stood at Rs 43 billion, while fixed assets rose 43% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 48 billion as against Rs 33 billion during FY23, thereby witnessing a growth of 43%.

SMC GLOBAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,327	10,957	17.5
Current Liabilities	Rs m	18,472	27,970	51.4
Long-term Debt	Rs m	5,414	8,645	59.7
Total Liabilities	Rs m	33,227	47,631	43.3
Current assets	Rs m	30,175	43,274	43.4
Fixed Assets	Rs m	3,028	4,333	43.1
Total Assets	Rs m	33,227	47,631	43.3

SMC GLOBAL Cash Flow Statement Analysis

• SMC GLOBAL's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -287 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 37% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 957 million from the Rs -598 million net cash flows seen during FY23.

SMC GLOBAL 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	-2,601	-1,927	-
Cash Flow from Investing Activities	Rs m	-310	-287	-
Cash Flow from Financing Activities	Rs m	2,313	3,170	37.1%
Net Cash Flow	Rs m	-598	957	-

Current Valuations for SMC GLOBAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.0, an improvement from the EPS of Rs 11.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 168.7, stands at 9.4 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 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 4.9 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	115.7	156.5
TTM Earnings per share	Rs	11.5	18.0
Diluted earnings per share	Rs	11.5	18.0
Price to Cash Flow	x	5.2	4.9
TTM P/E ratio	x	6.2	9.4
Price / Book Value ratio	x	0.9	1.0
Market Cap	Rs m	8,559	10,784
Dividends per share (Unadj.)	Rs	2.4	2.4

Ratio Analysis for SMC GLOBAL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY24, from 1.6x 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 deteriorated and stood at 2.6x during FY24, from 2.8x 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 17.2% during FY24, from 12.9% 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 17.1% 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 7.2% during FY24, from 6.3% 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	1.6	1.5
Debtors’ Days	Days	1,176	1,184
Interest coverage	x	2.8	2.6
Debt to equity ratio	x	0.6	0.8
Return on assets	%	6.3	7.2
Return on equity	%	12.9	17.2
Return on capital employed	%	17.1	20.4

To see how SMC GLOBAL has performed over the last 5 years, please visit here.

SMC GLOBAL Share Price Performance

Over the last one year, SMC GLOBAL share price has moved up from Rs 73.9 to Rs 168.7, registering a gain of Rs 94.8 or around 128.4%.

Overall, the S&P BSE SENSEX is up 20.6% over the year.

(To know more, check out historical annual results for SMC GLOBAL and quarterly results for SMC GLOBAL)