SUNDARAM BRAKE 2023-24 Annual Report Analysis

Tue, 27 Aug

SUNDARAM BRAKE 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.

SUNDARAM BRAKE Income Statement Analysis

• Operating income during the year fell 0.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 623.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 5.3% in FY24 as against 0.7% in FY23.
• Depreciation charges increased by 4.5% and finance costs decreased by 12.5% YoY, respectively.
• Other income grew by 18.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.3% in FY23 to 2.9% in FY24.

SUNDARAM BRAKE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,548	3,524	-0.7%
Other income	Rs m	28	33	18.6%
Total Revenues	Rs m	3,576	3,556	-0.6%
Gross profit	Rs m	26	187	623.7%
Depreciation	Rs m	61	64	4.5%
Interest	Rs m	46	41	-12.5%
Profit before tax	Rs m	-54	115	NA
Tax	Rs m	-6	15	NA
Profit after tax	Rs m	-48	101	NA
Gross profit margin	%	0.7	5.3
Effective tax rate	%	11.4	12.6
Net profit margin	%	-1.3	2.9

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SUNDARAM BRAKE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 968 million as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -8.6%.
• Long-term debt stood at Rs 50 million as compared to Rs 49 million during FY23, a growth of 1.1%.
• Current assets fell 1% and stood at Rs 1 billion, while fixed assets rose 2% and stood at Rs 761 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 0%.

SUNDARAM BRAKE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	854	951	11.3
Current Liabilities	Rs m	1,059	968	-8.6
Long-term Debt	Rs m	49	50	1.1
Total Liabilities	Rs m	2,061	2,063	0.1
Current assets	Rs m	1,317	1,303	-1.1
Fixed Assets	Rs m	744	761	2.2
Total Assets	Rs m	2,061	2,063	0.1

SUNDARAM BRAKE Cash Flow Statement Analysis

• SUNDARAM BRAKE 's cash flow from operating activities (CFO) during FY24 stood at Rs 152 million, an improvement of 1,269.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -61 million, an improvement of 6.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -90 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 million from the Rs 0 million net cash flows seen during FY23.

SUNDARAM BRAKE 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	11	152	1,269.1%
Cash Flow from Investing Activities	Rs m	-57	-61	-
Cash Flow from Financing Activities	Rs m	46	-90	-
Net Cash Flow	Rs m	0	1	-

Current Valuations for SUNDARAM BRAKE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.7, an improvement from the EPS of Rs -12.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,118.8, stands at 54.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.6 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.8 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	902.9	896.6
TTM Earnings per share	Rs	-12.2	25.7
Diluted earnings per share	Rs	-12.2	25.7
Price to Cash Flow	x	83.9	12.8
TTM P/E ratio	x	-23.3	54.4
Price / Book Value ratio	x	1.6	2.2
Market Cap	Rs m	1,352	2,108
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUNDARAM BRAKE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.2x 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 3.8x during FY24, from -0.2x 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 10.6% during FY24, from -5.6% 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 15.6% during FY24, from -0.8% 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 6.9% during FY24, from -0.1% 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	1.2	1.3
Debtors’ Days	Days	710	716
Interest coverage	x	-0.2	3.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	-0.1	6.9
Return on equity	%	-5.6	10.6
Return on capital employed	%	-0.8	15.6

To see how SUNDARAM BRAKE has performed over the last 5 years, please visit here.

SUNDARAM BRAKE Share Price Performance

Over the last one year, SUNDARAM BRAKE share price has moved up from Rs 518.5 to Rs 1,118.8, registering a gain of Rs 600.3 or around 115.8%.

Overall, the S&P BSE SENSEX is up 24.9% over the year.

(To know more, check out historical annual results for SUNDARAM BRAKE and quarterly results for SUNDARAM BRAKE )