SUNDRAM FASTENERS 2023-24 Annual Report Analysis

Mon, 22 Jul

SUNDRAM FASTENERS 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.

SUNDRAM FASTENERS Income Statement Analysis

• Operating income during the year rose 0.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 3.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.6% in FY24 as against 15.1% in FY23.
• Depreciation charges increased by 7.8% and finance costs decreased by 19.4% YoY, respectively.
• Other income grew by 20.8% YoY.
• Net profit for the year grew by 5.1% YoY.
• Net profit margins during the year grew from 8.8% in FY23 to 9.3% in FY24.

SUNDRAM FASTENERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	56,628	56,663	0.1%
Other income	Rs m	449	542	20.8%
Total Revenues	Rs m	57,076	57,205	0.2%
Gross profit	Rs m	8,535	8,867	3.9%
Depreciation	Rs m	1,980	2,133	7.8%
Interest	Rs m	397	320	-19.4%
Profit before tax	Rs m	6,607	6,955	5.3%
Tax	Rs m	1,603	1,699	6.0%
Profit after tax	Rs m	5,004	5,256	5.1%
Gross profit margin	%	15.1	15.6
Effective tax rate	%	24.3	24.4
Net profit margin	%	8.8	9.3

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SUNDRAM FASTENERS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 13 billion in FY23, thereby witnessing an increase of 0.8%.
• Long-term debt down at Rs 812 million as compared to Rs 1 billion during FY23, a fall of 42.3%.
• Current assets rose 6% and stood at Rs 24 billion, while fixed assets rose 9% and stood at Rs 26 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 50 billion as against Rs 46 billion during FY23, thereby witnessing a growth of 8%.

SUNDRAM FASTENERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	30,157	34,207	13.4
Current Liabilities	Rs m	12,727	12,828	0.8
Long-term Debt	Rs m	1,409	812	-42.3
Total Liabilities	Rs m	46,243	49,880	7.9
Current assets	Rs m	22,487	23,913	6.3
Fixed Assets	Rs m	23,756	25,967	9.3
Total Assets	Rs m	46,243	49,880	7.9

SUNDRAM FASTENERS Cash Flow Statement Analysis

• SUNDRAM FASTENERS's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion, an improvement of 25.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 65.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -350 million from the Rs 211 million net cash flows seen during FY23.

SUNDRAM FASTENERS 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	4,690	5,887	25.5%
Cash Flow from Investing Activities	Rs m	-2,342	-3,877	-
Cash Flow from Financing Activities	Rs m	-2,143	-2,351	-
Net Cash Flow	Rs m	211	-350	-

Current Valuations for SUNDRAM FASTENERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.0, an improvement from the EPS of Rs 23.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,395.0, stands at 55.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.6 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 32.8 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	269.5	269.7
TTM Earnings per share	Rs	23.8	25.0
Diluted earnings per share	Rs	23.8	25.0
Price to Cash Flow	x	29.4	32.8
TTM P/E ratio	x	41.1	55.8
Price / Book Value ratio	x	6.0	7.1
Market Cap	Rs m	179,481	242,399
Dividends per share (Unadj.)	Rs	8.6	6.9

Ratio Analysis for SUNDRAM FASTENERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.8x 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 22.7x during FY24, from 17.6x 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 15.4% during FY24, from 16.6% 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 declined and down at 20.8% during FY24, from 22.2% 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 declined and down at 11.2% during FY24, from 11.7% 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	1.8	1.9
Debtors’ Days	Days	7	8
Interest coverage	x	17.6	22.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.7	11.2
Return on equity	%	16.6	15.4
Return on capital employed	%	22.2	20.8

To see how SUNDRAM FASTENERS has performed over the last 5 years, please visit here.

SUNDRAM FASTENERS Share Price Performance

Over the last one year, SUNDRAM FASTENERS share price has moved up from Rs 1,231.6 to Rs 1,395.0, registering a gain of Rs 163.5 or around 13.3%.

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

(To know more, check out historical annual results for SUNDRAM FASTENERS and quarterly results for SUNDRAM FASTENERS)