SANGHI INDUSTRIES 2023-24 Annual Report Analysis

Fri, 31 May

SANGHI INDUSTRIES 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.

SANGHI INDUSTRIES Income Statement Analysis

• Operating income during the year fell 11.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 8.6% in FY24 as against 1.5% in FY23.
• Depreciation charges increased by 14.6% and finance costs increased by 19.1% YoY, respectively.
• Other income declined by 35.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 35.1% in FY23 to 54.6% in FY24.

SANGHI INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,284	8,214	-11.5%
Other income	Rs m	195	126	-35.2%
Total Revenues	Rs m	9,478	8,340	-12.0%
Gross profit	Rs m	-136	-706	NA
Depreciation	Rs m	934	1,070	14.6%
Interest	Rs m	2,382	2,836	19.1%
Profit before tax	Rs m	-3,257	-4,486	NA
Tax	Rs m	0	2	0.0
Profit after tax	Rs m	-3,257	-4,488	NA
Gross profit margin	%	-1.5	-8.6
Effective tax rate	%	0.0	0.0
Net profit margin	%	-35.1	-54.6

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SANGHI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 4 billion as compared to Rs 7 billion in FY23, thereby witnessing an decrease of -50.3%.
• Long-term debt stood at Rs 21 billion as compared to Rs 14 billion during FY23, a growth of 54.1%.
• Current assets fell 22% and stood at Rs 4 billion, while fixed assets rose 1% and stood at Rs 32 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 36 billion as against Rs 37 billion during FY23, thereby witnessing a fall of 2%.

SANGHI INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,591	11,108	-28.8
Current Liabilities	Rs m	7,305	3,632	-50.3
Long-term Debt	Rs m	13,507	20,813	54.1
Total Liabilities	Rs m	36,728	35,914	-2.2
Current assets	Rs m	5,023	3,902	-22.3
Fixed Assets	Rs m	31,705	32,011	1.0
Total Assets	Rs m	36,728	35,914	-2.2

SANGHI INDUSTRIES Cash Flow Statement Analysis

• SANGHI INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion, an improvement of 867.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 2 billion, an improvement of 702.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 5,702% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 8 million net cash flows seen during FY23.

SANGHI INDUSTRIES 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	-252	-2,433	-
Cash Flow from Investing Activities	Rs m	292	2,342	702.8%
Cash Flow from Financing Activities	Rs m	-32	1,815	-
Net Cash Flow	Rs m	8	1,724	21,998.7%

Current Valuations for SANGHI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -17.4, an decline from the EPS of Rs -12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 89.6, stands at -5.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.1 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at -8.2 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	35.9	31.8
TTM Earnings per share	Rs	-12.6	-17.4
Diluted earnings per share	Rs	-12.6	-17.4
Price to Cash Flow	x	-7.3	-8.2
TTM P/E ratio	x	-5.2	-5.2
Price / Book Value ratio	x	0.9	2.5
Market Cap	Rs m	14,524	28,186
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SANGHI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY24, from 0.7x 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 -0.6x during FY24, from -0.4x 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 -40.4% during FY24, from -20.9% 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 declined and down at -5.2% during FY24, from -3.0% 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 declined and down at -4.6% during FY24, from -2.4% 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	0.7	1.1
Debtors’ Days	Days	2	0
Interest coverage	x	-0.4	-0.6
Debt to equity ratio	x	0.9	1.9
Return on assets	%	-2.4	-4.6
Return on equity	%	-20.9	-40.4
Return on capital employed	%	-3.0	-5.2

To see how SANGHI INDUSTRIES has performed over the last 5 years, please visit here.

SANGHI INDUSTRIES Share Price Performance

Over the last one year, SANGHI INDUSTRIES share price has moved up from Rs 69.6 to Rs 89.6, registering a gain of Rs 20.0 or around 28.8%.

Overall, the S&P BSE SENSEX is up 18.4% over the year.

(To know more, check out historical annual results for SANGHI INDUSTRIES and quarterly results for SANGHI INDUSTRIES)