SOBHA 2023-24 Annual Report Analysis

Wed, 17 Jul

SOBHA 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.

SOBHA Income Statement Analysis

• Operating income during the year fell 6.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.9% in FY24 as against 11.2% in FY23.
• Depreciation charges increased by 15.3% and finance costs decreased by 1.4% YoY, respectively.
• Other income grew by 31.0% YoY.
• Net profit for the year declined by 52.9% YoY.
• Net profit margins during the year declined from 3.1% in FY23 to 1.6% in FY24.

SOBHA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	33,101	30,969	-6.4%
Other income	Rs m	923	1,209	31.0%
Total Revenues	Rs m	34,024	32,179	-5.4%
Gross profit	Rs m	3,695	2,770	-25.0%
Depreciation	Rs m	678	782	15.3%
Interest	Rs m	2,490	2,455	-1.4%
Profit before tax	Rs m	1,450	742	-48.8%
Tax	Rs m	408	251	-38.4%
Profit after tax	Rs m	1,042	491	-52.9%
Gross profit margin	%	11.2	8.9
Effective tax rate	%	28.1	33.8
Net profit margin	%	3.1	1.6

Don't Miss: Key Information for Long-term Investors

SOBHA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 104 billion as compared to Rs 94 billion in FY23, thereby witnessing an increase of 10.4%.
• Long-term debt stood at Rs 7 billion as compared to Rs 6 billion during FY23, a growth of 16.8%.
• Current assets rose 7% and stood at Rs 112 billion, while fixed assets rose 12% and stood at Rs 23 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 136 billion as against Rs 126 billion during FY23, thereby witnessing a growth of 8%.

SOBHA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,947	25,141	0.8
Current Liabilities	Rs m	94,242	104,052	10.4
Long-term Debt	Rs m	6,135	7,163	16.8
Total Liabilities	Rs m	125,660	135,709	8.0
Current assets	Rs m	104,806	112,427	7.3
Fixed Assets	Rs m	20,854	23,281	11.6
Total Assets	Rs m	125,660	135,709	8.0

SOBHA Cash Flow Statement Analysis

• SOBHA's cash flow from operating activities (CFO) during FY24 stood at Rs 6 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion, an improvement of 100.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion, an improvement of 56% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 billion from the Rs 1 billion net cash flows seen during FY23.

SOBHA 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	11,502	6,474	-43.7%
Cash Flow from Investing Activities	Rs m	-2,368	-4,749	-
Cash Flow from Financing Activities	Rs m	-7,730	-3,382	-
Net Cash Flow	Rs m	1,403	-1,657	-

Current Valuations for SOBHA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an decline from the EPS of Rs 11.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,965.8, stands at 428.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 78.5 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	349.0	326.5
TTM Earnings per share	Rs	11.0	5.2
Diluted earnings per share	Rs	9.7	4.6
Price to Cash Flow	x	26.8	78.5
TTM P/E ratio	x	40.6	428.1
Price / Book Value ratio	x	2.2	4.0
Market Cap	Rs m	55,124	99,906
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for SOBHA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY24, from 1.1x 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 1.3x during FY24, from 1.6x 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 2.0% during FY24, from 4.2% 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 9.9% during FY24, from 12.7% 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 2.2% during FY24, from 2.8% 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	1.1	1.1
Debtors’ Days	Days	17	19
Interest coverage	x	1.6	1.3
Debt to equity ratio	x	0.2	0.3
Return on assets	%	2.8	2.2
Return on equity	%	4.2	2.0
Return on capital employed	%	12.7	9.9

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

SOBHA Share Price Performance

Over the last one year, SOBHA share price has moved up from Rs 555.0 to Rs 1,965.8, registering a gain of Rs 1,410.8 or around 254.2%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,796.9 (up 1.6%). Over the last one year it has moved up from 4,317.9 to 8,796.9, a gain of 4,479 points (up 103.7%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

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