SOLAR INDUSTRIES 2023-24 Annual Report Analysis

Fri, 28 Jun

SOLAR 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.

SOLAR INDUSTRIES Income Statement Analysis

• Operating income during the year fell 12.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 22.6% in FY24 as against 18.6% in FY23.
• Depreciation charges increased by 11.8% and finance costs increased by 21.0% YoY, respectively.
• Other income grew by 41.1% YoY.
• Net profit for the year grew by 7.9% YoY.
• Net profit margins during the year grew from 11.7% in FY23 to 14.4% in FY24.

SOLAR INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	69,225	60,695	-12.3%
Other income	Rs m	315	445	41.1%
Total Revenues	Rs m	69,541	61,140	-12.1%
Gross profit	Rs m	12,887	13,696	6.3%
Depreciation	Rs m	1,282	1,434	11.8%
Interest	Rs m	904	1,094	21.0%
Profit before tax	Rs m	11,016	11,613	5.4%
Tax	Rs m	2,904	2,861	-1.5%
Profit after tax	Rs m	8,112	8,752	7.9%
Gross profit margin	%	18.6	22.6
Effective tax rate	%	26.4	24.6
Net profit margin	%	11.7	14.4

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

SOLAR INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 15 billion as compared to Rs 16 billion in FY23, thereby witnessing an decrease of -8.0%.
• Long-term debt stood at Rs 6 billion as compared to Rs 5 billion during FY23, a growth of 23.4%.
• Current assets rose 6% and stood at Rs 26 billion, while fixed assets rose 22% and stood at Rs 29 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 56 billion as against Rs 49 billion during FY23, thereby witnessing a growth of 14%.

SOLAR INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	26,103	33,056	26.6
Current Liabilities	Rs m	16,323	15,014	-8.0
Long-term Debt	Rs m	4,727	5,836	23.4
Total Liabilities	Rs m	49,087	55,770	13.6
Current assets	Rs m	25,014	26,484	5.9
Fixed Assets	Rs m	24,074	29,287	21.7
Total Assets	Rs m	49,087	55,770	13.6

SOLAR INDUSTRIES Cash Flow Statement Analysis

• SOLAR INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 14 billion, an improvement of 114.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -7 billion, an improvement of 40.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 148 million from the Rs 2 billion net cash flows seen during FY23.

SOLAR 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	6,565	14,060	114.2%
Cash Flow from Investing Activities	Rs m	-5,190	-7,265	-
Cash Flow from Financing Activities	Rs m	1,182	-3,703	-
Net Cash Flow	Rs m	1,604	148	-90.8%

Current Valuations for SOLAR INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 96.7, an improvement from the EPS of Rs 89.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 9,833.1, stands at 101.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 26.9 times, while the price to sales ratio stands at 14.7 times.
• The company's price to cash flow (P/CF) ratio stood at 57.2 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	765.0	670.7
TTM Earnings per share	Rs	89.6	96.7
Diluted earnings per share	Rs	89.6	96.7
Price to Cash Flow	x	35.8	57.2
TTM P/E ratio	x	41.4	101.7
Price / Book Value ratio	x	12.1	17.6
Market Cap	Rs m	316,985	583,030
Dividends per share (Unadj.)	Rs	8.0	8.5

Ratio Analysis for SOLAR INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.5x 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 11.6x during FY24, from 13.2x 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 declined and down at 26.5% during FY24, from 31.1% 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 32.7% during FY24, from 38.7% 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 17.7% during FY24, from 18.4% 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	1.5	1.8
Debtors’ Days	Days	4	5
Interest coverage	x	13.2	11.6
Debt to equity ratio	x	0.2	0.2
Return on assets	%	18.4	17.7
Return on equity	%	31.1	26.5
Return on capital employed	%	38.7	32.7

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

SOLAR INDUSTRIES Share Price Performance

Over the last one year, SOLAR INDUSTRIES share price has moved up from Rs 3,839.5 to Rs 9,833.1, registering a gain of Rs 5,993.6 or around 156.1%.

Overall, the S&P BSE SENSEX is up 25.8% over the year.

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