SOM DISTILLERIES 2023-24 Annual Report Analysis

Thu, 12 Sep

SOM DISTILLERIES 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.

SOM DISTILLERIES Income Statement Analysis

• Operating income during the year fell 15.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 46.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 154.0% in FY24 as against 88.5% in FY23.
• Depreciation charges increased by 25.5% and finance costs decreased by 25.6% YoY, respectively.
• Other income grew by 329.2% YoY.
• Net profit for the year grew by 43.4% YoY.
• Net profit margins during the year grew from 52.3% in FY23 to 89.1% in FY24.

SOM DISTILLERIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,153	971	-15.8%
Other income	Rs m	13	57	329.2%
Total Revenues	Rs m	1,166	1,028	-11.9%
Gross profit	Rs m	1,021	1,495	46.4%
Depreciation	Rs m	170	213	25.5%
Interest	Rs m	160	119	-25.6%
Profit before tax	Rs m	705	1,219	73.1%
Tax	Rs m	101	354	249.2%
Profit after tax	Rs m	603	865	43.4%
Gross profit margin	%	88.5	154.0
Effective tax rate	%	14.4	29.1
Net profit margin	%	52.3	89.1

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SOM DISTILLERIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 35.0%.
• Long-term debt down at Rs 992 million as compared to Rs 2 billion during FY23, a fall of 37.8%.
• Current assets rose 43% and stood at Rs 6 billion, while fixed assets rose 18% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 28%.

SOM DISTILLERIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,754	5,299	41.2
Current Liabilities	Rs m	3,175	4,284	35.0
Long-term Debt	Rs m	1,597	992	-37.8
Total Liabilities	Rs m	9,118	11,695	28.3
Current assets	Rs m	3,895	5,556	42.6
Fixed Assets	Rs m	5,224	6,139	17.5
Total Assets	Rs m	9,118	11,695	28.3

SOM DISTILLERIES Cash Flow Statement Analysis

• SOM DISTILLERIES's cash flow from operating activities (CFO) during FY24 stood at Rs 975 million, an improvement of 583.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 4.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 161 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 7 million from the Rs 31 million net cash flows seen during FY23.

SOM DISTILLERIES 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	143	975	583.1%
Cash Flow from Investing Activities	Rs m	-1,084	-1,129	-
Cash Flow from Financing Activities	Rs m	973	161	-83.5%
Net Cash Flow	Rs m	31	7	-78.1%

Current Valuations for SOM DISTILLERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.1, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 117.0, stands at 24.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.3 times, while the price to sales ratio stands at 9.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.7 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	15.6	12.4
TTM Earnings per share	Rs	8.2	11.1
Diluted earnings per share	Rs	3.1	4.4
Price to Cash Flow	x	15.5	7.7
TTM P/E ratio	x	19.9	24.4
Price / Book Value ratio	x	2.1	1.6
Market Cap	Rs m	7,703	8,314
Dividends per share (Unadj.)	Rs	0.1	0.0

Ratio Analysis for SOM DISTILLERIES

• 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 11.3x during FY24, from 5.4x 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 improved and stood at 16.3% during FY24, from 16.1% 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 improved and stood at 21.3% during FY24, from 16.2% 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 improved and stood at 8.4% during FY24, from 8.4% 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	1.2	1.3
Debtors’ Days	Days	4,500	8,942
Interest coverage	x	5.4	11.3
Debt to equity ratio	x	0.4	0.2
Return on assets	%	8.4	8.4
Return on equity	%	16.1	16.3
Return on capital employed	%	16.2	21.3

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

SOM DISTILLERIES Share Price Performance

Over the last one year, SOM DISTILLERIES share price has moved down from Rs 125.9 to Rs 117.0, registering a loss of Rs 8.9 or around 7.1%.

Overall, the S&P BSE SENSEX is up 21.6% over the year.

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