SONA COMSTAR 2023-24 Annual Report Analysis

Thu, 6 Jun

SONA COMSTAR 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.

SONA COMSTAR Income Statement Analysis

• Operating income during the year rose 19.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.1% in FY24 as against 25.9% in FY23.
• Depreciation charges increased by 23.7% and finance costs increased by 52.4% YoY, respectively.
• Other income grew by 106.7% YoY.
• Net profit for the year grew by 31.0% YoY.
• Net profit margins during the year grew from 14.8% in FY23 to 16.3% in FY24.

SONA COMSTAR Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,756	31,848	19.0%
Other income	Rs m	116	239	106.7%
Total Revenues	Rs m	26,872	32,087	19.4%
Gross profit	Rs m	6,924	8,934	29.0%
Depreciation	Rs m	1,780	2,202	23.7%
Interest	Rs m	169	258	52.4%
Profit before tax	Rs m	5,091	6,713	31.9%
Tax	Rs m	1,138	1,535	34.9%
Profit after tax	Rs m	3,953	5,178	31.0%
Gross profit margin	%	25.9	28.1
Effective tax rate	%	22.4	22.9
Net profit margin	%	14.8	16.3

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SONA COMSTAR Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 23.8%.
• Long-term debt down at Rs 292 million as compared to Rs 487 million during FY23, a fall of 40.0%.
• Current assets rose 10% and stood at Rs 15 billion, while fixed assets rose 40% and stood at Rs 25 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 40 billion as against Rs 32 billion during FY23, thereby witnessing a growth of 27%.

SONA COMSTAR Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	22,856	26,348	15.3
Current Liabilities	Rs m	6,498	8,045	23.8
Long-term Debt	Rs m	487	292	-40.0
Total Liabilities	Rs m	31,609	40,053	26.7
Current assets	Rs m	14,013	15,475	10.4
Fixed Assets	Rs m	17,596	24,577	39.7
Total Assets	Rs m	31,609	40,053	26.7

SONA COMSTAR Cash Flow Statement Analysis

• SONA COMSTAR's cash flow from operating activities (CFO) during FY24 stood at Rs 7 billion, an improvement of 29.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -5 billion 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 469 million from the Rs -95 million net cash flows seen during FY23.

SONA COMSTAR 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	5,333	6,928	29.9%
Cash Flow from Investing Activities	Rs m	-5,629	-4,715	-
Cash Flow from Financing Activities	Rs m	187	-1,747	-
Net Cash Flow	Rs m	-95	469	-

Current Valuations for SONA COMSTAR

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.8, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 657.8, stands at 74.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.6 times, while the price to sales ratio stands at 12.1 times.
• The company's price to cash flow (P/CF) ratio stood at 45.0 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	45.7	54.3
TTM Earnings per share	Rs	6.8	8.8
Diluted earnings per share	Rs	6.7	8.8
Price to Cash Flow	x	42.3	45.0
TTM P/E ratio	x	61.3	74.5
Price / Book Value ratio	x	13.9	12.6
Market Cap	Rs m	317,684	332,105
Dividends per share (Unadj.)	Rs	2.8	3.1

Ratio Analysis for SONA COMSTAR

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY24, from 2.2x 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 deteriorated and stood at 27.0x during FY24, from 31.1x 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 19.7% during FY24, from 17.3% 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 26.2% during FY24, from 22.5% 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 13.6% during FY24, from 13.0% 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	2.2	1.9
Debtors’ Days	Days	83	74
Interest coverage	x	31.1	27.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	13.0	13.6
Return on equity	%	17.3	19.7
Return on capital employed	%	22.5	26.2

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

SONA COMSTAR Share Price Performance

Over the last one year, SONA COMSTAR share price has moved up from Rs 528.0 to Rs 657.8, registering a gain of Rs 129.8 or around 24.6%.

Overall, the S&P BSE SENSEX is up 19.0% over the year.

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