S.P. APPARELS 2023-24 Annual Report Analysis

Wed, 16 Oct

S.P. APPARELS 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.

S.P. APPARELS Income Statement Analysis

• Operating income during the year rose 0.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 6.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.3% in FY24 as against 13.4% in FY23.
• Depreciation charges increased by 4.4% and finance costs increased by 0.4% YoY, respectively.
• Other income declined by 7.0% YoY.
• Net profit for the year grew by 8.6% YoY.
• Net profit margins during the year grew from 7.6% in FY23 to 8.2% in FY24.

S.P. APPARELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	10,809	10,874	0.6%
Other income	Rs m	204	190	-7.0%
Total Revenues	Rs m	11,013	11,063	0.5%
Gross profit	Rs m	1,451	1,551	6.9%
Depreciation	Rs m	362	378	4.4%
Interest	Rs m	186	187	0.4%
Profit before tax	Rs m	1,108	1,176	6.2%
Tax	Rs m	283	280	-0.8%
Profit after tax	Rs m	825	896	8.6%
Gross profit margin	%	13.4	14.3
Effective tax rate	%	25.5	23.8
Net profit margin	%	7.6	8.2

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S.P. APPARELS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 4 billion in FY23, thereby witnessing an decrease of -10.1%.
• Long-term debt down at Rs 56 million as compared to Rs 111 million during FY23, a fall of 49.8%.
• Current assets rose 6% and stood at Rs 6 billion, while fixed assets rose 2% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 11 billion during FY23, thereby witnessing a growth of 4%.

S.P. APPARELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	6,736	7,636	13.4
Current Liabilities	Rs m	3,507	3,152	-10.1
Long-term Debt	Rs m	111	56	-49.8
Total Liabilities	Rs m	10,971	11,416	4.1
Current assets	Rs m	5,653	6,012	6.3
Fixed Assets	Rs m	5,317	5,405	1.6
Total Assets	Rs m	10,971	11,416	4.1

S.P. APPARELS Cash Flow Statement Analysis

• S.P. APPARELS's cash flow from operating activities (CFO) during FY24 stood at Rs 792 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 62 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -668 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 186 million from the Rs 83 million net cash flows seen during FY23.

S.P. APPARELS 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	2,160	792	-63.3%
Cash Flow from Investing Activities	Rs m	-1,599	62	-
Cash Flow from Financing Activities	Rs m	-478	-668	-
Net Cash Flow	Rs m	83	186	125.7%

Current Valuations for S.P. APPARELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 35.7, an improvement from the EPS of Rs 32.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 875.3, stands at 23.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 10.2 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	430.8	433.4
TTM Earnings per share	Rs	32.9	35.7
Diluted earnings per share	Rs	32.9	35.7
Price to Cash Flow	x	6.8	10.2
TTM P/E ratio	x	9.8	23.7
Price / Book Value ratio	x	1.4	1.7
Market Cap	Rs m	9,240	12,955
Dividends per share (Unadj.)	Rs	3.0	0.0

Ratio Analysis for S.P. APPARELS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY24, from 1.6x 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 7.3x during FY24, from 6.9x 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 11.7% during FY24, from 12.2% 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 17.7% during FY24, from 18.9% 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 9.5% during FY24, from 9.2% 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	1.6	1.9
Debtors’ Days	Days	35	55
Interest coverage	x	6.9	7.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.2	9.5
Return on equity	%	12.2	11.7
Return on capital employed	%	18.9	17.7

To see how S.P. APPARELS has performed over the last 5 years, please visit here.

S.P. APPARELS Share Price Performance

Over the last one year, S.P. APPARELS share price has moved up from Rs 585.4 to Rs 875.3, registering a gain of Rs 289.9 or around 49.5%.

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for S.P. APPARELS and quarterly results for S.P. APPARELS)