SOMANY CERAMICS 2023-24 Annual Report Analysis

Wed, 24 Jul

SOMANY CERAMICS 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.

SOMANY CERAMICS Income Statement Analysis

• Operating income during the year rose 4.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 35.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.6% in FY24 as against 7.4% in FY23.
• Depreciation charges increased by 6.9% and finance costs increased by 15.1% YoY, respectively.
• Other income declined by 22.6% YoY.
• Net profit for the year grew by 48.5% YoY.
• Net profit margins during the year grew from 2.7% in FY23 to 3.8% in FY24.

SOMANY CERAMICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	24,785	25,914	4.6%
Other income	Rs m	174	135	-22.6%
Total Revenues	Rs m	24,959	26,048	4.4%
Gross profit	Rs m	1,837	2,483	35.2%
Depreciation	Rs m	679	725	6.9%
Interest	Rs m	404	465	15.1%
Profit before tax	Rs m	929	1,428	53.8%
Tax	Rs m	259	434	67.4%
Profit after tax	Rs m	669	994	48.5%
Gross profit margin	%	7.4	9.6
Effective tax rate	%	27.9	30.4
Net profit margin	%	2.7	3.8

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SOMANY CERAMICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 9 billion as compared to Rs 9 billion in FY23, thereby witnessing an increase of 7.6%.
• Long-term debt stood at Rs 2 billion as compared to Rs 2 billion during FY23, a growth of 0.3%.
• Current assets fell 4% and stood at Rs 9 billion, while fixed assets rose 5% and stood at Rs 12 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 21 billion as against Rs 21 billion during FY23, thereby witnessing a growth of 1%.

SOMANY CERAMICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,844	7,133	-9.1
Current Liabilities	Rs m	8,762	9,430	7.6
Long-term Debt	Rs m	1,851	1,857	0.3
Total Liabilities	Rs m	20,651	20,764	0.5
Current assets	Rs m	9,618	9,222	-4.1
Fixed Assets	Rs m	11,033	11,543	4.6
Total Assets	Rs m	20,651	20,764	0.5

SOMANY CERAMICS Cash Flow Statement Analysis

• SOMANY CERAMICS 's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 139.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -1 billion, an improvement of 35.2% 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 -869 million from the Rs 523 million net cash flows seen during FY23.

SOMANY CERAMICS 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	1,645	3,934	139.1%
Cash Flow from Investing Activities	Rs m	-909	-1,229	-
Cash Flow from Financing Activities	Rs m	-213	-3,559	-
Net Cash Flow	Rs m	523	-869	-

Current Valuations for SOMANY CERAMICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 24.2, an improvement from the EPS of Rs 15.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 775.4, stands at 32.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.5 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 15.3 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	583.6	632.0
TTM Earnings per share	Rs	15.8	24.2
Diluted earnings per share	Rs	16.3	24.2
Price to Cash Flow	x	14.9	15.3
TTM P/E ratio	x	29.9	32.0
Price / Book Value ratio	x	3.2	3.7
Market Cap	Rs m	24,958	26,324
Dividends per share (Unadj.)	Rs	3.0	3.0

Ratio Analysis for SOMANY CERAMICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 improved and stood at 4.1x during FY24, from 3.3x 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 13.9% during FY24, from 8.5% 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 21.1% during FY24, from 13.7% 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 improved and stood at 7.0% during FY24, from 5.2% 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	1.1	1.0
Debtors’ Days	Days	395	475
Interest coverage	x	3.3	4.1
Debt to equity ratio	x	0.2	0.3
Return on assets	%	5.2	7.0
Return on equity	%	8.5	13.9
Return on capital employed	%	13.7	21.1

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

SOMANY CERAMICS Share Price Performance

Over the last one year, SOMANY CERAMICS share price has moved up from Rs 745.6 to Rs 775.4, registering a gain of Rs 29.8 or around 4.0%.

Overall, the S&P BSE SENSEX is up 20.9% over the year.

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