SPORTKING INDIA 2023-24 Annual Report Analysis

Mon, 29 Jul

SPORTKING INDIA 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.

SPORTKING INDIA Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.8% in FY24 as against 11.4% in FY23.
• Depreciation charges increased by 78.4% and finance costs increased by 138.5% YoY, respectively.
• Other income grew by 209.8% YoY.
• Net profit for the year declined by 46.7% YoY.
• Net profit margins during the year declined from 6.0% in FY23 to 3.0% in FY24.

SPORTKING INDIA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,050	23,771	7.8%
Other income	Rs m	115	357	209.8%
Total Revenues	Rs m	22,165	24,128	8.9%
Gross profit	Rs m	2,524	2,087	-17.3%
Depreciation	Rs m	482	859	78.4%
Interest	Rs m	262	626	138.5%
Profit before tax	Rs m	1,895	959	-49.4%
Tax	Rs m	575	256	-55.6%
Profit after tax	Rs m	1,320	703	-46.7%
Gross profit margin	%	11.4	8.8
Effective tax rate	%	30.4	26.7
Net profit margin	%	6.0	3.0

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SPORTKING INDIA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 6 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 89.1%.
• Long-term debt stood at Rs 4 billion as compared to Rs 3 billion during FY23, a growth of 15.1%.
• Current assets rose 42% and stood at Rs 12 billion, while fixed assets rose 2% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 20 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 22%.

SPORTKING INDIA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,997	9,024	0.3
Current Liabilities	Rs m	3,376	6,386	89.1
Long-term Debt	Rs m	3,427	3,944	15.1
Total Liabilities	Rs m	16,143	19,770	22.5
Current assets	Rs m	8,244	11,688	41.8
Fixed Assets	Rs m	7,899	8,082	2.3
Total Assets	Rs m	16,143	19,770	22.5

SPORTKING INDIA Cash Flow Statement Analysis

• SPORTKING INDIA's cash flow from operating activities (CFO) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -456 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 3 billion, an improvement of 332% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -101 million from the Rs 110 million net cash flows seen during FY23.

SPORTKING INDIA 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	5,197	-2,358	-
Cash Flow from Investing Activities	Rs m	-3,919	-456	-
Cash Flow from Financing Activities	Rs m	-1,168	2,713	-
Net Cash Flow	Rs m	110	-101	-

Current Valuations for SPORTKING INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 55.3, an decline from the EPS of Rs 99.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,288.0, stands at 19.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 6.6 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	1,659.2	1,870.3
TTM Earnings per share	Rs	99.3	55.3
Diluted earnings per share	Rs	103.9	55.4
Price to Cash Flow	x	4.6	6.6
TTM P/E ratio	x	6.2	19.5
Price / Book Value ratio	x	1.5	1.1
Market Cap	Rs m	13,310	10,267
Dividends per share (Unadj.)	Rs	0.0	5.0

Ratio Analysis for SPORTKING INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY24, from 2.4x 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 2.5x during FY24, from 8.2x 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 7.8% during FY24, from 14.7% 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 12.2% during FY24, from 17.4% 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 6.7% during FY24, from 9.8% 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	2.4	1.8
Debtors’ Days	Days	387	547
Interest coverage	x	8.2	2.5
Debt to equity ratio	x	0.4	0.4
Return on assets	%	9.8	6.7
Return on equity	%	14.7	7.8
Return on capital employed	%	17.4	12.2

To see how SPORTKING INDIA has performed over the last 5 years, please visit here.

SPORTKING INDIA Share Price Performance

Over the last one year, SPORTKING INDIA share price has moved up from Rs 790.6 to Rs 1,288.0, registering a gain of Rs 497.5 or around 62.9%.

Overall, the S&P BSE SENSEX is up 22.6% over the year.

(To know more, check out historical annual results for SPORTKING INDIA and quarterly results for SPORTKING INDIA)