SHRIRAM ASSE 2023-24 Annual Report Analysis

Fri, 21 Jun

SHRIRAM ASSE 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.

SHRIRAM ASSE Income Statement Analysis

• Operating income during the year rose 38.6% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 62.4% in FY24 as against 46.3% in FY23.
• Depreciation charges increased by 147.5% and finance costs decreased by 21.0% YoY, respectively.
• Other income grew by 153.3% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 70.3% in FY23 to 86.4% in FY24.

SHRIRAM ASSE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	57	79	38.6%
Other income	Rs m	1	3	153.3%
Total Revenues	Rs m	58	82	40.6%
Gross profit	Rs m	-27	-50	NA
Depreciation	Rs m	4	9	147.5%
Interest	Rs m	16	12	-21.0%
Profit before tax	Rs m	-45	-68	NA
Tax	Rs m	-4	1	NA
Profit after tax	Rs m	-40	-69	NA
Gross profit margin	%	-46.3	-62.4
Effective tax rate	%	9.9	-0.8
Net profit margin	%	-70.3	-86.4

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SHRIRAM ASSE Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 16 million as compared to Rs 24 million in FY23, thereby witnessing an decrease of -33.4%.
• Current assets fell 38% and stood at Rs 85 million, while fixed assets rose 6% and stood at Rs 716 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 801 million as against Rs 812 million during FY23, thereby witnessing a fall of 1%.

SHRIRAM ASSE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	553	762	37.8
Current Liabilities	Rs m	24	16	-33.4
Long-term Debt	Rs m	188	0	-100.0
Total Liabilities	Rs m	812	801	-1.3
Current assets	Rs m	137	85	-38.0
Fixed Assets	Rs m	675	716	6.1
Total Assets	Rs m	812	801	-1.3

SHRIRAM ASSE Cash Flow Statement Analysis

• SHRIRAM ASSE's cash flow from operating activities (CFO) during FY24 stood at Rs -44 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -24 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 26 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -41 million from the Rs 43 million net cash flows seen during FY23.

SHRIRAM ASSE 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	-76	-44	-
Cash Flow from Investing Activities	Rs m	-151	-24	-
Cash Flow from Financing Activities	Rs m	270	26	-90.3%
Net Cash Flow	Rs m	43	-41	-

Current Valuations for SHRIRAM ASSE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.3, an improvement from the EPS of Rs -6.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 290.6, stands at -55.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.0 times, while the price to sales ratio stands at 47.6 times.
• The company's price to cash flow (P/CF) ratio stood at -53.4 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	8.9	6.1
TTM Earnings per share	Rs	-6.3	-5.3
Diluted earnings per share	Rs	-3.1	-5.3
Price to Cash Flow	x	-48.2	-53.4
TTM P/E ratio	x	-43.9	-55.1
Price / Book Value ratio	x	2.0	4.2
Market Cap	Rs m	1,084	3,196
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHRIRAM ASSE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 5.3x during FY24, from 5.7x 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 -4.5x during FY24, from -1.9x 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 -9.0% during FY24, from -7.3% 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 declined and down at -7.3% during FY24, from -3.9% 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 declined and down at -7.0% during FY24, from -3.0% 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	5.7	5.3
Debtors’ Days	Days	42	55
Interest coverage	x	-1.9	-4.5
Debt to equity ratio	x	0.3	0.0
Return on assets	%	-3.0	-7.0
Return on equity	%	-7.3	-9.0
Return on capital employed	%	-3.9	-7.3

To see how SHRIRAM ASSE has performed over the last 5 years, please visit here.

SHRIRAM ASSE Share Price Performance

Over the last one year, SHRIRAM ASSE share price has moved up from Rs 127.4 to Rs 290.6, registering a gain of Rs 163.2 or around 128.1%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for SHRIRAM ASSE and quarterly results for SHRIRAM ASSE)