SREELEATHERS 2023-24 Annual Report Analysis

Tue, 24 Sep

SREELEATHERS 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.

SREELEATHERS Income Statement Analysis

• Operating income during the year rose 9.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 5.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.3% in FY24 as against 17.9% in FY23.
• Depreciation charges decreased by 7.5% and finance costs increased by 25.8% YoY, respectively.
• Other income declined by 4.1% YoY.
• Net profit for the year grew by 4.8% YoY.
• Net profit margins during the year declined from 12.8% in FY23 to 12.3% in FY24.

SREELEATHERS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,996	2,177	9.0%
Other income	Rs m	6	6	-4.1%
Total Revenues	Rs m	2,002	2,182	9.0%
Gross profit	Rs m	357	376	5.2%
Depreciation	Rs m	13	12	-7.5%
Interest	Rs m	5	6	25.8%
Profit before tax	Rs m	346	364	5.2%
Tax	Rs m	90	95	6.3%
Profit after tax	Rs m	256	268	4.8%
Gross profit margin	%	17.9	17.3
Effective tax rate	%	26.0	26.2
Net profit margin	%	12.8	12.3

Must See: These Segments are Witnessing Incredible Growth with Modi's Push

SREELEATHERS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 114 million as compared to Rs 121 million in FY23, thereby witnessing an decrease of -5.8%.
• Current assets rose 4% and stood at Rs 241 million, while fixed assets rose 12% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4 billion as against Rs 4 billion during FY23, thereby witnessing a growth of 12%.

SREELEATHERS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,718	4,175	12.3
Current Liabilities	Rs m	121	114	-5.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,938	4,392	11.6
Current assets	Rs m	232	241	3.9
Fixed Assets	Rs m	3,706	4,152	12.0
Total Assets	Rs m	3,938	4,392	11.6

SREELEATHERS Cash Flow Statement Analysis

• SREELEATHERS's cash flow from operating activities (CFO) during FY24 stood at Rs 295 million, an improvement of 1.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -296 million, an improvement of 18.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -8 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -9 million from the Rs 36 million net cash flows seen during FY23.

SREELEATHERS 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	291	295	1.5%
Cash Flow from Investing Activities	Rs m	-249	-296	-
Cash Flow from Financing Activities	Rs m	-6	-8	-
Net Cash Flow	Rs m	36	-9	-

Current Valuations for SREELEATHERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.6, an improvement from the EPS of Rs 11.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 290.3, stands at 26.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.6 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at 24.6 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	86.2	94.0
TTM Earnings per share	Rs	11.1	11.6
Diluted earnings per share	Rs	11.1	11.6
Price to Cash Flow	x	14.6	24.6
TTM P/E ratio	x	15.3	26.9
Price / Book Value ratio	x	1.3	1.7
Market Cap	Rs m	4,805	6,900
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SREELEATHERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY24, from 1.9x 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 64.8x during FY24, from 77.4x 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 6.4% during FY24, from 6.9% 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 8.9% during FY24, from 9.4% 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 6.2% during FY24, from 6.6% 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	1.9	2.1
Debtors’ Days	Days	6	7
Interest coverage	x	77.4	64.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	6.2
Return on equity	%	6.9	6.4
Return on capital employed	%	9.4	8.9

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

SREELEATHERS Share Price Performance

Over the last one year, SREELEATHERS share price has moved up from Rs 234.5 to Rs 290.3, registering a gain of Rs 55.9 or around 23.8%.

Overall, the S&P BSE SENSEX is up 27.3% over the year.

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