SHREYANS INDUSTRIES 2023-24 Annual Report Analysis

Thu, 18 Jul

SHREYANS INDUSTRIES 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.

SHREYANS INDUSTRIES Income Statement Analysis

• Operating income during the year fell 19.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 8.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.0% in FY24 as against 12.3% in FY23.
• Depreciation charges increased by 3.2% and finance costs decreased by 20.9% YoY, respectively.
• Other income grew by 534.4% YoY.
• Net profit for the year grew by 19.0% YoY.
• Net profit margins during the year grew from 8.5% in FY23 to 12.5% in FY24.

SHREYANS INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	8,655	6,992	-19.2%
Other income	Rs m	55	350	534.4%
Total Revenues	Rs m	8,710	7,341	-15.7%
Gross profit	Rs m	1,068	976	-8.6%
Depreciation	Rs m	132	136	3.2%
Interest	Rs m	54	43	-20.9%
Profit before tax	Rs m	937	1,147	22.4%
Tax	Rs m	203	273	34.8%
Profit after tax	Rs m	735	874	19.0%
Gross profit margin	%	12.3	14.0
Effective tax rate	%	21.6	23.8
Net profit margin	%	8.5	12.5

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SHREYANS INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 1 billion in FY23, thereby witnessing an decrease of -6.4%.
• Long-term debt down at Rs 33 million as compared to Rs 44 million during FY23, a fall of 24.1%.
• Current assets rose 25% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 6 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 16%.

SHREYANS INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,019	3,830	26.9
Current Liabilities	Rs m	1,374	1,286	-6.4
Long-term Debt	Rs m	44	33	-24.1
Total Liabilities	Rs m	4,824	5,601	16.1
Current assets	Rs m	2,528	3,161	25.0
Fixed Assets	Rs m	2,296	2,440	6.3
Total Assets	Rs m	4,824	5,601	16.1

SHREYANS INDUSTRIES Cash Flow Statement Analysis

• SHREYANS INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 783 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -590 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -195 million, an improvement of 30% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 million from the Rs 0 million net cash flows seen during FY23.

SHREYANS INDUSTRIES 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	904	783	-13.3%
Cash Flow from Investing Activities	Rs m	-627	-590	-
Cash Flow from Financing Activities	Rs m	-276	-195	-
Net Cash Flow	Rs m	0	-1	-

Current Valuations for SHREYANS INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.2, an improvement from the EPS of Rs 53.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 300.0, stands at 4.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 3.2 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	625.8	505.5
TTM Earnings per share	Rs	53.1	63.2
Diluted earnings per share	Rs	53.1	63.2
Price to Cash Flow	x	2.3	3.2
TTM P/E ratio	x	2.7	4.7
Price / Book Value ratio	x	0.6	0.8
Market Cap	Rs m	1,791	3,186
Dividends per share (Unadj.)	Rs	5.0	5.0

Ratio Analysis for SHREYANS INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 1.8x 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 28.0x during FY24, from 18.4x 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 22.8% during FY24, from 24.3% 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 30.8% during FY24, from 32.4% 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 improved and stood at 16.4% during FY24, from 16.3% 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	1.8	2.5
Debtors’ Days	Days	155	153
Interest coverage	x	18.4	28.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.3	16.4
Return on equity	%	24.3	22.8
Return on capital employed	%	32.4	30.8

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

SHREYANS INDUSTRIES Share Price Performance

Over the last one year, SHREYANS INDUSTRIES share price has moved up from Rs 195.0 to Rs 300.0, registering a gain of Rs 105.1 or around 53.9%.

Overall, the S&P BSE SENSEX is up 21.3% over the year.

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