SREE RAYAL 2023-24 Annual Report Analysis

Thu, 12 Sep

SREE RAYAL 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.

SREE RAYAL Income Statement Analysis

• Operating income during the year fell 47.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 44.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.5% in FY24 as against 10.9% in FY23.
• Depreciation charges decreased by 45.2% and finance costs decreased by 16.1% YoY, respectively.
• Other income declined by 36.0% YoY.
• Net profit for the year declined by 48.8% YoY.
• Net profit margins during the year declined from 9.3% in FY23 to 9.1% in FY24.

SREE RAYAL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	16,501	8,660	-47.5%
Other income	Rs m	346	222	-36.0%
Total Revenues	Rs m	16,847	8,882	-47.3%
Gross profit	Rs m	1,799	997	-44.6%
Depreciation	Rs m	193	106	-45.2%
Interest	Rs m	48	40	-16.1%
Profit before tax	Rs m	1,904	1,073	-43.7%
Tax	Rs m	362	283	-21.7%
Profit after tax	Rs m	1,543	790	-48.8%
Gross profit margin	%	10.9	11.5
Effective tax rate	%	19.0	26.4
Net profit margin	%	9.3	9.1

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SREE RAYAL Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 1 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -57.2%.
• Long-term debt stood at Rs 80 million as compared to Rs 32 million during FY23, a growth of 150.0%.
• Current assets fell 15% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 11 billion during FY23, thereby witnessing a fall of 10%.

SREE RAYAL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,509	8,006	6.6
Current Liabilities	Rs m	2,733	1,170	-57.2
Long-term Debt	Rs m	32	80	150.0
Total Liabilities	Rs m	10,855	9,767	-10.0
Current assets	Rs m	6,944	5,922	-14.7
Fixed Assets	Rs m	3,911	3,846	-1.7
Total Assets	Rs m	10,855	9,767	-10.0

SREE RAYAL Cash Flow Statement Analysis

• SREE RAYAL's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -200 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -168 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 125 million net cash flows seen during FY23.

SREE RAYAL 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	1,414	1,397	-1.2%
Cash Flow from Investing Activities	Rs m	-1,123	-200	-
Cash Flow from Financing Activities	Rs m	-167	-168	-
Net Cash Flow	Rs m	125	1,029	722.2%

Current Valuations for SREE RAYAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.0, an decline from the EPS of Rs 89.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 574.2, stands at 13.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 11.8 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	961.6	504.7
TTM Earnings per share	Rs	89.9	46.0
Diluted earnings per share	Rs	89.9	46.0
Price to Cash Flow	x	4.1	11.8
TTM P/E ratio	x	4.6	13.4
Price / Book Value ratio	x	1.5	1.3
Market Cap	Rs m	11,271	10,564
Dividends per share (Unadj.)	Rs	4.0	3.0

Ratio Analysis for SREE RAYAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.1x during FY24, from 2.5x 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 27.9x during FY24, from 41.1x 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 9.9% during FY24, from 20.5% 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 declined and down at 13.8% during FY24, from 25.9% 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 8.5% during FY24, from 14.6% 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	2.5	5.1
Debtors’ Days	Days	330	450
Interest coverage	x	41.1	27.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	14.6	8.5
Return on equity	%	20.5	9.9
Return on capital employed	%	25.9	13.8

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

SREE RAYAL Share Price Performance

Over the last one year, SREE RAYAL share price has moved down from Rs 606.1 to Rs 574.2, registering a loss of Rs 31.9 or around 5.3%.

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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