SURAJ STAINLESS 2023-24 Annual Report Analysis

Mon, 3 Jun

SURAJ STAINLESS 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.

SURAJ STAINLESS Income Statement Analysis

• Operating income during the year fell 9.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.2% in FY24 as against 9.5% in FY23.
• Depreciation charges increased by 18.4% and finance costs decreased by 10.3% YoY, respectively.
• Other income declined by 39.0% YoY.
• Net profit for the year grew by 7.0% YoY.
• Net profit margins during the year grew from 5.5% in FY23 to 6.5% in FY24.

SURAJ STAINLESS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,666	3,307	-9.8%
Other income	Rs m	57	35	-39.0%
Total Revenues	Rs m	3,723	3,341	-10.3%
Gross profit	Rs m	350	403	15.3%
Depreciation	Rs m	79	94	18.4%
Interest	Rs m	41	37	-10.3%
Profit before tax	Rs m	286	307	7.4%
Tax	Rs m	85	92	8.4%
Profit after tax	Rs m	201	215	7.0%
Gross profit margin	%	9.5	12.2
Effective tax rate	%	29.7	30.0
Net profit margin	%	5.5	6.5

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SURAJ STAINLESS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 617 million as compared to Rs 417 million in FY23, thereby witnessing an increase of 48.1%.
• Current assets fell 5% and stood at Rs 716 million, while fixed assets rose 62% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 1 billion during FY23, thereby witnessing a growth of 27%.

SURAJ STAINLESS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,038	1,225	18.1
Current Liabilities	Rs m	417	617	48.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,457	1,856	27.4
Current assets	Rs m	752	716	-4.8
Fixed Assets	Rs m	705	1,140	61.7
Total Assets	Rs m	1,457	1,856	27.4

SURAJ STAINLESS Cash Flow Statement Analysis

• SURAJ STAINLESS's cash flow from operating activities (CFO) during FY24 stood at Rs 408 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -470 million, an improvement of 153.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 58 million, an improvement of 122% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -4 million from the Rs -2 million net cash flows seen during FY23.

SURAJ STAINLESS 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	446	408	-8.5%
Cash Flow from Investing Activities	Rs m	-185	-470	-
Cash Flow from Financing Activities	Rs m	-263	58	-
Net Cash Flow	Rs m	-2	-4	-

Current Valuations for SURAJ STAINLESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.7, an improvement from the EPS of Rs 11.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 240.0, stands at 21.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.6 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	199.7	180.1
TTM Earnings per share	Rs	11.0	11.7
Diluted earnings per share	Rs	11.0	11.7
Price to Cash Flow	x	5.1	9.6
TTM P/E ratio	x	7.2	21.0
Price / Book Value ratio	x	1.2	2.4
Market Cap	Rs m	1,269	2,965
Dividends per share (Unadj.)	Rs	0.0	1.5

Ratio Analysis for SURAJ STAINLESS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 9.4x during FY24, from 8.0x 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 17.6% during FY24, from 19.4% 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 28.1% during FY24, from 31.5% 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 13.6% during FY24, from 16.6% 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	1.8	1.2
Debtors’ Days	Days	330	378
Interest coverage	x	8.0	9.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	16.6	13.6
Return on equity	%	19.4	17.6
Return on capital employed	%	31.5	28.1

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

SURAJ STAINLESS Share Price Performance

Over the last one year, SURAJ STAINLESS share price has moved up from Rs 122.5 to Rs 240.0, registering a gain of Rs 117.5 or around 95.9%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 33,625.9 (up 2.8%). Over the last one year it has moved up from 19,721.3 to 33,625.9, a gain of 13,905 points (up 70.5%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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