SARLA PERFORMANCE 2023-24 Annual Report Analysis

Tue, 23 Jul

SARLA PERFORMANCE 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.

SARLA PERFORMANCE Income Statement Analysis

• Operating income during the year fell 1.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 15.1% in FY24 as against 14.7% in FY23.
• Depreciation charges decreased by 5.8% and finance costs increased by 20.2% YoY, respectively.
• Other income grew by 112.0% YoY.
• Net profit for the year grew by 53.0% YoY.
• Net profit margins during the year grew from 5.5% in FY23 to 8.5% in FY24.

SARLA PERFORMANCE Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,874	3,833	-1.1%
Other income	Rs m	99	209	112.0%
Total Revenues	Rs m	3,973	4,042	1.7%
Gross profit	Rs m	568	578	1.8%
Depreciation	Rs m	296	279	-5.8%
Interest	Rs m	48	58	20.2%
Profit before tax	Rs m	323	451	39.7%
Tax	Rs m	109	124	13.5%
Profit after tax	Rs m	214	327	53.0%
Gross profit margin	%	14.7	15.1
Effective tax rate	%	33.8	27.4
Net profit margin	%	5.5	8.5

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SARLA PERFORMANCE Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 8.8%.
• Long-term debt stood at Rs 246 million as compared to Rs 13 million during FY23, a growth of 1736.0%.
• Current assets rose 23% and stood at Rs 3 billion, while fixed assets rose 6% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 7 billion as against Rs 6 billion during FY23, thereby witnessing a growth of 12%.

SARLA PERFORMANCE Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,949	4,283	8.5
Current Liabilities	Rs m	1,582	1,721	8.8
Long-term Debt	Rs m	13	246	1,736.0
Total Liabilities	Rs m	5,804	6,506	12.1
Current assets	Rs m	2,087	2,568	23.1
Fixed Assets	Rs m	3,717	3,938	6.0
Total Assets	Rs m	5,804	6,506	12.1

SARLA PERFORMANCE Cash Flow Statement Analysis

• SARLA PERFORMANCE's cash flow from operating activities (CFO) during FY24 stood at Rs 310 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -563 million, an improvement of 0.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 238 million, an improvement of 152% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -14 million from the Rs 7 million net cash flows seen during FY23.

SARLA PERFORMANCE 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	1,020	310	-69.6%
Cash Flow from Investing Activities	Rs m	-558	-563	-
Cash Flow from Financing Activities	Rs m	-455	238	-
Net Cash Flow	Rs m	7	-14	-

Current Valuations for SARLA PERFORMANCE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.9, an improvement from the EPS of Rs 2.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 98.9, stands at 25.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 2.2 times.
• The company's price to cash flow (P/CF) ratio stood at 7.4 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	46.4	45.9
TTM Earnings per share	Rs	2.6	3.9
Diluted earnings per share	Rs	2.6	3.9
Price to Cash Flow	x	5.5	7.4
TTM P/E ratio	x	13.0	25.2
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	4,244	4,496
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SARLA PERFORMANCE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY24, from 1.3x 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 8.8x during FY24, from 7.7x 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 improved and stood at 7.6% during FY24, from 5.4% 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 improved and stood at 11.2% 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 improved and stood at 5.9% during FY24, from 4.5% 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	1.3	1.5
Debtors’ Days	Days	572	867
Interest coverage	x	7.7	8.8
Debt to equity ratio	x	0.0	0.1
Return on assets	%	4.5	5.9
Return on equity	%	5.4	7.6
Return on capital employed	%	9.4	11.2

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

SARLA PERFORMANCE Share Price Performance

Over the last one year, SARLA PERFORMANCE share price has moved up from Rs 48.9 to Rs 98.9, registering a gain of Rs 49.9 or around 102.0%.

Overall, the S&P BSE SENSEX is up 19.7% over the year.

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