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SRM CONTRACTORS LTD. 2023-24 Annual Report Analysis

Mon, 21 Oct

SRM CONTRACTORS LTD. 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.

SRM CONTRACTORS LTD. Income Statement Analysis

• Operating income during the year rose 14.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.2% in FY24 as against 12.8% in FY23.
• Depreciation charges increased by 14.3% and finance costs decreased by 1.7% YoY, respectively.
• Other income grew by 2009.4% YoY.
• Net profit for the year grew by 43.8% YoY.
• Net profit margins during the year grew from 6.2% in FY23 to 7.9% in FY24.

SRM CONTRACTORS LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	3,003	3,424	14.0%
Other income	Rs m	4	76	2,009.4%
Total Revenues	Rs m	3,007	3,500	16.4%
Gross profit	Rs m	383	416	8.7%
Depreciation	Rs m	78	89	14.3%
Interest	Rs m	58	57	-1.7%
Profit before tax	Rs m	250	346	38.2%
Tax	Rs m	63	76	21.3%
Profit after tax	Rs m	187	270	43.8%
Gross profit margin	%	12.8	12.2
Effective tax rate	%	25.2	22.1
Net profit margin	%	6.2	7.9

For Investors: Our Big Prediction

SRM CONTRACTORS LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 794 million as compared to Rs 469 million in FY23, thereby witnessing an increase of 69.2%.
• Long-term debt down at Rs 257 million as compared to Rs 258 million during FY23, a fall of 0.2%.
• Current assets rose 96% and stood at Rs 2 billion, while fixed assets rose 12% and stood at Rs 462 million 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 71%.

SRM CONTRACTORS LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	632	903	43.0
Current Liabilities	Rs m	469	794	69.2
Long-term Debt	Rs m	258	257	-0.2
Total Liabilities	Rs m	1,374	2,350	71.1
Current assets	Rs m	961	1,888	96.4
Fixed Assets	Rs m	413	462	12.0
Total Assets	Rs m	1,374	2,350	71.1

SRM CONTRACTORS LTD. Cash Flow Statement Analysis

• SRM CONTRACTORS LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 143 million, an improvement of 9.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -139 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 5 million from the Rs 40 million net cash flows seen during FY23.

SRM CONTRACTORS LTD. 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	130	143	9.4%
Cash Flow from Investing Activities	Rs m	-189	-139	-
Cash Flow from Financing Activities	Rs m	98	2	-98.4%
Net Cash Flow	Rs m	40	5	-86.7%

Current Valuations for SRM CONTRACTORS LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.1, an improvement from the EPS of Rs 11.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 275.3, stands at 23.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.0 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 17.6 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	179.4	204.6
TTM Earnings per share	Rs	11.2	16.1
Diluted earnings per share	Rs	8.2	11.8
Price to Cash Flow	x	0.0	17.6
TTM P/E ratio	x	0.0	23.4
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	6,315
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SRM CONTRACTORS LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY24, from 2.0x 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 7.1x during FY24, from 5.3x 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 29.9% during FY24, from 29.7% 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 34.7% during FY24, from 34.7% 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 13.9% during FY24, from 17.9% 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	2.0	2.4
Debtors’ Days	Days	187	33,365,989
Interest coverage	x	5.3	7.1
Debt to equity ratio	x	0.4	0.3
Return on assets	%	17.9	13.9
Return on equity	%	29.7	29.9
Return on capital employed	%	34.7	34.7

To see how SRM CONTRACTORS LTD. has performed over the last 5 years, please visit here.

SRM CONTRACTORS LTD. Share Price Performance

Over the last one year, SRM CONTRACTORS LTD. share price has moved up from Rs 0.0 to Rs 275.3, registering a gain of Rs 275.3 or around 0.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 71,246.7 (down 0.8%). Over the last one year it has moved up from 47,213.1 to 71,246.7, a gain of 24,034 points (up 50.9%).

Overall, the S&P BSE SENSEX is up 22.4% over the year.

(To know more, check out historical annual results for SRM CONTRACTORS LTD. and quarterly results for SRM CONTRACTORS LTD.)