SUNSHIELD CH 2023-24 Annual Report Analysis

Wed, 24 Jul

SUNSHIELD CH 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.

SUNSHIELD CH Income Statement Analysis

• Operating income during the year rose 15.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.3% in FY24 as against 12.7% in FY23.
• Depreciation charges increased by 14.4% and finance costs increased by 4.7% YoY, respectively.
• Other income declined by 18.5% YoY.
• Net profit for the year grew by 38.0% YoY.
• Net profit margins during the year grew from 5.6% in FY23 to 6.7% in FY24.

SUNSHIELD CH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,448	2,834	15.8%
Other income	Rs m	18	15	-18.5%
Total Revenues	Rs m	2,466	2,849	15.5%
Gross profit	Rs m	312	404	29.8%
Depreciation	Rs m	64	74	14.4%
Interest	Rs m	74	78	4.7%
Profit before tax	Rs m	191	267	40.1%
Tax	Rs m	54	79	45.7%
Profit after tax	Rs m	137	188	38.0%
Gross profit margin	%	12.7	14.3
Effective tax rate	%	28.4	29.5
Net profit margin	%	5.6	6.7

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SUNSHIELD CH Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1 billion as compared to Rs 630 million in FY23, thereby witnessing an increase of 90.8%.
• Long-term debt down at Rs 161 million as compared to Rs 411 million during FY23, a fall of 60.8%.
• Current assets rose 14% and stood at Rs 1 billion, while fixed assets rose 46% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 2 billion as against Rs 2 billion during FY23, thereby witnessing a growth of 29%.

SUNSHIELD CH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	660	822	24.5
Current Liabilities	Rs m	630	1,201	90.8
Long-term Debt	Rs m	411	161	-60.8
Total Liabilities	Rs m	1,772	2,291	29.3
Current assets	Rs m	928	1,055	13.7
Fixed Assets	Rs m	844	1,236	46.5
Total Assets	Rs m	1,772	2,291	29.3

SUNSHIELD CH Cash Flow Statement Analysis

• SUNSHIELD CH's cash flow from operating activities (CFO) during FY24 stood at Rs 421 million, an improvement of 198.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -403 million, an improvement of 372.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -105 million, an improvement of 0% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -88 million from the Rs -50 million net cash flows seen during FY23.

SUNSHIELD CH 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	141	421	198.0%
Cash Flow from Investing Activities	Rs m	-85	-403	-
Cash Flow from Financing Activities	Rs m	-106	-105	-
Net Cash Flow	Rs m	-50	-88	-

Current Valuations for SUNSHIELD CH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.6, an improvement from the EPS of Rs 18.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,030.1, stands at 40.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.2 times, while the price to sales ratio stands at 2.7 times.
• The company's price to cash flow (P/CF) ratio stood at 22.0 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	333.0	385.5
TTM Earnings per share	Rs	18.6	25.6
Diluted earnings per share	Rs	18.6	25.6
Price to Cash Flow	x	20.8	22.0
TTM P/E ratio	x	30.7	40.2
Price / Book Value ratio	x	6.3	7.0
Market Cap	Rs m	4,141	5,769
Dividends per share (Unadj.)	Rs	2.0	2.4

Ratio Analysis for SUNSHIELD CH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.5x 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 improved and stood at 4.4x during FY24, from 3.6x 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 22.9% during FY24, from 20.7% 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 35.1% during FY24, from 24.8% 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 11.6% during FY24, from 11.9% 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	1.5	0.9
Debtors’ Days	Days	598	617
Interest coverage	x	3.6	4.4
Debt to equity ratio	x	0.6	0.2
Return on assets	%	11.9	11.6
Return on equity	%	20.7	22.9
Return on capital employed	%	24.8	35.1

To see how SUNSHIELD CH has performed over the last 5 years, please visit here.

SUNSHIELD CH Share Price Performance

Over the last one year, SUNSHIELD CH share price has moved up from Rs 942.9 to Rs 1,030.1, registering a gain of Rs 87.2 or around 9.2%.

Overall, the S&P BSE SENSEX is up 20.3% over the year.

(To know more, check out historical annual results for SUNSHIELD CH and quarterly results for SUNSHIELD CH)