SATIA INDUSTRIES 2023-24 Annual Report Analysis

Tue, 15 Oct

SATIA INDUSTRIES 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.

SATIA INDUSTRIES Income Statement Analysis

• Operating income during the year fell 8.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 24.3% in FY24 as against 21.9% in FY23.
• Depreciation charges decreased by 26.9% and finance costs decreased by 14.8% YoY, respectively.
• Other income grew by 9.3% YoY.
• Net profit for the year grew by 9.9% YoY.
• Net profit margins during the year grew from 10.2% in FY23 to 12.3% in FY24.

SATIA INDUSTRIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,837	17,208	-8.7%
Other income	Rs m	141	154	9.3%
Total Revenues	Rs m	18,978	17,361	-8.5%
Gross profit	Rs m	4,118	4,187	1.7%
Depreciation	Rs m	2,071	1,514	-26.9%
Interest	Rs m	352	300	-14.8%
Profit before tax	Rs m	1,835	2,527	37.7%
Tax	Rs m	-87	415	NA
Profit after tax	Rs m	1,922	2,112	9.9%
Gross profit margin	%	21.9	24.3
Effective tax rate	%	-4.7	16.4
Net profit margin	%	10.2	12.3

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SATIA INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 3 billion as compared to Rs 3 billion in FY23, thereby witnessing an decrease of -14.5%.
• Long-term debt down at Rs 2 billion as compared to Rs 3 billion during FY23, a fall of 39.7%.
• Current assets rose 0% and stood at Rs 4 billion, while fixed assets rose 3% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 14 billion as against Rs 13 billion during FY23, thereby witnessing a growth of 2%.

SATIA INDUSTRIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,332	9,323	27.2
Current Liabilities	Rs m	2,992	2,557	-14.5
Long-term Debt	Rs m	2,578	1,555	-39.7
Total Liabilities	Rs m	13,400	13,677	2.1
Current assets	Rs m	4,398	4,418	0.5
Fixed Assets	Rs m	9,002	9,259	2.9
Total Assets	Rs m	13,400	13,677	2.1

SATIA INDUSTRIES Cash Flow Statement Analysis

• SATIA INDUSTRIES's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 28.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -5 million from the Rs -6 million net cash flows seen during FY23.

SATIA INDUSTRIES 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	2,821	3,623	28.4%
Cash Flow from Investing Activities	Rs m	-1,944	-1,711	-
Cash Flow from Financing Activities	Rs m	-883	-1,917	-
Net Cash Flow	Rs m	-6	-5	-

Current Valuations for SATIA INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.1, an improvement from the EPS of Rs 19.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.1, stands at 6.3 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 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 3.6 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	188.4	172.1
TTM Earnings per share	Rs	19.2	21.1
Diluted earnings per share	Rs	19.2	21.1
Price to Cash Flow	x	2.6	3.6
TTM P/E ratio	x	5.5	6.3
Price / Book Value ratio	x	1.8	1.4
Market Cap	Rs m	13,268	12,998
Dividends per share (Unadj.)	Rs	0.4	1.0

Ratio Analysis for SATIA INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x 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 9.4x during FY24, from 6.2x 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 22.7% during FY24, from 26.2% 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 26.0% during FY24, from 22.1% 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 17.6% during FY24, from 17.0% 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	1.7
Debtors’ Days	Days	371	346
Interest coverage	x	6.2	9.4
Debt to equity ratio	x	0.4	0.2
Return on assets	%	17.0	17.6
Return on equity	%	26.2	22.7
Return on capital employed	%	22.1	26.0

To see how SATIA INDUSTRIES has performed over the last 5 years, please visit here.

SATIA INDUSTRIES Share Price Performance

Over the last one year, SATIA INDUSTRIES share price has moved down from Rs 133.4 to Rs 112.1, registering a loss of Rs 21.3 or around 16.0%.

Overall, the S&P BSE SENSEX is up 23.1% over the year.

(To know more, check out historical annual results for SATIA INDUSTRIES and quarterly results for SATIA INDUSTRIES)