STEELCAST 2023-24 Annual Report Analysis

Wed, 24 Jul

STEELCAST 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.

STEELCAST Income Statement Analysis

• Operating income during the year fell 14.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.7% in FY24 as against 24.0% in FY23.
• Depreciation charges decreased by 1.2% and finance costs decreased by 63.8% YoY, respectively.
• Other income grew by 48.4% YoY.
• Net profit for the year grew by 6.3% YoY.
• Net profit margins during the year grew from 14.8% in FY23 to 18.3% in FY24.

STEELCAST Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,768	4,098	-14.1%
Other income	Rs m	18	27	48.4%
Total Revenues	Rs m	4,787	4,125	-13.8%
Gross profit	Rs m	1,144	1,174	2.7%
Depreciation	Rs m	181	179	-1.2%
Interest	Rs m	35	13	-63.8%
Profit before tax	Rs m	945	1,009	6.8%
Tax	Rs m	240	259	8.1%
Profit after tax	Rs m	705	750	6.3%
Gross profit margin	%	24.0	28.7
Effective tax rate	%	25.4	25.7
Net profit margin	%	14.8	18.3

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STEELCAST Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 444 million as compared to Rs 816 million in FY23, thereby witnessing an decrease of -45.6%.
• Current assets rose 12% and stood at Rs 2 billion, while fixed assets rose 0% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 3 billion as against Rs 3 billion during FY23, thereby witnessing a growth of 6%.

STEELCAST Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	2,152	2,696	25.3
Current Liabilities	Rs m	816	444	-45.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,050	3,236	6.1
Current assets	Rs m	1,478	1,657	12.1
Fixed Assets	Rs m	1,572	1,580	0.5
Total Assets	Rs m	3,050	3,236	6.1

STEELCAST Cash Flow Statement Analysis

• STEELCAST's cash flow from operating activities (CFO) during FY24 stood at Rs 680 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -237 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -446 million, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -2 million from the Rs 1 million net cash flows seen during FY23.

STEELCAST 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	1,073	680	-36.6%
Cash Flow from Investing Activities	Rs m	-532	-237	-
Cash Flow from Financing Activities	Rs m	-540	-446	-
Net Cash Flow	Rs m	1	-2	-

Current Valuations for STEELCAST

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 37.1, an improvement from the EPS of Rs 34.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 651.2, stands at 17.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.9 times, while the price to sales ratio stands at 3.2 times.
• The company's price to cash flow (P/CF) ratio stood at 13.4 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	235.6	202.5
TTM Earnings per share	Rs	34.8	37.1
Diluted earnings per share	Rs	34.8	37.1
Price to Cash Flow	x	10.4	13.4
TTM P/E ratio	x	13.1	17.6
Price / Book Value ratio	x	4.0	4.6
Market Cap	Rs m	8,534	12,498
Dividends per share (Unadj.)	Rs	9.9	7.2

Ratio Analysis for STEELCAST

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.7x 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 80.1x during FY24, from 27.8x 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 27.8% during FY24, from 32.8% 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 37.9% during FY24, from 45.6% 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 23.6% during FY24, from 24.3% 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	3.7
Debtors’ Days	Days	587	831
Interest coverage	x	27.8	80.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	24.3	23.6
Return on equity	%	32.8	27.8
Return on capital employed	%	45.6	37.9

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

STEELCAST Share Price Performance

Over the last one year, STEELCAST share price has moved up from Rs 476.6 to Rs 651.2, registering a gain of Rs 174.6 or around 36.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 31,702.2 (up 0.5%). Over the last one year it has moved up from 21,065.4 to 31,702.2, a gain of 10,637 points (up 50.5%).

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

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