STERLITE TECH 2023-24 Annual Report Analysis

Mon, 8 Jul

STERLITE TECH 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.

STERLITE TECH Income Statement Analysis

• Operating income during the year fell 20.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 35.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.5% in FY24 as against 12.9% in FY23.
• Depreciation charges increased by 8.4% and finance costs increased by 18.6% YoY, respectively.
• Other income grew by 39.0% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3.3% in FY23 to 1.2% in FY24.

STERLITE TECH Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	69,250	54,780	-20.9%
Other income	Rs m	410	570	39.0%
Total Revenues	Rs m	69,660	55,350	-20.5%
Gross profit	Rs m	8,940	5,740	-35.8%
Depreciation	Rs m	3,090	3,350	8.4%
Interest	Rs m	3,110	3,690	18.6%
Profit before tax	Rs m	3,150	-730	NA
Tax	Rs m	840	-90	NA
Profit after tax	Rs m	2,310	-640	NA
Gross profit margin	%	12.9	10.5
Effective tax rate	%	26.7	12.3
Net profit margin	%	3.3	-1.2

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STERLITE TECH Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 52 billion as compared to Rs 55 billion in FY23, thereby witnessing an decrease of -6.3%.
• Long-term debt down at Rs 10 billion as compared to Rs 10 billion during FY23, a fall of 1.1%.
• Current assets fell 11% and stood at Rs 46 billion, while fixed assets fell 1% and stood at Rs 35 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 82 billion as against Rs 88 billion during FY23, thereby witnessing a fall of 7%.

STERLITE TECH Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	20,660	20,090	-2.8
Current Liabilities	Rs m	55,290	51,800	-6.3
Long-term Debt	Rs m	10,020	9,910	-1.1
Total Liabilities	Rs m	87,880	81,850	-6.9
Current assets	Rs m	51,960	46,430	-10.6
Fixed Assets	Rs m	35,820	35,420	-1.1
Total Assets	Rs m	87,880	81,850	-6.9

STERLITE TECH Cash Flow Statement Analysis

• STERLITE TECH's cash flow from operating activities (CFO) during FY24 stood at Rs 8 billion, an improvement of 246.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 266.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -7 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -1 billion from the Rs 400 million net cash flows seen during FY23.

STERLITE TECH 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	2,280	7,910	246.9%
Cash Flow from Investing Activities	Rs m	-570	-2,090	-
Cash Flow from Financing Activities	Rs m	-1,320	-6,910	-
Net Cash Flow	Rs m	400	-1,110	-

Current Valuations for STERLITE TECH

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.6, an decline from the EPS of Rs 5.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 139.2, stands at -99.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 21.3 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	173.7	137.3
TTM Earnings per share	Rs	5.8	-1.6
Diluted earnings per share	Rs	4.7	-1.3
Price to Cash Flow	x	13.3	21.3
TTM P/E ratio	x	31.8	-99.8
Price / Book Value ratio	x	3.6	2.9
Market Cap	Rs m	74,036	57,672
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for STERLITE TECH

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 0.9x 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 deteriorated and stood at 0.8x during FY24, from 2.0x 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 -3.2% during FY24, from 11.2% 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 declined and down at 9.9% during FY24, from 20.4% 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 declined and down at 3.7% during FY24, from 6.2% 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	0.9	0.9
Debtors’ Days	Days	10	11
Interest coverage	x	2.0	0.8
Debt to equity ratio	x	0.5	0.5
Return on assets	%	6.2	3.7
Return on equity	%	11.2	-3.2
Return on capital employed	%	20.4	9.9

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

STERLITE TECH Share Price Performance

Over the last one year, STERLITE TECH share price has moved down from Rs 148.8 to Rs 139.2, registering a loss of Rs 9.6 or around 6.5%.

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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