STEEL STRIPS WHEELS 2023-24 Annual Report Analysis

Mon, 14 Oct

STEEL STRIPS WHEELS 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.

STEEL STRIPS WHEELS Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 111.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 21.5% in FY24 as against 11.0% in FY23.
• Depreciation charges increased by 29.6% and finance costs increased by 22.9% YoY, respectively.
• Other income grew by 10.1% YoY.
• Net profit for the year grew by 248.1% YoY.
• Net profit margins during the year grew from 4.8% in FY23 to 15.5% in FY24.

STEEL STRIPS WHEELS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	40,405	43,571	7.8%
Other income	Rs m	124	137	10.1%
Total Revenues	Rs m	40,529	43,708	7.8%
Gross profit	Rs m	4,428	9,367	111.5%
Depreciation	Rs m	804	1,042	29.6%
Interest	Rs m	835	1,027	22.9%
Profit before tax	Rs m	2,912	7,434	155.3%
Tax	Rs m	974	687	-29.4%
Profit after tax	Rs m	1,938	6,747	248.1%
Gross profit margin	%	11.0	21.5
Effective tax rate	%	33.5	9.2
Net profit margin	%	4.8	15.5

Don't Miss: Key Information for Long-term Investors

STEEL STRIPS WHEELS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 12 billion in FY23, thereby witnessing an increase of 9.1%.
• Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY23, a growth of 136.8%.
• Current assets rose 2% and stood at Rs 12 billion, while fixed assets rose 31% and stood at Rs 21 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 33 billion as against Rs 28 billion during FY23, thereby witnessing a growth of 19%.

STEEL STRIPS WHEELS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,304	14,393	27.3
Current Liabilities	Rs m	12,152	13,254	9.1
Long-term Debt	Rs m	1,610	3,814	136.8
Total Liabilities	Rs m	27,814	33,036	18.8
Current assets	Rs m	11,783	12,020	2.0
Fixed Assets	Rs m	16,031	21,017	31.1
Total Assets	Rs m	27,814	33,036	18.8

STEEL STRIPS WHEELS Cash Flow Statement Analysis

• STEEL STRIPS WHEELS's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -4 billion, an improvement of 185.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 173% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -11 million from the Rs -139 million net cash flows seen during FY23.

STEEL STRIPS WHEELS 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	3,481	1,929	-44.6%
Cash Flow from Investing Activities	Rs m	-1,279	-3,650	-
Cash Flow from Financing Activities	Rs m	-2,341	1,710	-
Net Cash Flow	Rs m	-139	-11	-

Current Valuations for STEEL STRIPS WHEELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 43.0, an improvement from the EPS of Rs 12.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 212.6, stands at 5.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	258.2	277.6
TTM Earnings per share	Rs	12.4	43.0
Diluted earnings per share	Rs	12.3	43.0
Price to Cash Flow	x	8.5	4.5
TTM P/E ratio	x	12.0	5.0
Price / Book Value ratio	x	2.2	2.4
Market Cap	Rs m	24,720	34,921
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for STEEL STRIPS WHEELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 1.0x 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 8.2x during FY24, from 4.5x 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 46.9% during FY24, from 17.1% 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 46.5% during FY24, from 29.0% 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 23.5% during FY24, from 10.0% 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	1.0	0.9
Debtors’ Days	Days	315	368
Interest coverage	x	4.5	8.2
Debt to equity ratio	x	0.1	0.3
Return on assets	%	10.0	23.5
Return on equity	%	17.1	46.9
Return on capital employed	%	29.0	46.5

To see how STEEL STRIPS WHEELS has performed over the last 5 years, please visit here.

STEEL STRIPS WHEELS Share Price Performance

Over the last one year, STEEL STRIPS WHEELS share price has moved down from Rs 285.2 to Rs 212.6, registering a loss of Rs 72.7 or around 25.5%.

Overall, the S&P BSE SENSEX is up 24.1% over the year.

(To know more, check out historical annual results for STEEL STRIPS WHEELS and quarterly results for STEEL STRIPS WHEELS)