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SUBROS. 2023-24 Annual Report Analysis

Thu, 29 Aug

SUBROS. 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.

SUBROS. Income Statement Analysis

• Operating income during the year rose 9.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.2% in FY24 as against 6.0% in FY23.
• Depreciation charges increased by 5.6% and finance costs increased by 72.2% YoY, respectively.
• Other income declined by 18.7% YoY.
• Net profit for the year grew by 103.7% YoY.
• Net profit margins during the year grew from 1.7% in FY23 to 3.2% in FY24.

SUBROS. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	28,063	30,706	9.4%
Other income	Rs m	203	165	-18.7%
Total Revenues	Rs m	28,266	30,871	9.2%
Gross profit	Rs m	1,676	2,523	50.5%
Depreciation	Rs m	1,103	1,165	5.6%
Interest	Rs m	68	117	72.2%
Profit before tax	Rs m	709	1,407	98.5%
Tax	Rs m	229	430	87.7%
Profit after tax	Rs m	479	976	103.7%
Gross profit margin	%	6.0	8.2
Effective tax rate	%	32.4	30.6
Net profit margin	%	1.7	3.2

For Investors: Our Big Prediction

SUBROS. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 6 billion in FY23, thereby witnessing an increase of 3.6%.
• Current assets rose 20% and stood at Rs 8 billion, while fixed assets fell 2% and stood at Rs 9 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 16 billion during FY23, thereby witnessing a growth of 8%.

SUBROS. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,673	9,559	10.2
Current Liabilities	Rs m	6,300	6,529	3.6
Long-term Debt	Rs m	47	0	-100.0
Total Liabilities	Rs m	16,497	17,742	7.5
Current assets	Rs m	6,947	8,337	20.0
Fixed Assets	Rs m	9,550	9,405	-1.5
Total Assets	Rs m	16,497	17,742	7.5

SUBROS. Cash Flow Statement Analysis

• SUBROS.'s cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 17.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -915 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -650 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 85 million from the Rs -6 million net cash flows seen during FY23.

SUBROS. 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	1,406	1,650	17.3%
Cash Flow from Investing Activities	Rs m	-1,450	-915	-
Cash Flow from Financing Activities	Rs m	37	-650	-
Net Cash Flow	Rs m	-6	85	-

Current Valuations for SUBROS.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 15.0, an improvement from the EPS of Rs 7.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 805.0, stands at 44.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 15.7 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	430.1	470.7
TTM Earnings per share	Rs	7.3	15.0
Diluted earnings per share	Rs	7.3	15.0
Price to Cash Flow	x	12.4	15.7
TTM P/E ratio	x	42.5	44.1
Price / Book Value ratio	x	2.6	3.5
Market Cap	Rs m	22,152	33,536
Dividends per share (Unadj.)	Rs	1.0	1.8

Ratio Analysis for SUBROS.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY24, from 1.1x 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 13.1x during FY24, from 11.5x 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 10.2% during FY24, from 5.5% 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 15.9% during FY24, from 8.9% 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 6.2% during FY24, from 3.3% 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	1.1	1.3
Debtors’ Days	Days	271	337
Interest coverage	x	11.5	13.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.3	6.2
Return on equity	%	5.5	10.2
Return on capital employed	%	8.9	15.9

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

SUBROS. Share Price Performance

Over the last one year, SUBROS. share price has moved up from Rs 379.4 to Rs 805.0, registering a gain of Rs 425.7 or around 112.2%.

Overall, the S&P BSE SENSEX is up 26.1% over the year.

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