SUNDARAM FINANCE HOLDINGS 2023-24 Annual Report Analysis

Thu, 27 Jun

SUNDARAM FINANCE HOLDINGS 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.

SUNDARAM FINANCE HOLDINGS Income Statement Analysis

• Operating income during the year rose 329.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 712.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 94.6% in FY24 as against 50.0% in FY23.
• Depreciation charges decreased by 73.1% and finance costs decreased by 93.8% YoY, respectively.
• Other income declined by 39.3% YoY.
• Net profit for the year grew by 920.4% YoY.
• Net profit margins during the year grew from 34.8% in FY23 to 82.8% in FY24.

SUNDARAM FINANCE HOLDINGS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	904	3,882	329.2%
Other income	Rs m	35	21	-39.3%
Total Revenues	Rs m	940	3,903	315.4%
Gross profit	Rs m	452	3,672	712.0%
Depreciation	Rs m	16	4	-73.1%
Interest	Rs m	4	0	-93.8%
Profit before tax	Rs m	467	3,688	690.0%
Tax	Rs m	152	473	211.5%
Profit after tax	Rs m	315	3,216	920.4%
Gross profit margin	%	50.0	94.6
Effective tax rate	%	32.5	12.8
Net profit margin	%	34.8	82.8

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SUNDARAM FINANCE HOLDINGS Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 19 million as compared to Rs 217 million in FY23, thereby witnessing an decrease of -91.1%.
• Current assets rose 80% and stood at Rs 9 billion, while fixed assets rose 93% and stood at Rs 61 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 70 billion as against Rs 36 billion during FY23, thereby witnessing a growth of 91%.

SUNDARAM FINANCE HOLDINGS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	35,699	60,214	68.7
Current Liabilities	Rs m	217	19	-91.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	36,345	69,504	91.2
Current assets	Rs m	4,792	8,617	79.8
Fixed Assets	Rs m	31,553	60,887	93.0
Total Assets	Rs m	36,345	69,504	91.2

SUNDARAM FINANCE HOLDINGS Cash Flow Statement Analysis

• SUNDARAM FINANCE HOLDINGS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 24.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs 21 million net cash flows seen during FY23.

SUNDARAM FINANCE HOLDINGS 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	1,002	1,252	24.9%
Cash Flow from Investing Activities	Rs m	-252	1,377	-
Cash Flow from Financing Activities	Rs m	-729	-1,001	-
Net Cash Flow	Rs m	21	1,628	7,787.5%

Current Valuations for SUNDARAM FINANCE HOLDINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.5, an improvement from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 268.6, stands at 31.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 15.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	4.1	17.5
TTM Earnings per share	Rs	1.4	14.5
Diluted earnings per share	Rs	1.4	14.5
Price to Cash Flow	x	0.0	13.1
TTM P/E ratio	x	0.0	31.0
Price / Book Value ratio	x	0.5	0.7
Market Cap	Rs m	18,912	42,039
Dividends per share (Unadj.)	Rs	4.0	7.7

Ratio Analysis for SUNDARAM FINANCE HOLDINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 446.3x during FY24, from 22.0x 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 13,662.0x during FY24, from 108.3x 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 5.3% during FY24, from 0.9% 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 6.1% during FY24, from 1.3% 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 4.6% during FY24, from 0.9% 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	22.0	446.3
Debtors’ Days	Days	279	9
Interest coverage	x	108.3	13,662.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	0.9	4.6
Return on equity	%	0.9	5.3
Return on capital employed	%	1.3	6.1

To see how SUNDARAM FINANCE HOLDINGS has performed over the last 5 years, please visit here.

SUNDARAM FINANCE HOLDINGS Share Price Performance

Over the last one year, SUNDARAM FINANCE HOLDINGS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.1% over the year.

(To know more, check out historical annual results for SUNDARAM FINANCE HOLDINGS and quarterly results for SUNDARAM FINANCE HOLDINGS)