SULA VINEYARDS 2023-24 Annual Report Analysis

Mon, 3 Jun

SULA VINEYARDS 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.

SULA VINEYARDS Income Statement Analysis

• Operating income during the year rose 9.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 11.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 33.4% in FY24 as against 32.8% in FY23.
• Depreciation charges increased by 22.2% and finance costs increased by 24.1% YoY, respectively.
• Other income grew by 121.2% YoY.
• Net profit for the year grew by 11.0% YoY.
• Net profit margins during the year grew from 17.5% in FY23 to 17.7% in FY24.

SULA VINEYARDS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	4,795	5,268	9.9%
Other income	Rs m	35	77	121.2%
Total Revenues	Rs m	4,830	5,345	10.7%
Gross profit	Rs m	1,575	1,759	11.7%
Depreciation	Rs m	259	316	22.2%
Interest	Rs m	211	262	24.1%
Profit before tax	Rs m	1,140	1,258	10.3%
Tax	Rs m	299	325	8.5%
Profit after tax	Rs m	841	933	11.0%
Gross profit margin	%	32.8	33.4
Effective tax rate	%	26.3	25.8
Net profit margin	%	17.5	17.7

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SULA VINEYARDS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 5 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 45.0%.
• Long-term debt down at Rs 518 million as compared to Rs 543 million during FY23, a fall of 4.6%.
• Current assets rose 23% and stood at Rs 6 billion, while fixed assets rose 15% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 11 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 19%.

SULA VINEYARDS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	5,315	5,488	3.3
Current Liabilities	Rs m	3,288	4,768	45.0
Long-term Debt	Rs m	543	518	-4.6
Total Liabilities	Rs m	9,390	11,180	19.1
Current assets	Rs m	4,823	5,946	23.3
Fixed Assets	Rs m	4,567	5,235	14.6
Total Assets	Rs m	9,390	11,180	19.1

SULA VINEYARDS Cash Flow Statement Analysis

• SULA VINEYARDS's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion, an improvement of 34.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -429 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 25 million, an improvement of 126% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 808 million from the Rs 62 million net cash flows seen during FY23.

SULA VINEYARDS 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	899	1,212	34.8%
Cash Flow from Investing Activities	Rs m	-744	-429	-
Cash Flow from Financing Activities	Rs m	-94	25	-
Net Cash Flow	Rs m	62	808	1,209.9%

Current Valuations for SULA VINEYARDS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.1, an improvement from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 513.8, stands at 46.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.9 times, while the price to sales ratio stands at 8.2 times.
• The company's price to cash flow (P/CF) ratio stood at 35.5 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	56.9	62.4
TTM Earnings per share	Rs	10.0	11.1
Diluted earnings per share	Rs	10.0	11.1
Price to Cash Flow	x	28.2	35.5
TTM P/E ratio	x	36.9	46.5
Price / Book Value ratio	x	5.8	8.1
Market Cap	Rs m	31,072	44,341
Dividends per share (Unadj.)	Rs	8.4	8.5

Ratio Analysis for SULA VINEYARDS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY24, from 1.5x 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 5.8x during FY24, from 6.4x 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 17.0% during FY24, from 15.8% 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 improved and stood at 25.3% during FY24, from 23.1% 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 10.7% during FY24, from 11.2% 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	1.5	1.2
Debtors’ Days	Days	9	12
Interest coverage	x	6.4	5.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	11.2	10.7
Return on equity	%	15.8	17.0
Return on capital employed	%	23.1	25.3

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

SULA VINEYARDS Share Price Performance

Over the last one year, SULA VINEYARDS share price has moved up from Rs 431.8 to Rs 513.8, registering a gain of Rs 82.1 or around 19.0%.

Overall, the S&P BSE SENSEX is up 20.7% over the year.

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