SUNDARAM-CLAYTON LTD. 2023-24 Annual Report Analysis

Tue, 23 Jul

SUNDARAM-CLAYTON LTD. 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-CLAYTON LTD. Income Statement Analysis

• Operating income during the year fell 31.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 72.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.1% in FY24 as against 5.2% in FY23.
• Depreciation charges decreased by 28.2% and finance costs decreased by 4.3% YoY, respectively.
• Other income grew by 232.2% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 5.3% in FY23 to 8.5% in FY24.

SUNDARAM-CLAYTON LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,528	14,153	-31.1%
Other income	Rs m	102	339	232.2%
Total Revenues	Rs m	20,630	14,492	-29.8%
Gross profit	Rs m	1,073	295	-72.5%
Depreciation	Rs m	1,439	1,032	-28.2%
Interest	Rs m	601	575	-4.3%
Profit before tax	Rs m	-865	-974	NA
Tax	Rs m	214	228	6.5%
Profit after tax	Rs m	-1,078	-1,201	NA
Gross profit margin	%	5.2	2.1
Effective tax rate	%	-24.7	-23.4
Net profit margin	%	-5.3	-8.5

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

SUNDARAM-CLAYTON LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 13 billion as compared to Rs 8 billion in FY23, thereby witnessing an increase of 62.4%.
• Long-term debt down at Rs 8 billion as compared to Rs 8 billion during FY23, a fall of 5.5%.
• Current assets fell 2% and stood at Rs 8 billion, while fixed assets rose 17% and stood at Rs 19 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 27 billion as against Rs 24 billion during FY23, thereby witnessing a growth of 11%.

SUNDARAM-CLAYTON LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	7,741	6,002	-22.5
Current Liabilities	Rs m	7,813	12,689	62.4
Long-term Debt	Rs m	7,992	7,555	-5.5
Total Liabilities	Rs m	24,118	26,740	10.9
Current assets	Rs m	7,999	7,825	-2.2
Fixed Assets	Rs m	16,118	18,915	17.4
Total Assets	Rs m	24,118	26,740	10.9

SUNDARAM-CLAYTON LTD. Cash Flow Statement Analysis

• SUNDARAM-CLAYTON LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs 455 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -3 billion, an improvement of 49.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 278% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -811 million from the Rs -199 million net cash flows seen during FY23.

SUNDARAM-CLAYTON LTD. 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	1,262	455	-63.9%
Cash Flow from Investing Activities	Rs m	-1,860	-2,776	-
Cash Flow from Financing Activities	Rs m	400	1,510	277.9%
Net Cash Flow	Rs m	-199	-811	-

Current Valuations for SUNDARAM-CLAYTON LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -59.4, an decline from the EPS of Rs -53.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,763.4, stands at -29.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at -179.3 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	1,014.7	699.6
TTM Earnings per share	Rs	-53.3	-59.4
Diluted earnings per share	Rs	-53.3	-59.4
Price to Cash Flow	x	0.0	-179.3
TTM P/E ratio	x	0.0	-29.7
Price / Book Value ratio	x	0.0	5.0
Market Cap	Rs m	0	30,287
Dividends per share (Unadj.)	Rs	0.0	5.2

Ratio Analysis for SUNDARAM-CLAYTON LTD.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x 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 deteriorated and stood at -0.7x during FY24, from -0.4x 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 declined and down at -20.0% during FY24, from -13.9% 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 declined and down at -2.9% during FY24, from -1.7% 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 -2.3% during FY24, from -2.0% 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	0.6
Debtors’ Days	Days	4	8
Interest coverage	x	-0.4	-0.7
Debt to equity ratio	x	1.0	1.3
Return on assets	%	-2.0	-2.3
Return on equity	%	-13.9	-20.0
Return on capital employed	%	-1.7	-2.9

To see how SUNDARAM-CLAYTON LTD. has performed over the last 5 years, please visit here.

SUNDARAM-CLAYTON LTD. Share Price Performance

Over the last one year, SUNDARAM-CLAYTON LTD. share price has moved up from Rs 0.0 to Rs 1,763.4, registering a gain of Rs 1,763.4 or around 0.0%.

Overall, the S&P BSE SENSEX is up 18.9% over the year.

(To know more, check out historical annual results for SUNDARAM-CLAYTON LTD. and quarterly results for SUNDARAM-CLAYTON LTD.)