SUPREME POWER EQUIPMENT LTD. 2023-24 Annual Report Analysis

Wed, 18 Sep

SUPREME POWER EQUIPMENT 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.

SUPREME POWER EQUIPMENT LTD. Income Statement Analysis

• Operating income during the year rose 13.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 20.4% in FY24 as against 18.2% in FY23.
• Depreciation charges increased by 22.9% and finance costs increased by 19.9% YoY, respectively.
• Other income declined by 13.4% YoY.
• Net profit for the year grew by 29.0% YoY.
• Net profit margins during the year grew from 11.1% in FY23 to 12.6% in FY24.

SUPREME POWER EQUIPMENT LTD. Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	998	1,135	13.7%
Other income	Rs m	1	1	-13.4%
Total Revenues	Rs m	999	1,136	13.7%
Gross profit	Rs m	182	232	27.8%
Depreciation	Rs m	3	4	22.9%
Interest	Rs m	27	32	19.9%
Profit before tax	Rs m	153	197	28.9%
Tax	Rs m	42	54	28.3%
Profit after tax	Rs m	111	143	29.0%
Gross profit margin	%	18.2	20.4
Effective tax rate	%	27.7	27.6
Net profit margin	%	11.1	12.6

Dear Reader: If You Invest in Midcap Stocks, this is for You

SUPREME POWER EQUIPMENT LTD. Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 394 million as compared to Rs 425 million in FY23, thereby witnessing an decrease of -7.3%.
• Long-term debt down at Rs 38 million as compared to Rs 46 million during FY23, a fall of 16.3%.
• Current assets rose 49% and stood at Rs 918 million, while fixed assets rose 297% and stood at Rs 291 million in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 1 billion as against Rs 690 million during FY23, thereby witnessing a growth of 75%.

SUPREME POWER EQUIPMENT LTD. Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	181	739	309.2
Current Liabilities	Rs m	425	394	-7.3
Long-term Debt	Rs m	46	38	-16.3
Total Liabilities	Rs m	690	1,209	75.1
Current assets	Rs m	617	918	48.7
Fixed Assets	Rs m	73	291	297.5
Total Assets	Rs m	690	1,209	75.1

SUPREME POWER EQUIPMENT LTD. Cash Flow Statement Analysis

• SUPREME POWER EQUIPMENT LTD.'s cash flow from operating activities (CFO) during FY24 stood at Rs -107 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -222 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 274 million, an improvement of 7,506% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -55 million from the Rs 51 million net cash flows seen during FY23.

SUPREME POWER EQUIPMENT 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	53	-107	-
Cash Flow from Investing Activities	Rs m	2	-222	-
Cash Flow from Financing Activities	Rs m	-4	274	-
Net Cash Flow	Rs m	51	-55	-

Current Valuations for SUPREME POWER EQUIPMENT LTD.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.7, an decline from the EPS of Rs 277.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 231.4, stands at 40.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.8 times, while the price to sales ratio stands at 5.1 times.
• The company's price to cash flow (P/CF) ratio stood at 24.7 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	2,494.0	45.4
TTM Earnings per share	Rs	277.0	5.7
Diluted earnings per share	Rs	4.4	5.7
Price to Cash Flow	x	0.0	24.7
TTM P/E ratio	x	0.0	40.4
Price / Book Value ratio	x	0.0	4.9
Market Cap	Rs m	0	3,624
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUPREME POWER EQUIPMENT LTD.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY24, from 1.4x 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 7.2x during FY24, from 6.7x 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 19.3% during FY24, from 61.4% 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 29.5% during FY24, from 79.5% 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 14.5% during FY24, from 19.9% 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	1.4	2.3
Debtors’ Days	Days	1,193	2,112
Interest coverage	x	6.7	7.2
Debt to equity ratio	x	0.3	0.1
Return on assets	%	19.9	14.5
Return on equity	%	61.4	19.3
Return on capital employed	%	79.5	29.5

To see how SUPREME POWER EQUIPMENT LTD. has performed over the last 5 years, please visit here.

SUPREME POWER EQUIPMENT LTD. Share Price Performance

Over the last one year, SUPREME POWER EQUIPMENT LTD. 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 up 0.1% over the year.

(To know more, check out historical annual results for SUPREME POWER EQUIPMENT LTD. and quarterly results for SUPREME POWER EQUIPMENT LTD.)