SML ISUZU 2023-24 Annual Report Analysis

Tue, 3 Sep

SML ISUZU 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.

SML ISUZU Income Statement Analysis

• Operating income during the year rose 20.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 119.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 8.1% in FY24 as against 4.5% in FY23.
• Depreciation charges increased by 12.0% and finance costs increased by 21.2% YoY, respectively.
• Other income grew by 73.5% YoY.
• Net profit for the year grew by 443.9% YoY.
• Net profit margins during the year grew from 1.1% in FY23 to 4.9% in FY24.

SML ISUZU Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,216	21,959	20.6%
Other income	Rs m	31	54	73.5%
Total Revenues	Rs m	18,247	22,013	20.6%
Gross profit	Rs m	816	1,789	119.2%
Depreciation	Rs m	424	475	12.0%
Interest	Rs m	250	303	21.2%
Profit before tax	Rs m	173	1,065	516.2%
Tax	Rs m	-26	-14	NA
Profit after tax	Rs m	198	1,079	443.9%
Gross profit margin	%	4.5	8.1
Effective tax rate	%	-14.8	-1.3
Net profit margin	%	1.1	4.9

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SML ISUZU Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 8 billion as compared to Rs 7 billion in FY23, thereby witnessing an increase of 19.6%.
• Long-term debt stood at Rs 404 million as compared to Rs 165 million during FY23, a growth of 144.2%.
• Current assets rose 53% and stood at Rs 8 billion, while fixed assets fell 3% and stood at Rs 4 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 12 billion as against Rs 9 billion during FY23, thereby witnessing a growth of 30%.

SML ISUZU Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	1,779	2,856	60.5
Current Liabilities	Rs m	6,850	8,196	19.6
Long-term Debt	Rs m	165	404	144.2
Total Liabilities	Rs m	9,191	11,934	29.9
Current assets	Rs m	5,382	8,246	53.2
Fixed Assets	Rs m	3,809	3,688	-3.2
Total Assets	Rs m	9,191	11,934	29.9

SML ISUZU Cash Flow Statement Analysis

• SML ISUZU's cash flow from operating activities (CFO) during FY24 stood at Rs -497 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -458 million, an improvement of 8.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 1 billion, an improvement of 330% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 313 million from the Rs -72 million net cash flows seen during FY23.

SML ISUZU 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	901	-497	-
Cash Flow from Investing Activities	Rs m	-421	-458	-
Cash Flow from Financing Activities	Rs m	-552	1,268	-
Net Cash Flow	Rs m	-72	313	-

Current Valuations for SML ISUZU

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 74.6, an improvement from the EPS of Rs 13.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,020.0, stands at 23.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.2 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 15.0 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	1,258.9	1,517.6
TTM Earnings per share	Rs	13.7	74.6
Diluted earnings per share	Rs	13.7	74.5
Price to Cash Flow	x	17.1	15.0
TTM P/E ratio	x	53.8	23.9
Price / Book Value ratio	x	5.6	8.2
Market Cap	Rs m	10,006	23,286
Dividends per share (Unadj.)	Rs	0.0	16.0

Ratio Analysis for SML ISUZU

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY24, from 0.8x 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 4.5x during FY24, from 1.7x 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 improved and stood at 37.8% during FY24, from 11.1% 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 42.0% during FY24, from 21.8% 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 11.6% during FY24, from 4.9% 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	0.8	1.0
Debtors’ Days	Days	152	281
Interest coverage	x	1.7	4.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.9	11.6
Return on equity	%	11.1	37.8
Return on capital employed	%	21.8	42.0

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

SML ISUZU Share Price Performance

Over the last one year, SML ISUZU share price has moved up from Rs 1,302.7 to Rs 2,020.0, registering a gain of Rs 717.4 or around 55.1%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 58,997.8 (up 0.1%). Over the last one year it has moved up from 36,075.1 to 58,997.8, a gain of 22,923 points (up 63.5%).

Overall, the S&P BSE SENSEX is up 26.8% over the year.

(To know more, check out historical annual results for SML ISUZU and quarterly results for SML ISUZU)