SIMPLEX INFRA 2023-24 Annual Report Analysis

Thu, 19 Sep

SIMPLEX INFRA 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.

SIMPLEX INFRA Income Statement Analysis

• Operating income during the year fell 25.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 128.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 2.0% in FY24 as against 0.7% in FY23.
• Depreciation charges decreased by 18.7% and finance costs decreased by 90.5% YoY, respectively.
• Other income declined by 79.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 25.1% in FY23 to 5.2% in FY24.

SIMPLEX INFRA Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	18,738	13,885	-25.9%
Other income	Rs m	880	180	-79.6%
Total Revenues	Rs m	19,619	14,065	-28.3%
Gross profit	Rs m	122	278	128.3%
Depreciation	Rs m	857	697	-18.7%
Interest	Rs m	8,391	795	-90.5%
Profit before tax	Rs m	-8,246	-1,034	NA
Tax	Rs m	-3,536	-311	NA
Profit after tax	Rs m	-4,710	-723	NA
Gross profit margin	%	0.7	2.0
Effective tax rate	%	42.9	30.1
Net profit margin	%	-25.1	-5.2

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

SIMPLEX INFRA Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 101 billion as compared to Rs 100 billion in FY23, thereby witnessing an increase of 0.7%.
• Current assets rose 0% and stood at Rs 89 billion, while fixed assets fell 1% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 95 billion as against Rs 95 billion during FY23, thereby witnessing a fall of 0%.

SIMPLEX INFRA Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	3,007	2,320	-22.9
Current Liabilities	Rs m	100,088	100,774	0.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	94,723	94,698	0.0
Current assets	Rs m	88,462	88,530	0.1
Fixed Assets	Rs m	6,261	6,168	-1.5
Total Assets	Rs m	94,723	94,698	0.0

SIMPLEX INFRA Cash Flow Statement Analysis

• SIMPLEX INFRA's cash flow from operating activities (CFO) during FY24 stood at Rs -827 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 19 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 834 million on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 26 million from the Rs 334 million net cash flows seen during FY23.

SIMPLEX INFRA 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	-4,316	-827	-
Cash Flow from Investing Activities	Rs m	2,053	19	-99.1%
Cash Flow from Financing Activities	Rs m	2,595	834	-67.9%
Net Cash Flow	Rs m	334	26	-92.1%

Current Valuations for SIMPLEX INFRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.6, an improvement from the EPS of Rs -82.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 226.9, stands at 18.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at -159.6 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	327.9	243.0
TTM Earnings per share	Rs	-82.4	-12.6
Diluted earnings per share	Rs	-82.4	-12.6
Price to Cash Flow	x	-0.5	-159.6
TTM P/E ratio	x	-0.4	18.9
Price / Book Value ratio	x	1.3	1.8
Market Cap	Rs m	3,861	4,164
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SIMPLEX INFRA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY24, from 0.9x 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 -0.3x during FY24, from 0.0x 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 -31.2% during FY24, from -156.6% 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 -10.3% during FY24, from 4.8% 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 declined and down at 0.1% during FY24, from 3.9% 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	0.9	0.9
Debtors’ Days	Days	2,679	3,540
Interest coverage	x	0.0	-0.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.9	0.1
Return on equity	%	-156.6	-31.2
Return on capital employed	%	4.8	-10.3

To see how SIMPLEX INFRA has performed over the last 5 years, please visit here.

SIMPLEX INFRA Share Price Performance

Over the last one year, SIMPLEX INFRA share price has moved up from Rs 53.8 to Rs 226.9, registering a gain of Rs 173.1 or around 321.7%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 8,223.2 (down 1.0%). Over the last one year it has moved up from 4,633.6 to 8,223.2, a gain of 3,590 points (up 77.5%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

(To know more, check out historical annual results for SIMPLEX INFRA and quarterly results for SIMPLEX INFRA)