SYMPHONY 2023-24 Annual Report Analysis

Tue, 16 Jul

SYMPHONY 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.

SYMPHONY Income Statement Analysis

• Operating income during the year fell 33.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 9.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.2% in FY24 as against 11.8% in FY23.
• Depreciation charges decreased by 79.8% and finance costs decreased by 94.4% YoY, respectively.
• Other income declined by 3.9% YoY.
• Net profit for the year grew by 32.1% YoY.
• Net profit margins during the year grew from 9.8% in FY23 to 19.2% in FY24.

SYMPHONY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	11,876	7,957	-33.0%
Other income	Rs m	502	483	-3.9%
Total Revenues	Rs m	12,378	8,439	-31.8%
Gross profit	Rs m	1,398	1,529	9.3%
Depreciation	Rs m	265	53	-79.8%
Interest	Rs m	116	7	-94.4%
Profit before tax	Rs m	1,519	1,952	28.4%
Tax	Rs m	361	421	16.8%
Profit after tax	Rs m	1,159	1,530	32.1%
Gross profit margin	%	11.8	19.2
Effective tax rate	%	23.7	21.6
Net profit margin	%	9.8	19.2

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SYMPHONY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 2 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -52.1%.
• Current assets fell 45% and stood at Rs 4 billion, while fixed assets fell 14% and stood at Rs 6 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 10 billion as against Rs 14 billion during FY23, thereby witnessing a fall of 30%.

SYMPHONY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	8,809	7,744	-12.1
Current Liabilities	Rs m	4,519	2,163	-52.1
Long-term Debt	Rs m	827	0	-100.0
Total Liabilities	Rs m	14,359	9,983	-30.5
Current assets	Rs m	7,737	4,259	-45.0
Fixed Assets	Rs m	6,622	5,724	-13.6
Total Assets	Rs m	14,359	9,983	-30.5

SYMPHONY Cash Flow Statement Analysis

• SYMPHONY's cash flow from operating activities (CFO) during FY24 stood at Rs 2 billion, an improvement of 55.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 939 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -242 million from the Rs -103 million net cash flows seen during FY23.

SYMPHONY 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	1,251	1,946	55.6%
Cash Flow from Investing Activities	Rs m	-114	939	-
Cash Flow from Financing Activities	Rs m	-1,237	-3,127	-
Net Cash Flow	Rs m	-103	-242	-

Current Valuations for SYMPHONY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 21.9, an improvement from the EPS of Rs 16.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,171.5, stands at 54.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.4 times, while the price to sales ratio stands at 10.3 times.
• The company's price to cash flow (P/CF) ratio stood at 40.6 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	169.7	113.7
TTM Earnings per share	Rs	16.6	21.9
Diluted earnings per share	Rs	16.8	22.2
Price to Cash Flow	x	49.2	40.6
TTM P/E ratio	x	60.4	54.6
Price / Book Value ratio	x	8.1	8.3
Market Cap	Rs m	71,354	64,252
Dividends per share (Unadj.)	Rs	5.0	13.0

Ratio Analysis for SYMPHONY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.0x during FY24, from 1.7x 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 301.2x during FY24, from 14.1x 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 19.8% during FY24, from 13.2% 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 17.0% 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 15.4% during FY24, from 8.9% 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	1.7	2.0
Debtors’ Days	Days	4	6
Interest coverage	x	14.1	301.2
Debt to equity ratio	x	0.1	0.0
Return on assets	%	8.9	15.4
Return on equity	%	13.2	19.8
Return on capital employed	%	17.0	25.3

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

SYMPHONY Share Price Performance

Over the last one year, SYMPHONY share price has moved up from Rs 875.1 to Rs 1,171.5, registering a gain of Rs 296.4 or around 33.9%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 59,466.5 (up 0.5%). Over the last one year it has moved up from 42,805.6 to 59,466.5, a gain of 16,661 points (up 38.9%).

Overall, the S&P BSE SENSEX is up 23.6% over the year.

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