SYRMA SGS TECHNOLOGY 2023-24 Annual Report Analysis

Tue, 27 Aug

SYRMA SGS TECHNOLOGY 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.

SYRMA SGS TECHNOLOGY Income Statement Analysis

• Operating income during the year rose 54.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 4.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.4% in FY24 as against 9.3% in FY23.
• Depreciation charges increased by 65.0% and finance costs increased by 60.6% YoY, respectively.
• Other income grew by 32.0% YoY.
• Net profit for the year grew by 1.0% YoY.
• Net profit margins during the year declined from 6.0% in FY23 to 3.9% in FY24.

SYRMA SGS TECHNOLOGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	20,484	31,538	54.0%
Other income	Rs m	444	586	32.0%
Total Revenues	Rs m	20,928	32,124	53.5%
Gross profit	Rs m	1,912	2,006	4.9%
Depreciation	Rs m	312	515	65.0%
Interest	Rs m	257	413	60.6%
Profit before tax	Rs m	1,787	1,664	-6.9%
Tax	Rs m	556	421	-24.3%
Profit after tax	Rs m	1,231	1,243	1.0%
Gross profit margin	%	9.3	6.4
Effective tax rate	%	31.1	25.3
Net profit margin	%	6.0	3.9

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SYRMA SGS TECHNOLOGY Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 19 billion as compared to Rs 10 billion in FY23, thereby witnessing an increase of 99.1%.
• Long-term debt down at Rs 645 million as compared to Rs 870 million during FY23, a fall of 25.9%.
• Current assets rose 77% and stood at Rs 23 billion, while fixed assets rose 13% and stood at Rs 15 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 39 billion as against Rs 27 billion during FY23, thereby witnessing a growth of 44%.

SYRMA SGS TECHNOLOGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	15,403	16,126	4.7
Current Liabilities	Rs m	9,560	19,036	99.1
Long-term Debt	Rs m	870	645	-25.9
Total Liabilities	Rs m	26,654	38,509	44.5
Current assets	Rs m	13,224	23,350	76.6
Fixed Assets	Rs m	13,430	15,159	12.9
Total Assets	Rs m	26,654	38,509	44.5

SYRMA SGS TECHNOLOGY Cash Flow Statement Analysis

• SYRMA SGS TECHNOLOGY's cash flow from operating activities (CFO) during FY24 stood at Rs -1 billion, an improvement of 61.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -282 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 319 million from the Rs 131 million net cash flows seen during FY23.

SYRMA SGS TECHNOLOGY 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	-703	-1,136	-
Cash Flow from Investing Activities	Rs m	-8,857	-282	-
Cash Flow from Financing Activities	Rs m	9,680	1,547	-84.0%
Net Cash Flow	Rs m	131	319	143.9%

Current Valuations for SYRMA SGS TECHNOLOGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.0, an improvement from the EPS of Rs 7.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 437.1, stands at 66.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.8 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 48.5 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	115.9	177.8
TTM Earnings per share	Rs	7.0	7.0
Diluted earnings per share	Rs	6.9	7.0
Price to Cash Flow	x	30.2	48.5
TTM P/E ratio	x	37.9	66.7
Price / Book Value ratio	x	3.4	5.3
Market Cap	Rs m	52,247	85,258
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for SYRMA SGS TECHNOLOGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 deteriorated and stood at 5.0x during FY24, from 7.9x 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 7.7% during FY24, from 8.0% 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 12.4% during FY24, from 12.6% 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 4.3% during FY24, from 5.6% 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	1.2
Debtors’ Days	Days	72	108
Interest coverage	x	7.9	5.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	5.6	4.3
Return on equity	%	8.0	7.7
Return on capital employed	%	12.6	12.4

To see how SYRMA SGS TECHNOLOGY has performed over the last 5 years, please visit here.

SYRMA SGS TECHNOLOGY Share Price Performance

Over the last one year, SYRMA SGS TECHNOLOGY share price has moved down from Rs 537.9 to Rs 437.1, registering a loss of Rs 100.8 or around 18.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,192.2 (up 1.0%). Over the last one year it has moved up from 43,991.7 to 74,192.2, a gain of 30,200 points (up 68.7%).

Overall, the S&P BSE SENSEX is up 25.1% over the year.

(To know more, check out historical annual results for SYRMA SGS TECHNOLOGY and quarterly results for SYRMA SGS TECHNOLOGY)