SIYARAM SILK 2023-24 Annual Report Analysis

Thu, 4 Jul

SIYARAM SILK 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.

SIYARAM SILK Income Statement Analysis

• Operating income during the year fell 6.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.6% in FY24 as against 16.5% in FY23.
• Depreciation charges decreased by 4.8% and finance costs increased by 2.8% YoY, respectively.
• Other income declined by 6.6% YoY.
• Net profit for the year declined by 26.4% YoY.
• Net profit margins during the year declined from 11.2% in FY23 to 8.8% in FY24.

SIYARAM SILK Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	22,325	20,921	-6.3%
Other income	Rs m	403	376	-6.6%
Total Revenues	Rs m	22,728	21,297	-6.3%
Gross profit	Rs m	3,684	2,852	-22.6%
Depreciation	Rs m	582	554	-4.8%
Interest	Rs m	197	203	2.8%
Profit before tax	Rs m	3,308	2,472	-25.3%
Tax	Rs m	798	624	-21.8%
Profit after tax	Rs m	2,510	1,848	-26.4%
Gross profit margin	%	16.5	13.6
Effective tax rate	%	24.1	25.2
Net profit margin	%	11.2	8.8

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SIYARAM SILK Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 5 billion as compared to Rs 5 billion in FY23, thereby witnessing an decrease of -8.5%.
• Long-term debt down at Rs 12 million as compared to Rs 92 million during FY23, a fall of 87.1%.
• Current assets fell 4% and stood at Rs 11 billion, while fixed assets fell 1% and stood at Rs 5 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 17 billion as against Rs 17 billion during FY23, thereby witnessing a fall of 3%.

SIYARAM SILK Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	11,369	11,370	0.0
Current Liabilities	Rs m	4,982	4,558	-8.5
Long-term Debt	Rs m	92	12	-87.1
Total Liabilities	Rs m	17,208	16,654	-3.2
Current assets	Rs m	11,869	11,349	-4.4
Fixed Assets	Rs m	5,339	5,305	-0.6
Total Assets	Rs m	17,208	16,654	-3.2

SIYARAM SILK Cash Flow Statement Analysis

• SIYARAM SILK's cash flow from operating activities (CFO) during FY24 stood at Rs 1 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 682 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 28 million from the Rs -1 million net cash flows seen during FY23.

SIYARAM SILK 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	2,353	1,286	-45.4%
Cash Flow from Investing Activities	Rs m	-1,130	682	-
Cash Flow from Financing Activities	Rs m	-1,225	-1,939	-
Net Cash Flow	Rs m	-1	28	-

Current Valuations for SIYARAM SILK

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.7, an decline from the EPS of Rs 53.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 510.9, stands at 12.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.1 times.
• The company's price to cash flow (P/CF) ratio stood at 9.9 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	476.3	461.1
TTM Earnings per share	Rs	53.5	40.7
Diluted earnings per share	Rs	55.3	40.7
Price to Cash Flow	x	6.1	9.9
TTM P/E ratio	x	7.5	12.5
Price / Book Value ratio	x	2.3	2.1
Market Cap	Rs m	25,732	23,861
Dividends per share (Unadj.)	Rs	11.0	11.0

Ratio Analysis for SIYARAM SILK

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY24, from 2.4x 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 13.2x during FY24, from 17.8x 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 16.2% during FY24, from 22.1% 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 declined and down at 23.5% during FY24, from 30.6% 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 12.3% during FY24, from 15.7% 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	2.4	2.5
Debtors’ Days	Days	698	816
Interest coverage	x	17.8	13.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	15.7	12.3
Return on equity	%	22.1	16.2
Return on capital employed	%	30.6	23.5

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

SIYARAM SILK Share Price Performance

Over the last one year, SIYARAM SILK share price has moved down from Rs 538.2 to Rs 510.9, registering a loss of Rs 27.3 or around 5.1%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

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