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SUNTECK REALTY 2022-23 Annual Report Analysis

Fri, 31 Mar

SUNTECK REALTY has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SUNTECK REALTY Income Statement Analysis

• Operating income during the year fell 29.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 26.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 19.6% in FY23 as against 18.8% in FY22.
• Depreciation charges increased by 26.6% and finance costs increased by 10.7% YoY, respectively.
• Other income grew by 35.7% YoY.
• Net profit for the year declined by 94.4% YoY.
• Net profit margins during the year declined from 4.9% in FY22 to 0.4% in FY23.

SUNTECK REALTY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,131	3,624	-29.4%
Other income	Rs m	209	284	35.7%
Total Revenues	Rs m	5,340	3,909	-26.8%
Gross profit	Rs m	965	712	-26.2%
Depreciation	Rs m	73	92	26.6%
Interest	Rs m	776	859	10.7%
Profit before tax	Rs m	326	45	-86.2%
Tax	Rs m	75	31	-58.8%
Profit after tax	Rs m	251	14	-94.4%
Gross profit margin	%	18.8	19.6
Effective tax rate	%	22.9	68.6
Net profit margin	%	4.9	0.4

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SUNTECK REALTY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 40 billion as compared to Rs 23 billion in FY22, thereby witnessing an increase of 78.3%.
• Long-term debt down at Rs 4 billion as compared to Rs 4 billion during FY22, a fall of 4.4%.
• Current assets rose 33% and stood at Rs 66 billion, while fixed assets rose 16% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 75 billion as against Rs 57 billion during FY22, thereby witnessing a growth of 31%.

SUNTECK REALTY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	27,894	27,872	-0.1
Current Liabilities	Rs m	22,634	40,360	78.3
Long-term Debt	Rs m	4,403	4,208	-4.4
Total Liabilities	Rs m	57,054	74,594	30.7
Current assets	Rs m	49,626	65,941	32.9
Fixed Assets	Rs m	7,428	8,653	16.5
Total Assets	Rs m	57,054	74,594	30.7

SUNTECK REALTY Cash Flow Statement Analysis

• SUNTECK REALTY's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -162 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -155 million from the Rs 335 million net cash flows seen during FY22.

SUNTECK REALTY Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-305	2,620	-
Cash Flow from Investing Activities	Rs m	181	-162	-
Cash Flow from Financing Activities	Rs m	459	-2,614	-
Net Cash Flow	Rs m	335	-155	-

Current Valuations for SUNTECK REALTY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 0.1, an decline from the EPS of Rs 1.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 283.2, stands at -741.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 11.0 times.
• The company's price to cash flow (P/CF) ratio stood at 535.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	36.5	25.8
TTM Earnings per share	Rs	1.8	0.1
Diluted earnings per share	Rs	1.7	0.1
Price to Cash Flow	x	197.1	535.3
TTM P/E ratio	x	266.8	-741.6
Price / Book Value ratio	x	2.1	2.0
Market Cap	Rs m	58,989	56,929
Dividends per share (Unadj.)	Rs	1.5	1.5

Ratio Analysis for SUNTECK REALTY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 2.2x during FY22. 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 1.1x during FY23, from 1.4x during FY22. 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 0.1% during FY23, from 0.9% during FY23. 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 2.8% during FY23, from 3.4% during FY22. 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 1.2% during FY23, from 1.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	2.2	1.6
Debtors’ Days	Days	1,923	1,507
Interest coverage	x	1.4	1.1
Debt to equity ratio	x	0.2	0.2
Return on assets	%	1.8	1.2
Return on equity	%	0.9	0.1
Return on capital employed	%	3.4	2.8

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

SUNTECK REALTY Share Price Performance

Over the last one year, SUNTECK REALTY share price has moved down from Rs 435.6 to Rs 283.2, registering a loss of Rs 152.4 or around 35.0%.

Meanwhile, the S&P BSE REALTY Index is trading at Rs 3,101.6 (up 1.6%). Over the last one year it has moved down from 3,681.8 to 3,101.6, a loss of 580 points (down 15.8%).

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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