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SG MART 2022-23 Annual Report Analysis

Wed, 7 Feb

SG MART 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.

SG MART Income Statement Analysis

• Operating income during the year rose 4113.5% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 48.6% in FY23 as against 448.6% in FY22.
• Depreciation charges increased by 0.0% and finance costs decreased by 100.0% YoY, respectively.
• Other income grew by 77.0% YoY.
• Net profit for the year declined by 34.6% YoY.
• Net profit margins during the year declined from 812.7% in FY22 to 12.6% in FY23.

SG MART Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	0	16	4,113.5%
Other income	Rs m	6	10	77.0%
Total Revenues	Rs m	6	26	319.5%
Gross profit	Rs m	-2	-8	NA
Depreciation	Rs m	0	0	0.0%
Interest	Rs m	0	0	-100.0%
Profit before tax	Rs m	4	3	-34.7%
Tax	Rs m	1	1	-35.2%
Profit after tax	Rs m	3	2	-34.6%
Gross profit margin	%	-448.6	-48.6
Effective tax rate	%	26.4	26.2
Net profit margin	%	812.7	12.6

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SG MART Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 0 million as compared to Rs 16 million in FY22, thereby witnessing an decrease of -99.0%.
• Current assets fell 11% and stood at Rs 121 million, while fixed assets rose 538% and stood at Rs 1 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 122 million as against Rs 136 million during FY22, thereby witnessing a fall of 10%.

SG MART Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	120	122	1.6
Current Liabilities	Rs m	16	0	-99.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	136	122	-10.5
Current assets	Rs m	136	121	-10.8
Fixed Assets	Rs m	0	1	537.5
Total Assets	Rs m	136	122	-10.5

SG MART Cash Flow Statement Analysis

• SG MART's cash flow from operating activities (CFO) during FY23 stood at Rs 44 million, an improvement of 245.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 57 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 101 million from the Rs -24 million net cash flows seen during FY22.

SG MART 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	13	44	245.9%
Cash Flow from Investing Activities	Rs m	-36	57	-
Cash Flow from Financing Activities	Rs m	-1	0	-
Net Cash Flow	Rs m	-24	101	-

Current Valuations for SG MART

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 2.0, an decline from the EPS of Rs 3.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 517.4, stands at 1,428.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.7 times, while the price to sales ratio stands at 33.2 times.
• The company's price to cash flow (P/CF) ratio stood at 235.2 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	0.4	15.6
TTM Earnings per share	Rs	3.0	2.0
Diluted earnings per share	Rs	0.5	0.4
Price to Cash Flow	x	796.9	235.2
TTM P/E ratio	x	799.3	1,428.5
Price / Book Value ratio	x	3.1	3.8
Market Cap	Rs m	373	464
Dividends per share (Unadj.)	Rs	8.7	8.9

Ratio Analysis for SG MART

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 808.8x during FY23, from 8.6x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 1.6% during FY23, from 2.5% 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 2.2% 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 1.6% during FY23, from 2.2% 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	8.6	808.8
Debtors’ Days	Days	0	0
Interest coverage	x	103.3	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.2	1.6
Return on equity	%	2.5	1.6
Return on capital employed	%	3.4	2.2

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

SG MART Share Price Performance

Over the last one year, SG MART share price has moved up from Rs 430.0 to Rs 517.4, registering a gain of Rs 87.5 or around 20.3%.

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

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