SASTASUNDAR VENTURES 2022-23 Annual Report Analysis

Fri, 31 Mar

SASTASUNDAR VENTURES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during the year 2022-23.

SASTASUNDAR VENTURES Income Statement Analysis

• Interest income during the year rose 64.7% on a year-on-year (YoY) basis.
• Interest expenses were down by 42.0% YoY during the same period.
• Operating expenses increased by 59.6% YoY during the year.
• The company's net interest income (NII) increased by 65.2% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 166.1% in FY23 as against 78.8% in FY22.
• Other income increased by 103.2% YoY during the year.
• Net profit for the year declined by 111.5% YoY.
• Net profit margins during the year declined to -6.9% in FY23 from 99.3% in FY22.

SASTASUNDAR VENTURES Income Statement – 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Interest Income	Rs m	6,314	10,398	64.7%
Other Income	Rs m	116	236	103.2%
Interest Expense	Rs m	33	19	-42.0%
Net Interest Income	Rs m	6,281	10,379	65.2%
Operating Expense	Rs m	6,784	10,827	59.6%
Pre-provision Operating Profit	Rs m	-387	-212	45.2%
Provisions & Contingencies	Rs m	1,996	2,854	43.0%
Profit before tax	Rs m	11,095	-1,223	-111.0%
Tax	Rs m	2,444	-228	-109.3%
Profit after tax	Rs m	6,268	-722	-111.5%
Minority Interest	Rs m	-2,383	273	111.4%
Net Interest Margin	%	78.8	166.1
Net profit margin	%	99.3	-6.9

5 PM TODAY: Golden Buying Window to Ride India's Potentially Decade-Long $10 Trillion Bull Run...

SASTASUNDAR VENTURES Balance Sheet Analysis

• The company's deposits during FY23 stood at Rs 0 m as compared to Rs 0 m in FY22, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 0 m as compared to Rs 0 m during FY22, a rise of 0.0%.
• Cost of deposits for SASTASUNDAR VENTURES rose 38.4% and stood at 19.1%, while yield on advances rose to 0.0%.
• The lender's investments fell to Rs 6.2 bn during the year from Rs 8.0 bn in FY22.
• Borrowing stood at Rs 0 m, a growth of 0.0% as compared to previous year.
• Overall, the total assets and liabilities for FY23 stood at Rs 12.0 bn as against Rs 12.8 bn during FY22, thereby witnessing a fall of 5.8%.

SASTASUNDAR VENTURES Balance Sheet – as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,215	7,484	-8.9%
Advances	Rs m	0	0	0.0%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	13.8	19.1
Investments	Rs m	7,972	6,249	-21.6%
Borrowings	Rs m	0	0	0.0%
Total Assets	Rs m	12,778	12,041	-5.8%

Current Valuations for SASTASUNDAR VENTURES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -22.7, a decline from the EPS of Rs 197.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 220.2, stands at -14.1 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 0.9 times, while the price to income ratio stands at 1.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Income per share (Unadj.)	Rs	198.5	326.9
Earnings per share (Unadj.)	Rs	197.0	-22.7
Diluted earnings per share	Rs	197.0	-22.7
Avg P/E ratio	Rs	1.8	-14.1
Avg P/ABV ratio	Rs	1.4	0.9
Avg Market Cap	Rs	11,052	10,165
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for SASTASUNDAR VENTURES

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 0.0x during FY23, from 0.0x during FY22. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio increased and stood at 0.00x during FY23, from 0.00x during FY22. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): SASTASUNDAR VENTURES's capital adequacy ratio (CAR) was at 0.0% as on 31 March 2023 as compared to 0.0% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company deteriorated and stood at -9.6% during FY23, from 76.3% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company deteriorated and stood at -6.00% during FY23, from 49.06% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company deteriorated and stood at -15.23% during FY23, from 214.79% during FY22. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. SASTASUNDAR VENTURES's gross NPA ratio stood at 0.0% as of 31 March 2023 compared to 0.0% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of SASTASUNDAR VENTURES was 0.0% in financial year 2023. This compared with 0.0% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Credit/Deposit Ratio	x	0.0	0.0
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	0.0	0.0
Return on Equity	%	76.3	-9.6
Return on Assets	%	49.1	-6.0
Return on Capital Employed	%	214.8	-15.2
% of Gross NPAs	%	0.0	0.0
% of Net NPAs	%	0.0	0.0
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

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

SASTASUNDAR VENTURES Share Price Performance

Over the last one year, SASTASUNDAR VENTURES share price has moved down from Rs 356.4 to Rs 220.2, registering a loss of Rs 136.2 or around 38.2%.

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

(To know more, you can check out historical annual results for SASTASUNDAR VENTURES here and quarterly results for SASTASUNDAR VENTURES here)