SEAMEC 2022-23 Annual Report Analysis

Fri, 21 Jul

SEAMEC 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.

SEAMEC Income Statement Analysis

• Operating income during the year rose 25.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 29.0% in FY23 as against 37.1% in FY22.
• Depreciation charges increased by 33.5% and finance costs increased by 0.9% YoY, respectively.
• Other income declined by 56.6% YoY.
• Net profit for the year declined by 59.9% YoY.
• Net profit margins during the year declined from 23.9% in FY22 to 7.7% in FY23.

SEAMEC Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,496	4,372	25.1%
Other income	Rs m	460	200	-56.6%
Total Revenues	Rs m	3,956	4,572	15.6%
Gross profit	Rs m	1,298	1,268	-2.3%
Depreciation	Rs m	839	1,120	33.5%
Interest	Rs m	71	72	0.9%
Profit before tax	Rs m	848	276	-67.4%
Tax	Rs m	11	-60	NA
Profit after tax	Rs m	837	336	-59.9%
Gross profit margin	%	37.1	29.0
Effective tax rate	%	1.3	-21.6
Net profit margin	%	23.9	7.7

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SEAMEC Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 100.4%.
• Long-term debt down at Rs 474 million as compared to Rs 717 million during FY22, a fall of 34.0%.
• Current assets rose 11% and stood at Rs 3 billion, while fixed assets rose 8% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 9%.

SEAMEC Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,485	7,903	5.6
Current Liabilities	Rs m	1,033	2,069	100.4
Long-term Debt	Rs m	717	474	-34.0
Total Liabilities	Rs m	9,785	10,642	8.8
Current assets	Rs m	2,832	3,137	10.8
Fixed Assets	Rs m	6,953	7,505	7.9
Total Assets	Rs m	9,785	10,642	8.8

SEAMEC Cash Flow Statement Analysis

• SEAMEC's cash flow from operating activities (CFO) during FY23 stood at Rs 533 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -50 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -418 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 70 million from the Rs 131 million net cash flows seen during FY22.

SEAMEC 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	939	533	-43.3%
Cash Flow from Investing Activities	Rs m	-1,269	-50	-
Cash Flow from Financing Activities	Rs m	429	-418	-
Net Cash Flow	Rs m	131	70	-46.6%

Current Valuations for SEAMEC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.2, an decline from the EPS of Rs 32.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 724.0, stands at 54.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 4.2 times.
• The company's price to cash flow (P/CF) ratio stood at 17.3 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	137.5	171.9
TTM Earnings per share	Rs	32.9	13.2
Diluted earnings per share	Rs	32.9	13.2
Price to Cash Flow	x	20.3	17.3
TTM P/E ratio	x	40.6	54.8
Price / Book Value ratio	x	3.1	3.2
Market Cap	Rs m	23,003	25,112
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SEAMEC

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 2.7x 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 4.8x during FY23, from 12.9x 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 4.2% during FY23, from 11.2% 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 4.2% during FY23, from 11.2% 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 3.8% during FY23, from 9.3% 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	2.7	1.5
Debtors’ Days	Days	413	884
Interest coverage	x	12.9	4.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.3	3.8
Return on equity	%	11.2	4.2
Return on capital employed	%	11.2	4.2

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

SEAMEC Share Price Performance

Over the last one year, SEAMEC share price has moved down from Rs 905.5 to Rs 724.0, registering a loss of Rs 181.5 or around 20.0%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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