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SHREE RENUKA SUGARS 2022-23 Annual Report Analysis

Thu, 14 Sep

SHREE RENUKA SUGARS 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.

SHREE RENUKA SUGARS Income Statement Analysis

• Operating income during the year rose 40.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 44.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.2% in FY23 as against 6.0% in FY22.
• Depreciation charges increased by 14.3% and finance costs increased by 50.6% YoY, respectively.
• Other income grew by 22.8% YoY.
• Net profit for the year grew by NA YoY.
• Net profit margins during the year declined from 2.1% in FY22 to 2.2% in FY23.

SHREE RENUKA SUGARS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	64,326	90,207	40.2%
Other income	Rs m	737	905	22.8%
Total Revenues	Rs m	65,063	91,113	40.0%
Gross profit	Rs m	3,883	5,590	44.0%
Depreciation	Rs m	2,079	2,377	14.3%
Interest	Rs m	3,926	5,914	50.6%
Profit before tax	Rs m	-1,386	-1,796	NA
Tax	Rs m	-19	171	NA
Profit after tax	Rs m	-1,367	-1,967	NA
Gross profit margin	%	6.0	6.2
Effective tax rate	%	1.3	-9.5
Net profit margin	%	-2.1	-2.2

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SHREE RENUKA SUGARS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 52 billion as compared to Rs 48 billion in FY22, thereby witnessing an increase of 9.4%.
• Long-term debt stood at Rs 31 billion as compared to Rs 28 billion during FY22, a growth of 11.0%.
• Current assets rose 12% and stood at Rs 31 billion, while fixed assets rose 4% and stood at Rs 45 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 76 billion as against Rs 71 billion during FY22, thereby witnessing a growth of 7%.

SHREE RENUKA SUGARS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-6,077	-8,812	NA
Current Liabilities	Rs m	47,513	51,988	9.4
Long-term Debt	Rs m	27,561	30,581	11.0
Total Liabilities	Rs m	71,034	76,042	7.1
Current assets	Rs m	27,340	30,558	11.8
Fixed Assets	Rs m	43,694	45,484	4.1
Total Assets	Rs m	71,034	76,042	7.1

SHREE RENUKA SUGARS Cash Flow Statement Analysis

• SHREE RENUKA SUGARS's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 17.3% 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 1 billion from the Rs -164 million net cash flows seen during FY22.

SHREE RENUKA SUGARS 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	-1,337	9,264	-
Cash Flow from Investing Activities	Rs m	-3,021	-3,544	-
Cash Flow from Financing Activities	Rs m	4,545	-3,316	-
Net Cash Flow	Rs m	-164	1,448	-

Current Valuations for SHREE RENUKA SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.9, an decline from the EPS of Rs -0.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 55.7, stands at -53.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -13.4 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 270.8 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	30.2	42.4
TTM Earnings per share	Rs	-0.6	-0.9
Diluted earnings per share	Rs	-0.6	-0.9
Price to Cash Flow	x	106.3	270.8
TTM P/E ratio	x	-55.4	-53.4
Price / Book Value ratio	x	-10.0	-12.6
Market Cap	Rs m	60,715	111,001
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHREE RENUKA SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.6x during FY23, from 0.6x 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 improved and stood at 0.7x during FY23, from 0.6x 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 22.3% during FY23, from 22.5% 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 improved and stood at 18.9% during FY23, from 11.8% 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 improved and stood at 5.2% during FY23, from 3.6% 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	0.6	0.6
Debtors’ Days	Days	16	8
Interest coverage	x	0.6	0.7
Debt to equity ratio	x	-4.5	-3.5
Return on assets	%	3.6	5.2
Return on equity	%	22.5	22.3
Return on capital employed	%	11.8	18.9

To see how SHREE RENUKA SUGARS has performed over the last 5 years, please visit here.

SHREE RENUKA SUGARS Share Price Performance

Over the last one year, SHREE RENUKA SUGARS share price has moved up from Rs 49.6 to Rs 55.7, registering a gain of Rs 6.1 or around 12.2%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

(To know more, check out historical annual results for SHREE RENUKA SUGARS and quarterly results for SHREE RENUKA SUGARS)