SAT INDUSTRIES 2022-23 Annual Report Analysis

Tue, 27 Jun

SAT INDUSTRIES 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.

SAT INDUSTRIES Income Statement Analysis

• Operating income during the year rose 34.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 3.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.3% in FY23 as against 17.1% in FY22.
• Depreciation charges increased by 23.4% and finance costs decreased by 5.1% YoY, respectively.
• Other income grew by 227.1% YoY.
• Net profit for the year grew by 16.4% YoY.
• Net profit margins during the year declined from 11.2% in FY22 to 9.7% in FY23.

SAT INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,467	4,662	34.5%
Other income	Rs m	48	155	227.1%
Total Revenues	Rs m	3,515	4,818	37.1%
Gross profit	Rs m	592	574	-3.0%
Depreciation	Rs m	58	72	23.4%
Interest	Rs m	79	75	-5.1%
Profit before tax	Rs m	503	583	16.0%
Tax	Rs m	116	132	14.5%
Profit after tax	Rs m	387	451	16.4%
Gross profit margin	%	17.1	12.3
Effective tax rate	%	23.0	22.7
Net profit margin	%	11.2	9.7

Emerging Opportunity: Bluechip Bull Run

SAT INDUSTRIES 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 6.5%.
• Long-term debt stood at Rs 283 million as compared to Rs 225 million during FY22, a growth of 25.9%.
• Current assets rose 30% and stood at Rs 3 billion, while fixed assets rose 28% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 29%.

SAT INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,029	2,614	28.8
Current Liabilities	Rs m	1,419	1,512	6.5
Long-term Debt	Rs m	225	283	25.9
Total Liabilities	Rs m	3,789	4,903	29.4
Current assets	Rs m	2,648	3,445	30.1
Fixed Assets	Rs m	1,142	1,458	27.7
Total Assets	Rs m	3,789	4,903	29.4

SAT INDUSTRIES Cash Flow Statement Analysis

• SAT INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -68 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -325 million, an improvement of 50.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 576 million, an improvement of 648% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 182 million from the Rs 34 million net cash flows seen during FY22.

SAT INDUSTRIES 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	173	-68	-
Cash Flow from Investing Activities	Rs m	-216	-325	-
Cash Flow from Financing Activities	Rs m	77	576	647.6%
Net Cash Flow	Rs m	34	182	431.1%

Current Valuations for SAT INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.0, an improvement from the EPS of Rs 3.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 80.5, stands at 20.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.1 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	30.7	41.2
TTM Earnings per share	Rs	3.4	4.0
Diluted earnings per share	Rs	3.4	4.0
Price to Cash Flow	x	9.9	12.1
TTM P/E ratio	x	11.3	20.2
Price / Book Value ratio	x	2.2	2.4
Market Cap	Rs m	4,433	6,319
Dividends per share (Unadj.)	Rs	0.2	0.2

Ratio Analysis for SAT INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.9x 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 8.8x during FY23, from 7.4x 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 17.2% during FY23, from 19.1% 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 22.7% during FY23, from 25.8% 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 declined and down at 10.7% during FY23, from 12.3% 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	1.9	2.3
Debtors’ Days	Days	851	838
Interest coverage	x	7.4	8.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	12.3	10.7
Return on equity	%	19.1	17.2
Return on capital employed	%	25.8	22.7

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

SAT INDUSTRIES Share Price Performance

Over the last one year, SAT INDUSTRIES share price has moved up from Rs 34.9 to Rs 80.5, registering a gain of Rs 45.6 or around 130.5%.

Overall, the S&P BSE SENSEX is up 20.8% over the year.

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