SADBHAV ENGINEERING 2022-23 Annual Report Analysis

Mon, 12 Feb

SADBHAV ENGINEERING 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.

SADBHAV ENGINEERING Income Statement Analysis

• Operating income during the year fell 6.9% 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 18.0% in FY23 as against 26.9% in FY22.
• Depreciation charges decreased by 21.5% and finance costs decreased by 32.2% YoY, respectively.
• Other income declined by 56.6% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 38.2% in FY22 to 39.4% in FY23.

SADBHAV ENGINEERING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	19,077	17,769	-6.9%
Other income	Rs m	9,200	3,996	-56.6%
Total Revenues	Rs m	28,277	21,765	-23.0%
Gross profit	Rs m	-5,125	-3,207	NA
Depreciation	Rs m	1,669	1,310	-21.5%
Interest	Rs m	9,756	6,612	-32.2%
Profit before tax	Rs m	-7,349	-7,133	NA
Tax	Rs m	-66	-140	NA
Profit after tax	Rs m	-7,284	-6,994	NA
Gross profit margin	%	-26.9	-18.0
Effective tax rate	%	0.9	2.0
Net profit margin	%	-38.2	-39.4

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SADBHAV ENGINEERING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 54 billion as compared to Rs 54 billion in FY22, thereby witnessing an increase of 1.0%.
• Long-term debt down at Rs 18 billion as compared to Rs 30 billion during FY22, a fall of 40.3%.
• Current assets fell 4% and stood at Rs 51 billion, while fixed assets fell 44% and stood at Rs 23 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 97 billion as against Rs 109 billion during FY22, thereby witnessing a fall of 11%.

SADBHAV ENGINEERING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,015	1,752	-78.1
Current Liabilities	Rs m	53,742	54,293	1.0
Long-term Debt	Rs m	29,850	17,825	-40.3
Total Liabilities	Rs m	109,156	96,680	-11.4
Current assets	Rs m	53,420	51,125	-4.3
Fixed Assets	Rs m	41,550	23,345	-43.8
Total Assets	Rs m	109,156	96,680	-11.4

SADBHAV ENGINEERING Cash Flow Statement Analysis

• SADBHAV ENGINEERING's cash flow from operating activities (CFO) during FY23 stood at Rs 18 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 318 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -19 billion, an improvement of 11% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -501 million from the Rs 493 million net cash flows seen during FY22.

SADBHAV ENGINEERING 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	-30,954	17,883	-
Cash Flow from Investing Activities	Rs m	52,517	318	-99.4%
Cash Flow from Financing Activities	Rs m	-21,070	-18,702	-
Net Cash Flow	Rs m	493	-501	-

Current Valuations for SADBHAV ENGINEERING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -40.8, an improvement from the EPS of Rs -42.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 8.6, stands at -0.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.1 times.
• The company's price to cash flow (P/CF) ratio stood at -0.7 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	111.2	103.6
TTM Earnings per share	Rs	-42.5	-40.8
Diluted earnings per share	Rs	-42.5	-40.8
Price to Cash Flow	x	-0.8	-0.7
TTM P/E ratio	x	-0.6	-0.2
Price / Book Value ratio	x	1.3	2.3
Market Cap	Rs m	10,333	4,077
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SADBHAV ENGINEERING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.9x during FY23, from 1.0x 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 -0.1x during FY23, from 0.2x 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 -399.1% during FY23, from -90.9% 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 -2.7% during FY23, from 6.4% 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 -0.4% during FY23, from 2.3% 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	1.0	0.9
Debtors’ Days	Days	618	792
Interest coverage	x	0.2	-0.1
Debt to equity ratio	x	3.7	10.2
Return on assets	%	2.3	-0.4
Return on equity	%	-90.9	-399.1
Return on capital employed	%	6.4	-2.7

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

SADBHAV ENGINEERING Share Price Performance

Over the last one year, SADBHAV ENGINEERING share price has moved down from Rs 26.4 to Rs 8.6, registering a loss of Rs 17.8 or around 67.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 34,369.7 (up 1.2%). Over the last one year it has moved up from 27,506.0 to 34,369.7, a gain of 6,864 points (up 25.0%).

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

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