SAFARI INDUSTRIES 2022-23 Annual Report Analysis

Wed, 19 Jul

SAFARI 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.

SAFARI INDUSTRIES Income Statement Analysis

• Operating income during the year rose 71.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 328.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.2% in FY23 as against 6.5% in FY22.
• Depreciation charges increased by 67.4% and finance costs increased by 61.9% YoY, respectively.
• Other income grew by 18.5% YoY.
• Net profit for the year grew by 459.2% YoY.
• Net profit margins during the year grew from 3.2% in FY22 to 10.3% in FY23.

SAFARI INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	7,052	12,120	71.9%
Other income	Rs m	80	95	18.5%
Total Revenues	Rs m	7,132	12,214	71.3%
Gross profit	Rs m	459	1,969	328.5%
Depreciation	Rs m	199	333	67.4%
Interest	Rs m	49	80	61.9%
Profit before tax	Rs m	291	1,650	466.9%
Tax	Rs m	67	400	492.4%
Profit after tax	Rs m	224	1,251	459.2%
Gross profit margin	%	6.5	16.2
Effective tax rate	%	23.2	24.2
Net profit margin	%	3.2	10.3

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SAFARI 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 78.3%.
• Long-term debt stood at Rs 215 million as compared to Rs 1 million during FY22, a growth of 22990.3%.
• Current assets rose 62% and stood at Rs 5 billion, while fixed assets rose 58% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 61%.

SAFARI INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,008	4,210	40.0
Current Liabilities	Rs m	1,367	2,438	78.3
Long-term Debt	Rs m	1	215	22,990.3
Total Liabilities	Rs m	4,615	7,443	61.3
Current assets	Rs m	3,353	5,447	62.5
Fixed Assets	Rs m	1,262	1,997	58.2
Total Assets	Rs m	4,615	7,443	61.3

SAFARI INDUSTRIES Cash Flow Statement Analysis

• SAFARI INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 506 million, an improvement of 223.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -695 million, an improvement of 1,799.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 196 million, an improvement of 239% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 million from the Rs -21 million net cash flows seen during FY22.

SAFARI 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	156	506	223.8%
Cash Flow from Investing Activities	Rs m	-37	-695	-
Cash Flow from Financing Activities	Rs m	-141	196	-
Net Cash Flow	Rs m	-21	7	-

Current Valuations for SAFARI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 52.8, an improvement from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,042.0, stands at 57.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.1 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 22.1 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	314.9	511.2
TTM Earnings per share	Rs	10.0	52.8
Diluted earnings per share	Rs	9.4	52.7
Price to Cash Flow	x	54.3	22.1
TTM P/E ratio	x	102.7	57.7
Price / Book Value ratio	x	5.9	8.3
Market Cap	Rs m	17,735	34,942
Dividends per share (Unadj.)	Rs	0.8	3.5

Ratio Analysis for SAFARI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.2x during FY23, from 2.5x 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 21.7x during FY23, from 6.9x 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 improved and stood at 29.7% during FY23, from 7.4% 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 39.1% during FY23, from 11.3% 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 17.9% during FY23, from 5.9% 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	2.5	2.2
Debtors’ Days	Days	593	510
Interest coverage	x	6.9	21.7
Debt to equity ratio	x	0.0	0.1
Return on assets	%	5.9	17.9
Return on equity	%	7.4	29.7
Return on capital employed	%	11.3	39.1

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

SAFARI INDUSTRIES Share Price Performance

Over the last one year, SAFARI INDUSTRIES share price has moved up from Rs 1,108.1 to Rs 3,042.0, registering a gain of Rs 1,933.9 or around 174.5%.

Overall, the S&P BSE SENSEX is up 22.7% over the year.

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