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SANDHAR TECHNOLOGIES 2022-23 Annual Report Analysis

Fri, 31 Mar

SANDHAR TECHNOLOGIES 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.

SANDHAR TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 25.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.5% in FY23 as against 8.8% in FY22.
• Depreciation charges increased by 21.5% and finance costs increased by 102.0% YoY, respectively.
• Other income grew by 79.0% YoY.
• Net profit for the year grew by 11.2% YoY.
• Net profit margins during the year declined from 3.0% in FY22 to 2.6% in FY23.

SANDHAR TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	23,237	29,089	25.2%
Other income	Rs m	70	125	79.0%
Total Revenues	Rs m	23,307	29,214	25.3%
Gross profit	Rs m	2,049	2,480	21.0%
Depreciation	Rs m	1,000	1,215	21.5%
Interest	Rs m	177	358	102.0%
Profit before tax	Rs m	942	1,032	9.6%
Tax	Rs m	255	268	5.1%
Profit after tax	Rs m	686	764	11.2%
Gross profit margin	%	8.8	8.5
Effective tax rate	%	27.1	26.0
Net profit margin	%	3.0	2.6

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SANDHAR TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 8 billion in FY22, thereby witnessing an increase of 1.9%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY22, a growth of 23.4%.
• Current assets fell 3% and stood at Rs 8 billion, while fixed assets rose 16% and stood at Rs 14 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 21 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 9%.

SANDHAR TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,589	9,205	7.2
Current Liabilities	Rs m	7,687	7,835	1.9
Long-term Debt	Rs m	2,469	3,048	23.4
Total Liabilities	Rs m	19,751	21,490	8.8
Current assets	Rs m	7,988	7,732	-3.2
Fixed Assets	Rs m	11,764	13,680	16.3
Total Assets	Rs m	19,751	21,490	8.8

SANDHAR TECHNOLOGIES Cash Flow Statement Analysis

• SANDHAR TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 533.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -369 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 24 million from the Rs -19 million net cash flows seen during FY22.

SANDHAR TECHNOLOGIES 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	486	3,079	533.2%
Cash Flow from Investing Activities	Rs m	-3,112	-2,475	-
Cash Flow from Financing Activities	Rs m	2,597	-369	-
Net Cash Flow	Rs m	-19	24	-

Current Valuations for SANDHAR TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 12.7, an improvement from the EPS of Rs 11.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 202.0, stands at 15.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 7.0 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	386.1	483.3
TTM Earnings per share	Rs	11.4	12.7
Diluted earnings per share	Rs	11.4	12.7
Price to Cash Flow	x	7.8	7.0
TTM P/E ratio	x	19.1	15.9
Price / Book Value ratio	x	1.8	1.5
Market Cap	Rs m	15,288	13,895
Dividends per share (Unadj.)	Rs	2.3	2.5

Ratio Analysis for SANDHAR TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.0x 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 3.9x during FY23, from 6.3x 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 8.3% during FY23, from 8.0% 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 11.3% during FY23, from 10.1% 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 4.4% 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	1.0
Debtors’ Days	Days	700	446
Interest coverage	x	6.3	3.9
Debt to equity ratio	x	0.3	0.3
Return on assets	%	4.4	5.2
Return on equity	%	8.0	8.3
Return on capital employed	%	10.1	11.3

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

SANDHAR TECHNOLOGIES Share Price Performance

Over the last one year, SANDHAR TECHNOLOGIES share price has moved down from Rs 218.4 to Rs 202.0, registering a loss of Rs 16.4 or around 7.5%.

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

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