S CHAND AND COMPANY 2022-23 Annual Report Analysis

Tue, 26 Sep

S CHAND AND COMPANY 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.

S CHAND AND COMPANY Income Statement Analysis

• Operating income during the year rose 26.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 87.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.3% in FY23 as against 12.4% in FY22.
• Depreciation charges increased by 10.2% and finance costs decreased by 24.4% YoY, respectively.
• Other income grew by 129.4% YoY.
• Net profit for the year grew by 616.3% YoY.
• Net profit margins during the year grew from 1.7% in FY22 to 9.4% in FY23.

S CHAND AND COMPANY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,809	6,103	26.9%
Other income	Rs m	143	329	129.4%
Total Revenues	Rs m	4,953	6,432	29.9%
Gross profit	Rs m	596	1,118	87.4%
Depreciation	Rs m	421	464	10.2%
Interest	Rs m	274	207	-24.4%
Profit before tax	Rs m	46	777	1,601.7%
Tax	Rs m	-35	201	NA
Profit after tax	Rs m	80	576	616.3%
Gross profit margin	%	12.4	18.3
Effective tax rate	%	-76.2	25.8
Net profit margin	%	1.7	9.4

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S CHAND AND COMPANY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 2.7%.
• Long-term debt down at Rs 255 million as compared to Rs 674 million during FY22, a fall of 62.1%.
• Current assets rose 7% and stood at Rs 6 billion, while fixed assets fell 2% and stood at Rs 6 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 2%.

S CHAND AND COMPANY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,294	8,933	7.7
Current Liabilities	Rs m	2,575	2,645	2.7
Long-term Debt	Rs m	674	255	-62.1
Total Liabilities	Rs m	11,088	11,287	1.8
Current assets	Rs m	5,164	5,527	7.0
Fixed Assets	Rs m	5,901	5,760	-2.4
Total Assets	Rs m	11,088	11,287	1.8

S CHAND AND COMPANY Cash Flow Statement Analysis

• S CHAND AND COMPANY 's cash flow from operating activities (CFO) during FY23 stood at Rs 811 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -44 million, an improvement of 59.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -607 million, an improvement of 28% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 160 million from the Rs 190 million net cash flows seen during FY22.

S CHAND AND COMPANY 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	1,066	811	-23.9%
Cash Flow from Investing Activities	Rs m	-28	-44	-
Cash Flow from Financing Activities	Rs m	-848	-607	-
Net Cash Flow	Rs m	190	160	-15.9%

Current Valuations for S CHAND AND COMPANY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.4, an improvement from the EPS of Rs 2.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 283.4, stands at 19.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 5.5 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	136.8	173.6
TTM Earnings per share	Rs	2.3	16.4
Diluted earnings per share	Rs	2.3	16.4
Price to Cash Flow	x	6.8	5.5
TTM P/E ratio	x	39.9	19.0
Price / Book Value ratio	x	0.5	0.6
Market Cap	Rs m	4,197	5,751
Dividends per share (Unadj.)	Rs	0.0	3.0

Ratio Analysis for S CHAND AND COMPANY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 2.0x 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 improved and stood at 4.8x during FY23, from 1.2x 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 improved and stood at 6.4% during FY23, from 1.0% 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 10.7% during FY23, from 3.6% 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 6.9% during FY23, from 3.2% 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	2.0	2.1
Debtors’ Days	Days	222	159
Interest coverage	x	1.2	4.8
Debt to equity ratio	x	0.1	0.0
Return on assets	%	3.2	6.9
Return on equity	%	1.0	6.4
Return on capital employed	%	3.6	10.7

To see how S CHAND AND COMPANY has performed over the last 5 years, please visit here.

S CHAND AND COMPANY Share Price Performance

Over the last one year, S CHAND AND COMPANY share price has moved up from Rs 172.5 to Rs 283.4, registering a gain of Rs 110.9 or around 64.3%.

Overall, the S&P BSE SENSEX is up 11.5% over the year.

(To know more, check out historical annual results for S CHAND AND COMPANY and quarterly results for S CHAND AND COMPANY )