SANGAM INDIA 2022-23 Annual Report Analysis

Fri, 31 Mar

SANGAM INDIA 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.

SANGAM INDIA Income Statement Analysis

• Operating income during the year rose 11.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY23 as against 12.1% in FY22.
• Depreciation charges increased by 12.9% and finance costs increased by 12.8% YoY, respectively.
• Other income grew by 140.1% YoY.
• Net profit for the year declined by 7.2% YoY.
• Net profit margins during the year declined from 5.8% in FY22 to 4.8% in FY23.

SANGAM INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	24,378	27,123	11.3%
Other income	Rs m	71	171	140.1%
Total Revenues	Rs m	24,449	27,294	11.6%
Gross profit	Rs m	2,951	2,758	-6.5%
Depreciation	Rs m	703	794	12.9%
Interest	Rs m	478	539	12.8%
Profit before tax	Rs m	1,841	1,597	-13.3%
Tax	Rs m	434	291	-33.0%
Profit after tax	Rs m	1,407	1,305	-7.2%
Gross profit margin	%	12.1	10.2
Effective tax rate	%	23.6	18.2
Net profit margin	%	5.8	4.8

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SANGAM INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 9 billion as compared to Rs 9 billion in FY22, thereby witnessing an increase of 0.5%.
• Long-term debt stood at Rs 3 billion as compared to Rs 2 billion during FY22, a growth of 88.1%.
• Current assets rose 1% and stood at Rs 11 billion, while fixed assets rose 44% and stood at Rs 11 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 18 billion during FY22, thereby witnessing a growth of 18%.

SANGAM INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,903	8,597	24.5
Current Liabilities	Rs m	8,875	8,921	0.5
Long-term Debt	Rs m	1,806	3,395	88.1
Total Liabilities	Rs m	18,240	21,606	18.5
Current assets	Rs m	10,591	10,665	0.7
Fixed Assets	Rs m	7,572	10,940	44.5
Total Assets	Rs m	18,240	21,606	18.5

SANGAM INDIA Cash Flow Statement Analysis

• SANGAM INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -4 billion, an improvement of 84.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 453% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 57 million from the Rs 122 million net cash flows seen during FY22.

SANGAM INDIA 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	2,448	2,158	-11.8%
Cash Flow from Investing Activities	Rs m	-1,920	-3,536	-
Cash Flow from Financing Activities	Rs m	-406	1,434	-
Net Cash Flow	Rs m	122	57	-53.5%

Current Valuations for SANGAM INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 29.0, an decline from the EPS of Rs 32.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 215.4, stands at 8.3 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 6.5 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	561.4	602.1
TTM Earnings per share	Rs	32.4	29.0
Diluted earnings per share	Rs	28.0	26.0
Price to Cash Flow	x	6.2	6.5
TTM P/E ratio	x	9.2	8.3
Price / Book Value ratio	x	1.6	1.6
Market Cap	Rs m	10,789	13,672
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for SANGAM INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.2x 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 4.0x during FY23, from 4.9x 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 declined and down at 15.2% during FY23, from 20.4% 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 declined and down at 17.8% during FY23, from 26.6% 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 declined and down at 8.5% during FY23, from 10.3% 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	1.2	1.2
Debtors’ Days	Days	564	475
Interest coverage	x	4.9	4.0
Debt to equity ratio	x	0.3	0.4
Return on assets	%	10.3	8.5
Return on equity	%	20.4	15.2
Return on capital employed	%	26.6	17.8

To see how SANGAM INDIA has performed over the last 5 years, please visit here.

SANGAM INDIA Share Price Performance

Over the last one year, SANGAM INDIA share price has moved down from Rs 258.5 to Rs 215.4, registering a loss of Rs 43.1 or around 16.7%.

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

(To know more, check out historical annual results for SANGAM INDIA and quarterly results for SANGAM INDIA)