SHALIMAR PAINTS 2022-23 Annual Report Analysis

Fri, 31 Mar

SHALIMAR PAINTS 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.

SHALIMAR PAINTS Income Statement Analysis

• Operating income during the year rose 35.6% 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 3.0% in FY23 as against 8.3% in FY22.
• Depreciation charges decreased by 5.2% and finance costs decreased by 28.7% YoY, respectively.
• Other income grew by 58.9% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 16.8% in FY22 to 7.4% in FY23.

SHALIMAR PAINTS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,582	4,856	35.6%
Other income	Rs m	45	72	58.9%
Total Revenues	Rs m	3,627	4,928	35.8%
Gross profit	Rs m	-298	-148	NA
Depreciation	Rs m	134	127	-5.2%
Interest	Rs m	223	159	-28.7%
Profit before tax	Rs m	-609	-361	NA
Tax	Rs m	-6	0	NA
Profit after tax	Rs m	-604	-361	NA
Gross profit margin	%	-8.3	-3.0
Effective tax rate	%	1.0	0.0
Net profit margin	%	-16.8	-7.4

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SHALIMAR PAINTS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 20.7%.
• Long-term debt down at Rs 146 million as compared to Rs 821 million during FY22, a fall of 82.2%.
• Current assets fell 6% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 6 billion as against Rs 6 billion during FY22, thereby witnessing a fall of 4%.

SHALIMAR PAINTS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,507	3,150	-10.2
Current Liabilities	Rs m	2,050	2,476	20.7
Long-term Debt	Rs m	821	146	-82.2
Total Liabilities	Rs m	6,467	6,237	-3.6
Current assets	Rs m	3,660	3,454	-5.6
Fixed Assets	Rs m	2,807	2,782	-0.9
Total Assets	Rs m	6,467	6,237	-3.6

SHALIMAR PAINTS Cash Flow Statement Analysis

• SHALIMAR PAINTS's cash flow from operating activities (CFO) during FY23 stood at Rs -479 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -838 million, an improvement of 1,357.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -69 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 2 billion net cash flows seen during FY22.

SHALIMAR PAINTS 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	-618	-479	-
Cash Flow from Investing Activities	Rs m	-57	-838	-
Cash Flow from Financing Activities	Rs m	2,247	-69	-
Net Cash Flow	Rs m	1,571	-1,386	-

Current Valuations for SHALIMAR PAINTS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -5.0, an improvement from the EPS of Rs -8.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 136.5, stands at -31.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.6 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at -46.1 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	49.6	67.2
TTM Earnings per share	Rs	-8.4	-5.0
Diluted earnings per share	Rs	-7.2	-4.3
Price to Cash Flow	x	-20.9	-46.1
TTM P/E ratio	x	-15.9	-31.5
Price / Book Value ratio	x	2.4	3.4
Market Cap	Rs m	8,431	10,816
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHALIMAR PAINTS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.8x 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 -1.3x during FY23, from -1.7x 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 -11.5% during FY23, from -17.2% 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 -6.1% during FY23, from -8.9% 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 -3.2% 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	1.8	1.4
Debtors’ Days	Days	800	808
Interest coverage	x	-1.7	-1.3
Debt to equity ratio	x	0.2	0.0
Return on assets	%	-5.9	-3.2
Return on equity	%	-17.2	-11.5
Return on capital employed	%	-8.9	-6.1

To see how SHALIMAR PAINTS has performed over the last 5 years, please visit here.

SHALIMAR PAINTS Share Price Performance

Over the last one year, SHALIMAR PAINTS share price has moved up from Rs 117.3 to Rs 136.5, registering a gain of Rs 19.3 or around 16.4%.

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

(To know more, check out historical annual results for SHALIMAR PAINTS and quarterly results for SHALIMAR PAINTS)