SHALBY 2022-23 Annual Report Analysis

Wed, 16 Aug

SHALBY 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.

SHALBY Income Statement Analysis

• Operating income during the year rose 15.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.2% in FY23 as against 16.8% in FY22.
• Depreciation charges increased by 12.2% and finance costs increased by 40.2% YoY, respectively.
• Other income grew by 81.3% YoY.
• Net profit for the year grew by 25.4% YoY.
• Net profit margins during the year grew from 7.7% in FY22 to 8.4% in FY23.

SHALBY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,989	8,049	15.2%
Other income	Rs m	124	225	81.3%
Total Revenues	Rs m	7,114	8,274	16.3%
Gross profit	Rs m	1,171	1,382	18.0%
Depreciation	Rs m	429	481	12.2%
Interest	Rs m	75	106	40.2%
Profit before tax	Rs m	791	1,020	28.9%
Tax	Rs m	252	344	36.5%
Profit after tax	Rs m	540	677	25.4%
Gross profit margin	%	16.8	17.2
Effective tax rate	%	31.8	33.7
Net profit margin	%	7.7	8.4

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SHALBY 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 12.7%.
• Long-term debt down at Rs 674 million as compared to Rs 874 million during FY22, a fall of 22.8%.
• Current assets rose 17% and stood at Rs 5 billion, while fixed assets rose 5% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 13 billion during FY22, thereby witnessing a growth of 9%.

SHALBY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,763	9,269	5.8
Current Liabilities	Rs m	1,725	1,944	12.7
Long-term Debt	Rs m	874	674	-22.8
Total Liabilities	Rs m	12,823	13,915	8.5
Current assets	Rs m	4,423	5,173	17.0
Fixed Assets	Rs m	8,334	8,742	4.9
Total Assets	Rs m	12,823	13,915	8.5

SHALBY Cash Flow Statement Analysis

• SHALBY 's cash flow from operating activities (CFO) during FY23 stood at Rs 678 million, an improvement of 258.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -611 million, an improvement of 1.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -500 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -433 million from the Rs 491 million net cash flows seen during FY22.

SHALBY 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	189	678	258.3%
Cash Flow from Investing Activities	Rs m	-603	-611	-
Cash Flow from Financing Activities	Rs m	905	-500	-
Net Cash Flow	Rs m	491	-433	-

Current Valuations for SHALBY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.3, an improvement from the EPS of Rs 5.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 187.2, stands at 29.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 2.5 times.
• The company's price to cash flow (P/CF) ratio stood at 12.2 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	64.7	75.0
TTM Earnings per share	Rs	5.0	6.3
Diluted earnings per share	Rs	5.0	6.3
Price to Cash Flow	x	13.0	12.2
TTM P/E ratio	x	23.4	29.6
Price / Book Value ratio	x	1.9	1.5
Market Cap	Rs m	16,898	14,114
Dividends per share (Unadj.)	Rs	1.0	1.2

Ratio Analysis for SHALBY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 2.6x 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 10.7x during FY23, from 11.5x 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 7.3% during FY23, from 6.2% 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 11.3% during FY23, from 9.0% 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 5.6% during FY23, from 4.8% 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	2.6	2.7
Debtors’ Days	Days	53	48
Interest coverage	x	11.5	10.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	4.8	5.6
Return on equity	%	6.2	7.3
Return on capital employed	%	9.0	11.3

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

SHALBY Share Price Performance

Over the last one year, SHALBY share price has moved up from Rs 126.6 to Rs 187.2, registering a gain of Rs 60.6 or around 47.9%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 27,819.2 (down 0.5%). Over the last one year it has moved up from 23,239.6 to 27,819.2, a gain of 4,580 points (up 19.7%).

Overall, the S&P BSE SENSEX is up 10.2% over the year.

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