SHIPPING CORP 2022-23 Annual Report Analysis

Mon, 21 Aug

SHIPPING CORP 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.

SHIPPING CORP Income Statement Analysis

• Operating income during the year rose 16.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 1.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 28.1% in FY23 as against 32.1% in FY22.
• Depreciation charges increased by 18.6% and finance costs increased by 15.0% YoY, respectively.
• Other income grew by 14.9% YoY.
• Net profit for the year grew by 1.1% YoY.
• Net profit margins during the year declined from 17.3% in FY22 to 15.0% in FY23.

SHIPPING CORP Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	49,881	57,940	16.2%
Other income	Rs m	986	1,132	14.9%
Total Revenues	Rs m	50,866	59,072	16.1%
Gross profit	Rs m	16,020	16,279	1.6%
Depreciation	Rs m	6,353	7,532	18.6%
Interest	Rs m	1,609	1,849	15.0%
Profit before tax	Rs m	9,045	8,030	-11.2%
Tax	Rs m	439	-671	NA
Profit after tax	Rs m	8,605	8,702	1.1%
Gross profit margin	%	32.1	28.1
Effective tax rate	%	4.9	-8.4
Net profit margin	%	17.3	15.0

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

SHIPPING CORP Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 28 billion as compared to Rs 26 billion in FY22, thereby witnessing an increase of 5.5%.
• Long-term debt down at Rs 17 billion as compared to Rs 21 billion during FY22, a fall of 22.7%.
• Current assets rose 26% and stood at Rs 27 billion, while fixed assets rose 0% and stood at Rs 88 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 114 billion as against Rs 109 billion during FY22, thereby witnessing a growth of 5%.

SHIPPING CORP Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	59,742	69,023	15.5
Current Liabilities	Rs m	26,465	27,922	5.5
Long-term Debt	Rs m	21,462	16,592	-22.7
Total Liabilities	Rs m	108,587	114,430	5.4
Current assets	Rs m	21,372	26,904	25.9
Fixed Assets	Rs m	87,216	87,526	0.4
Total Assets	Rs m	108,587	114,430	5.4

SHIPPING CORP Cash Flow Statement Analysis

• SHIPPING CORP's cash flow from operating activities (CFO) during FY23 stood at Rs 15 billion, an improvement of 1.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 344 million from the Rs 583 million net cash flows seen during FY22.

SHIPPING CORP 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	14,403	14,654	1.7%
Cash Flow from Investing Activities	Rs m	-7,302	-5,194	-
Cash Flow from Financing Activities	Rs m	-6,527	-9,299	-
Net Cash Flow	Rs m	583	344	-41.0%

Current Valuations for SHIPPING CORP

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.7, an improvement from the EPS of Rs 18.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 116.0, stands at 6.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 2.7 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	107.1	124.4
TTM Earnings per share	Rs	18.5	18.7
Diluted earnings per share	Rs	18.5	18.7
Price to Cash Flow	x	2.8	2.7
TTM P/E ratio	x	5.3	6.2
Price / Book Value ratio	x	1.0	0.6
Market Cap	Rs m	58,993	43,097
Dividends per share (Unadj.)	Rs	0.3	0.4

Ratio Analysis for SHIPPING CORP

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 0.8x 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 deteriorated and stood at 5.3x during FY23, from 6.6x 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 12.6% during FY23, from 14.4% 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 11.5% during FY23, from 13.1% 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 declined and down at 9.2% during FY23, from 9.4% 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	0.8	1.0
Debtors’ Days	Days	466	641
Interest coverage	x	6.6	5.3
Debt to equity ratio	x	0.4	0.2
Return on assets	%	9.4	9.2
Return on equity	%	14.4	12.6
Return on capital employed	%	13.1	11.5

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

SHIPPING CORP Share Price Performance

Over the last one year, SHIPPING CORP share price has moved up from Rs 88.4 to Rs 116.0, registering a gain of Rs 27.6 or around 31.2%.

Overall, the S&P BSE SENSEX is up 8.3% over the year.

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