SHEMAROO ENT. 2022-23 Annual Report Analysis

Mon, 21 Aug

SHEMAROO ENT. 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.

SHEMAROO ENT. Income Statement Analysis

• Operating income during the year rose 45.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 31.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.5% in FY23 as against 9.4% in FY22.
• Depreciation charges decreased by 21.5% and finance costs increased by 18.4% YoY, respectively.
• Other income grew by 82.1% YoY.
• Net profit for the year grew by 88.2% YoY.
• Net profit margins during the year grew from 1.3% in FY22 to 1.7% in FY23.

SHEMAROO ENT. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,814	5,566	45.9%
Other income	Rs m	19	34	82.1%
Total Revenues	Rs m	3,833	5,600	46.1%
Gross profit	Rs m	358	473	31.9%
Depreciation	Rs m	66	52	-21.5%
Interest	Rs m	259	307	18.4%
Profit before tax	Rs m	52	148	186.4%
Tax	Rs m	1	53	5,171.0%
Profit after tax	Rs m	51	96	88.2%
Gross profit margin	%	9.4	8.5
Effective tax rate	%	1.9	35.6
Net profit margin	%	1.3	1.7

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SHEMAROO ENT. Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 45.2%.
• Long-term debt stood at Rs 126 million as compared to Rs 116 million during FY22, a growth of 8.5%.
• Current assets rose 15% and stood at Rs 10 billion, while fixed assets rose 54% and stood at Rs 416 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 17%.

SHEMAROO ENT. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,818	5,900	1.4
Current Liabilities	Rs m	2,989	4,341	45.2
Long-term Debt	Rs m	116	126	8.5
Total Liabilities	Rs m	8,888	10,357	16.5
Current assets	Rs m	8,617	9,941	15.4
Fixed Assets	Rs m	270	416	53.9
Total Assets	Rs m	8,888	10,357	16.5

SHEMAROO ENT. Cash Flow Statement Analysis

• SHEMAROO ENT.'s cash flow from operating activities (CFO) during FY23 stood at Rs -172 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -190 million, an improvement of 693.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 356 million, an improvement of 187% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -7 million from the Rs 8 million net cash flows seen during FY22.

SHEMAROO ENT. 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	441	-172	-
Cash Flow from Investing Activities	Rs m	-24	-190	-
Cash Flow from Financing Activities	Rs m	-410	356	-
Net Cash Flow	Rs m	8	-7	-

Current Valuations for SHEMAROO ENT.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an improvement from the EPS of Rs 1.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 142.7, stands at 47.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 27.5 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	140.3	204.8
TTM Earnings per share	Rs	1.9	3.5
Diluted earnings per share	Rs	1.9	3.5
Price to Cash Flow	x	31.4	27.5
TTM P/E ratio	x	72.5	47.9
Price / Book Value ratio	x	0.6	0.7
Market Cap	Rs m	3,343	4,056
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHEMAROO ENT.

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.3x during FY23, from 2.9x 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 1.5x 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 1.6% during FY23, from 0.9% 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 7.5% during FY23, from 5.2% 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 3.9% during FY23, from 3.5% 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	2.9	2.3
Debtors’ Days	Days	542	831
Interest coverage	x	1.2	1.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	3.5	3.9
Return on equity	%	0.9	1.6
Return on capital employed	%	5.2	7.5

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

SHEMAROO ENT. Share Price Performance

Over the last one year, SHEMAROO ENT. share price has moved up from Rs 135.9 to Rs 142.7, registering a gain of Rs 6.9 or around 5.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,953.5 (up 1.0%). Over the last one year it has moved up from 13,903.0 to 13,953.5, a gain of 51 points (up 0.4%).

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

(To know more, check out historical annual results for SHEMAROO ENT. and quarterly results for SHEMAROO ENT.)