SHISH INDUSTRIES 2022-23 Annual Report Analysis

Tue, 4 Jul

SHISH INDUSTRIES 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.

SHISH INDUSTRIES Income Statement Analysis

• Operating income during the year rose 37.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 124.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.2% in FY23 as against 8.0% in FY22.
• Depreciation charges increased by 16.3% and finance costs increased by 31.5% YoY, respectively.
• Other income grew by 84.1% YoY.
• Net profit for the year grew by 155.8% YoY.
• Net profit margins during the year grew from 5.3% in FY22 to 9.9% in FY23.

SHISH INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	500	685	37.0%
Other income	Rs m	10	18	84.1%
Total Revenues	Rs m	510	703	37.9%
Gross profit	Rs m	40	90	124.3%
Depreciation	Rs m	11	13	16.3%
Interest	Rs m	4	6	31.5%
Profit before tax	Rs m	35	90	158.6%
Tax	Rs m	8	22	167.5%
Profit after tax	Rs m	27	68	155.8%
Gross profit margin	%	8.0	13.2
Effective tax rate	%	23.7	24.5
Net profit margin	%	5.3	9.9

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SHISH INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 181 million as compared to Rs 98 million in FY22, thereby witnessing an increase of 85.5%.
• Long-term debt stood at Rs 15 million as compared to Rs 10 million during FY22, a growth of 49.4%.
• Current assets rose 118% and stood at Rs 453 million, while fixed assets rose 23% and stood at Rs 90 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 543 million as against Rs 281 million during FY22, thereby witnessing a growth of 93%.

SHISH INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	174	348	99.9
Current Liabilities	Rs m	98	181	85.5
Long-term Debt	Rs m	10	15	49.4
Total Liabilities	Rs m	281	543	93.3
Current assets	Rs m	208	453	118.1
Fixed Assets	Rs m	73	90	22.7
Total Assets	Rs m	281	543	93.3

SHISH INDUSTRIES Cash Flow Statement Analysis

• SHISH INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 3 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -29 million, an improvement of 25.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 135 million, an improvement of 79% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 109 million from the Rs 0 million net cash flows seen during FY22.

SHISH INDUSTRIES 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	-52	3	-
Cash Flow from Investing Activities	Rs m	-23	-29	-
Cash Flow from Financing Activities	Rs m	75	135	79.3%
Net Cash Flow	Rs m	0	109	-

Current Valuations for SHISH INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.1, an improvement from the EPS of Rs 2.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 392.9, stands at 66.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.8 times, while the price to sales ratio stands at 6.3 times.
• The company's price to cash flow (P/CF) ratio stood at 24.2 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	47.5	62.0
TTM Earnings per share	Rs	2.5	6.1
Diluted earnings per share	Rs	2.3	5.9
Price to Cash Flow	x	29.0	24.2
TTM P/E ratio	x	40.9	66.1
Price / Book Value ratio	x	4.5	5.6
Market Cap	Rs m	789	1,949
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SHISH INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 2.1x 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 17.1x during FY23, from 9.2x 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 19.5% during FY23, from 15.2% 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 26.3% during FY23, from 21.2% 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 13.5% during FY23, from 10.9% 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	2.1	2.5
Debtors’ Days	Days	644	1,033
Interest coverage	x	9.2	17.1
Debt to equity ratio	x	0.1	0.0
Return on assets	%	10.9	13.5
Return on equity	%	15.2	19.5
Return on capital employed	%	21.2	26.3

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

SHISH INDUSTRIES Share Price Performance

Over the last one year, SHISH INDUSTRIES share price has moved up from Rs 174.5 to Rs 392.9, registering a gain of Rs 218.4 or around 125.2%.

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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