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SHRIRAM PISTONS & RINGS 2022-23 Annual Report Analysis

Tue, 20 Jun

SHRIRAM PISTONS & RINGS 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.

SHRIRAM PISTONS & RINGS Income Statement Analysis

• Operating income during the year rose 26.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 17.6% in FY23 as against 14.7% in FY22.
• Depreciation charges decreased by 7.2% and finance costs increased by 68.9% YoY, respectively.
• Other income grew by 59.7% YoY.
• Net profit for the year grew by 79.7% YoY.
• Net profit margins during the year grew from 7.9% in FY22 to 11.3% in FY23.

SHRIRAM PISTONS & RINGS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,647	26,093	26.4%
Other income	Rs m	292	467	59.7%
Total Revenues	Rs m	20,939	26,560	26.8%
Gross profit	Rs m	3,045	4,604	51.2%
Depreciation	Rs m	1,020	947	-7.2%
Interest	Rs m	114	193	68.9%
Profit before tax	Rs m	2,202	3,930	78.5%
Tax	Rs m	566	991	75.0%
Profit after tax	Rs m	1,636	2,939	79.7%
Gross profit margin	%	14.7	17.6
Effective tax rate	%	25.7	25.2
Net profit margin	%	7.9	11.3

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SHRIRAM PISTONS & RINGS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 7 billion as compared to Rs 5 billion in FY22, thereby witnessing an increase of 31.1%.
• Long-term debt stood at Rs 1 billion as compared to Rs 403 million during FY22, a growth of 262.0%.
• Current assets rose 39% and stood at Rs 16 billion, while fixed assets rose 16% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 25 billion as against Rs 19 billion during FY22, thereby witnessing a growth of 30%.

SHRIRAM PISTONS & RINGS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,550	15,275	21.7
Current Liabilities	Rs m	5,340	7,001	31.1
Long-term Debt	Rs m	403	1,460	262.0
Total Liabilities	Rs m	19,076	24,738	29.7
Current assets	Rs m	11,575	16,050	38.7
Fixed Assets	Rs m	7,501	8,687	15.8
Total Assets	Rs m	19,076	24,738	29.7

SHRIRAM PISTONS & RINGS Cash Flow Statement Analysis

• SHRIRAM PISTONS & RINGS's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion, an improvement of 80.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 270.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 532 million, an improvement of 159% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 2 billion from the Rs 723 million net cash flows seen during FY22.

SHRIRAM PISTONS & RINGS 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	2,193	3,952	80.2%
Cash Flow from Investing Activities	Rs m	-563	-2,085	-
Cash Flow from Financing Activities	Rs m	-907	532	-
Net Cash Flow	Rs m	723	2,398	231.7%

Current Valuations for SHRIRAM PISTONS & RINGS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 133.5, an improvement from the EPS of Rs 74.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,735.3, stands at 13.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.5 times, while the price to sales ratio stands at 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 4.8 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	937.6	1,185.0
TTM Earnings per share	Rs	74.3	133.5
Diluted earnings per share	Rs	74.3	133.4
Price to Cash Flow	x	0.0	4.8
TTM P/E ratio	x	0.0	13.0
Price / Book Value ratio	x	0.0	1.2
Market Cap	Rs m	0	18,613
Dividends per share (Unadj.)	Rs	10.0	15.0

Ratio Analysis for SHRIRAM PISTONS & RINGS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 2.2x 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 21.4x during FY23, from 20.3x 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 19.2% during FY23, from 13.0% 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 24.6% during FY23, from 17.9% 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 12.7% during FY23, from 9.2% 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	2.2	2.3
Debtors’ Days	Days	63	55
Interest coverage	x	20.3	21.4
Debt to equity ratio	x	0.0	0.1
Return on assets	%	9.2	12.7
Return on equity	%	13.0	19.2
Return on capital employed	%	17.9	24.6

To see how SHRIRAM PISTONS & RINGS has performed over the last 5 years, please visit here.

SHRIRAM PISTONS & RINGS Share Price Performance

Over the last one year, SHRIRAM PISTONS & RINGS share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is down 0.2% over the year.

(To know more, check out historical annual results for SHRIRAM PISTONS & RINGS and quarterly results for SHRIRAM PISTONS & RINGS)