SANGHVI MOVERS 2022-23 Annual Report Analysis

Wed, 16 Aug

SANGHVI MOVERS 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.

SANGHVI MOVERS Income Statement Analysis

• Operating income during the year rose 35.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 86.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 56.4% in FY23 as against 41.1% in FY22.
• Depreciation charges increased by 2.5% and finance costs decreased by 3.8% YoY, respectively.
• Other income declined by 19.5% YoY.
• Net profit for the year grew by 281.1% YoY.
• Net profit margins during the year grew from 8.8% in FY22 to 24.6% in FY23.

SANGHVI MOVERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,353	4,558	35.9%
Other income	Rs m	370	298	-19.5%
Total Revenues	Rs m	3,723	4,856	30.4%
Gross profit	Rs m	1,379	2,569	86.3%
Depreciation	Rs m	1,181	1,211	2.5%
Interest	Rs m	173	167	-3.8%
Profit before tax	Rs m	395	1,489	277.3%
Tax	Rs m	101	369	266.1%
Profit after tax	Rs m	294	1,121	281.1%
Gross profit margin	%	41.1	56.4
Effective tax rate	%	25.5	24.7
Net profit margin	%	8.8	24.6

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SANGHVI MOVERS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 933 million in FY22, thereby witnessing an increase of 54.9%.
• Long-term debt down at Rs 935 million as compared to Rs 1 billion during FY22, a fall of 21.8%.
• Current assets rose 24% and stood at Rs 2 billion, while fixed assets rose 15% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 17%.

SANGHVI MOVERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,339	8,417	14.7
Current Liabilities	Rs m	933	1,446	54.9
Long-term Debt	Rs m	1,196	935	-21.8
Total Liabilities	Rs m	9,642	11,267	16.8
Current assets	Rs m	1,785	2,210	23.8
Fixed Assets	Rs m	7,857	9,056	15.3
Total Assets	Rs m	9,642	11,267	16.8

SANGHVI MOVERS Cash Flow Statement Analysis

• SANGHVI MOVERS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 98.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 213.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -152 million, an improvement of 69% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 51 million from the Rs 61 million net cash flows seen during FY22.

SANGHVI MOVERS 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	1,299	2,573	98.1%
Cash Flow from Investing Activities	Rs m	-755	-2,370	-
Cash Flow from Financing Activities	Rs m	-483	-152	-
Net Cash Flow	Rs m	61	51	-15.7%

Current Valuations for SANGHVI MOVERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 25.9, an improvement from the EPS of Rs 6.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 635.2, stands at 19.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 5.1 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	77.4	105.3
TTM Earnings per share	Rs	6.8	25.9
Diluted earnings per share	Rs	6.8	25.9
Price to Cash Flow	x	5.4	5.1
TTM P/E ratio	x	27.2	19.7
Price / Book Value ratio	x	1.1	1.4
Market Cap	Rs m	7,846	11,796
Dividends per share (Unadj.)	Rs	1.0	4.0

Ratio Analysis for SANGHVI MOVERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.5x during FY23, from 1.9x 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 9.9x during FY23, from 3.3x 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 13.3% during FY23, from 4.0% 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 17.7% during FY23, from 6.7% 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 11.4% 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	1.9	1.5
Debtors’ Days	Days	1,318	1,123
Interest coverage	x	3.3	9.9
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.8	11.4
Return on equity	%	4.0	13.3
Return on capital employed	%	6.7	17.7

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

SANGHVI MOVERS Share Price Performance

Over the last one year, SANGHVI MOVERS share price has moved up from Rs 251.0 to Rs 635.2, registering a gain of Rs 384.2 or around 153.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 43,332.6 (down 0.2%). Over the last one year it has moved up from 31,135.0 to 43,332.6, a gain of 12,198 points (up 39.2%).

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

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