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SKIPPER 2022-23 Annual Report Analysis

Thu, 31 Aug

SKIPPER 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.

SKIPPER Income Statement Analysis

• Operating income during the year rose 16.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 26.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY23 as against 8.5% in FY22.
• Depreciation charges decreased by 3.5% and finance costs increased by 12.2% YoY, respectively.
• Other income declined by 26.3% YoY.
• Net profit for the year grew by 41.4% YoY.
• Net profit margins during the year grew from 1.5% in FY22 to 1.8% in FY23.

SKIPPER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	17,071	19,803	16.0%
Other income	Rs m	231	170	-26.3%
Total Revenues	Rs m	17,302	19,973	15.4%
Gross profit	Rs m	1,458	1,846	26.6%
Depreciation	Rs m	485	468	-3.5%
Interest	Rs m	935	1,049	12.2%
Profit before tax	Rs m	269	499	85.7%
Tax	Rs m	17	144	727.6%
Profit after tax	Rs m	251	356	41.4%
Gross profit margin	%	8.5	9.3
Effective tax rate	%	6.5	28.8
Net profit margin	%	1.5	1.8

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SKIPPER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 11 billion as compared to Rs 11 billion in FY22, thereby witnessing an increase of 1.9%.
• Long-term debt down at Rs 2 billion as compared to Rs 2 billion during FY22, a fall of 9.5%.
• Current assets rose 5% and stood at Rs 15 billion, while fixed assets rose 10% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 22 billion as against Rs 21 billion during FY22, thereby witnessing a growth of 7%.

SKIPPER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	7,321	7,674	4.8
Current Liabilities	Rs m	10,838	11,048	1.9
Long-term Debt	Rs m	2,120	1,919	-9.5
Total Liabilities	Rs m	20,839	22,226	6.7
Current assets	Rs m	13,851	14,569	5.2
Fixed Assets	Rs m	6,988	7,657	9.6
Total Assets	Rs m	20,839	22,226	6.7

SKIPPER Cash Flow Statement Analysis

• SKIPPER's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion, an improvement of 1,544.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -979 million, an improvement of 103.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 10 million from the Rs 2 million net cash flows seen during FY22.

SKIPPER 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	173	2,842	1,544.9%
Cash Flow from Investing Activities	Rs m	-482	-979	-
Cash Flow from Financing Activities	Rs m	311	-1,853	-
Net Cash Flow	Rs m	2	10	504.2%

Current Valuations for SKIPPER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.5, an improvement from the EPS of Rs 2.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 224.6, stands at 49.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.0 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 12.4 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	166.3	192.9
TTM Earnings per share	Rs	2.4	3.5
Diluted earnings per share	Rs	2.4	3.5
Price to Cash Flow	x	7.6	12.4
TTM P/E ratio	x	19.6	49.6
Price / Book Value ratio	x	1.1	1.3
Market Cap	Rs m	7,693	10,208
Dividends per share (Unadj.)	Rs	0.1	0.1

Ratio Analysis for SKIPPER

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.3x during FY23, from 1.3x 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 1.3x 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 4.6% during FY23, from 3.4% 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 improved and stood at 16.1% during FY23, from 12.8% 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 6.3% during FY23, from 5.7% 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	1.3	1.3
Debtors’ Days	Days	93	66
Interest coverage	x	1.3	1.5
Debt to equity ratio	x	0.3	0.3
Return on assets	%	5.7	6.3
Return on equity	%	3.4	4.6
Return on capital employed	%	12.8	16.1

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

SKIPPER Share Price Performance

Over the last one year, SKIPPER share price has moved up from Rs 59.0 to Rs 224.6, registering a gain of Rs 165.6 or around 280.6%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 45,016.4 (up 0.2%). Over the last one year it has moved up from 32,224.8 to 45,016.4, a gain of 12,792 points (up 39.7%).

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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