SIRCA PAINTS INDIA 2022-23 Annual Report Analysis

Thu, 17 Aug

SIRCA PAINTS INDIA 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.

SIRCA PAINTS INDIA Income Statement Analysis

• Operating income during the year rose 33.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 63.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 23.0% in FY23 as against 18.9% in FY22.
• Depreciation charges increased by 6.9% and finance costs decreased by 56.1% YoY, respectively.
• Other income grew by 10.1% YoY.
• Net profit for the year grew by 66.3% YoY.
• Net profit margins during the year grew from 13.9% in FY22 to 17.2% in FY23.

SIRCA PAINTS INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	2,000	2,677	33.9%
Other income	Rs m	44	48	10.1%
Total Revenues	Rs m	2,044	2,726	33.3%
Gross profit	Rs m	378	617	63.4%
Depreciation	Rs m	41	44	6.9%
Interest	Rs m	1	0	-56.1%
Profit before tax	Rs m	379	621	63.7%
Tax	Rs m	102	160	56.4%
Profit after tax	Rs m	277	461	66.3%
Gross profit margin	%	18.9	23.0
Effective tax rate	%	26.9	25.8
Net profit margin	%	13.9	17.2

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SIRCA PAINTS INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 619 million as compared to Rs 468 million in FY22, thereby witnessing an increase of 32.4%.
• Current assets rose 23% and stood at Rs 3 billion, while fixed assets rose 10% and stood at Rs 626 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 21%.

SIRCA PAINTS INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,251	2,655	17.9
Current Liabilities	Rs m	468	619	32.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	2,714	3,275	20.7
Current assets	Rs m	2,146	2,649	23.5
Fixed Assets	Rs m	569	626	10.0
Total Assets	Rs m	2,714	3,275	20.7

SIRCA PAINTS INDIA Cash Flow Statement Analysis

• SIRCA PAINTS INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs -187 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 94 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -55 million, an improvement of 68% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -148 million from the Rs 67 million net cash flows seen during FY22.

SIRCA PAINTS INDIA 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	352	-187	-
Cash Flow from Investing Activities	Rs m	-111	94	-
Cash Flow from Financing Activities	Rs m	-174	-55	-
Net Cash Flow	Rs m	67	-148	-

Current Valuations for SIRCA PAINTS INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.8, an improvement from the EPS of Rs 10.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 398.5, stands at 46.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.2 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 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	73.0	97.7
TTM Earnings per share	Rs	10.1	16.8
Diluted earnings per share	Rs	5.1	8.4
Price to Cash Flow	x	0.0	19.0
TTM P/E ratio	x	0.0	46.1
Price / Book Value ratio	x	5.5	3.6
Market Cap	Rs m	12,442	9,584
Dividends per share (Unadj.)	Rs	2.0	1.5

Ratio Analysis for SIRCA PAINTS INDIA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.3x during FY23, from 4.6x 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 1,445.3x during FY23, from 388.2x 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 17.4% during FY23, from 12.3% 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 23.4% during FY23, from 16.9% 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 14.1% during FY23, from 10.2% 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	4.6	4.3
Debtors’ Days	Days	833	700
Interest coverage	x	388.2	1,445.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.2	14.1
Return on equity	%	12.3	17.4
Return on capital employed	%	16.9	23.4

To see how SIRCA PAINTS INDIA has performed over the last 5 years, please visit here.

SIRCA PAINTS INDIA Share Price Performance

Over the last one year, SIRCA PAINTS INDIA share price has moved up from Rs 0.0 to Rs 398.5, registering a gain of Rs 398.5 or around 0.0%.

Overall, the S&P BSE SENSEX is up 8.9% over the year.

(To know more, check out historical annual results for SIRCA PAINTS INDIA and quarterly results for SIRCA PAINTS INDIA)