SKP SECURE. 2022-23 Annual Report Analysis

Tue, 20 Jun

SKP SECURE. 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.

SKP SECURE. Income Statement Analysis

• Operating income during the year fell 6.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 25.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 30.4% in FY23 as against 38.0% in FY22.
• Depreciation charges decreased by 25.6% and finance costs increased by 111.9% YoY, respectively.
• Other income grew by 0.0% YoY.
• Net profit for the year declined by 42.8% YoY.
• Net profit margins during the year declined from 27.1% in FY22 to 16.6% in FY23.

SKP SECURE. Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	200	187	-6.5%
Other income	Rs m	0	0	0.0%
Total Revenues	Rs m	200	187	-6.4%
Gross profit	Rs m	76	57	-25.3%
Depreciation	Rs m	6	4	-25.6%
Interest	Rs m	2	4	111.9%
Profit before tax	Rs m	69	49	-28.4%
Tax	Rs m	15	18	25.2%
Profit after tax	Rs m	54	31	-42.8%
Gross profit margin	%	38.0	30.4
Effective tax rate	%	21.1	36.9
Net profit margin	%	27.1	16.6

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SKP SECURE. Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 282 million as compared to Rs 340 million in FY22, thereby witnessing an decrease of -17.0%.
• Long-term debt down at Rs 27 million as compared to Rs 31 million during FY22, a fall of 14.7%.
• Current assets fell 6% and stood at Rs 290 million, while fixed assets fell 2% and stood at Rs 364 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 653 million as against Rs 679 million during FY22, thereby witnessing a fall of 4%.

SKP SECURE. Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	306	337	10.1
Current Liabilities	Rs m	340	282	-17.0
Long-term Debt	Rs m	31	27	-14.7
Total Liabilities	Rs m	679	653	-3.8
Current assets	Rs m	308	290	-5.8
Fixed Assets	Rs m	371	364	-2.1
Total Assets	Rs m	679	653	-3.8

SKP SECURE. Cash Flow Statement Analysis

• SKP SECURE.'s cash flow from operating activities (CFO) during FY23 stood at Rs -5 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 16 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -8 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 3 million from the Rs 8 million net cash flows seen during FY22.

SKP SECURE. 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	5	-5	-
Cash Flow from Investing Activities	Rs m	-27	16	-
Cash Flow from Financing Activities	Rs m	29	-8	-
Net Cash Flow	Rs m	8	3	-64.6%

Current Valuations for SKP SECURE.

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.6, an decline from the EPS of Rs 15.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 66.1, stands at 14.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 13.1 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	58.7	27.4
TTM Earnings per share	Rs	15.9	4.6
Diluted earnings per share	Rs	8.0	4.6
Price to Cash Flow	x	4.2	13.1
TTM P/E ratio	x	4.7	14.5
Price / Book Value ratio	x	0.4	1.4
Market Cap	Rs m	116	461
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for SKP SECURE.

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.0x during FY23, from 0.9x 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 deteriorated and stood at 14.8x during FY23, from 41.9x 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 declined and down at 9.2% during FY23, from 17.7% 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 declined and down at 14.5% during FY23, from 20.9% 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 declined and down at 5.3% during FY23, from 8.2% 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	0.9	1.0
Debtors’ Days	Days	1,106	887
Interest coverage	x	41.9	14.8
Debt to equity ratio	x	0.1	0.1
Return on assets	%	8.2	5.3
Return on equity	%	17.7	9.2
Return on capital employed	%	20.9	14.5

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

SKP SECURE. Share Price Performance

Over the last one year, SKP SECURE. share price has moved up from Rs 51.3 to Rs 66.1, registering a gain of Rs 14.8 or around 28.9%.

Overall, the S&P BSE SENSEX is up 23.2% over the year.

(To know more, check out historical annual results for SKP SECURE. and quarterly results for SKP SECURE.)