SAKTHI SUGARS 2022-23 Annual Report Analysis

Wed, 16 Aug

SAKTHI SUGARS 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.

SAKTHI SUGARS Income Statement Analysis

• Operating income during the year rose 144.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 495.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 47.5% in FY23 as against 19.5% in FY22.
• Depreciation charges decreased by 18.9% and finance costs decreased by 53.7% YoY, respectively.
• Other income declined by 7.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 41.7% in FY22 to 35.4% in FY23.

SAKTHI SUGARS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,317	10,538	144.1%
Other income	Rs m	159	147	-7.3%
Total Revenues	Rs m	4,476	10,685	138.7%
Gross profit	Rs m	841	5,009	495.7%
Depreciation	Rs m	458	371	-18.9%
Interest	Rs m	2,335	1,080	-53.7%
Profit before tax	Rs m	-1,794	3,705	NA
Tax	Rs m	4	-22	NA
Profit after tax	Rs m	-1,798	3,727	NA
Gross profit margin	%	19.5	47.5
Effective tax rate	%	-0.2	-0.6
Net profit margin	%	-41.7	35.4

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SAKTHI SUGARS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 12 billion as compared to Rs 18 billion in FY22, thereby witnessing an decrease of -37.2%.
• Long-term debt stood at Rs 5 billion as compared to Rs 4 billion during FY22, a growth of 34.0%.
• Current assets fell 33% and stood at Rs 6 billion, while fixed assets rose 18% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 17 billion as against Rs 18 billion during FY22, thereby witnessing a fall of 8%.

SAKTHI SUGARS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-4,281	-108	NA
Current Liabilities	Rs m	18,408	11,568	-37.2
Long-term Debt	Rs m	3,758	5,036	34.0
Total Liabilities	Rs m	18,125	16,660	-8.1
Current assets	Rs m	9,302	6,259	-32.7
Fixed Assets	Rs m	8,822	10,402	17.9
Total Assets	Rs m	18,125	16,660	-8.1

SAKTHI SUGARS Cash Flow Statement Analysis

• SAKTHI SUGARS's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 191.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion, an improvement of 1,299.2% 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 -106 million from the Rs 135 million net cash flows seen during FY22.

SAKTHI SUGARS 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	365	1,067	191.9%
Cash Flow from Investing Activities	Rs m	86	1,208	1,299.2%
Cash Flow from Financing Activities	Rs m	-317	-2,380	-
Net Cash Flow	Rs m	135	-106	-

Current Valuations for SAKTHI SUGARS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 31.4, an improvement from the EPS of Rs -15.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 24.7, stands at 0.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -27.1 times, while the price to sales ratio stands at 0.3 times.
• The company's price to cash flow (P/CF) ratio stood at 0.7 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	36.3	88.7
TTM Earnings per share	Rs	-15.1	31.4
Diluted earnings per share	Rs	-15.1	31.4
Price to Cash Flow	x	-1.2	0.7
TTM P/E ratio	x	-0.9	0.8
Price / Book Value ratio	x	-0.4	-26.3
Market Cap	Rs m	1,871	2,849
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SAKTHI SUGARS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.5x during FY23, from 0.5x 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 4.4x during FY23, from 0.2x 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 declined and down at -3,442.0% during FY23, from 42.0% 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 97.1% during FY23, from -103.4% 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 28.9% during FY23, from 3.0% 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	0.5	0.5
Debtors’ Days	Days	54	27
Interest coverage	x	0.2	4.4
Debt to equity ratio	x	-0.9	-46.5
Return on assets	%	3.0	28.9
Return on equity	%	42.0	-3,442.0
Return on capital employed	%	-103.4	97.1

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

SAKTHI SUGARS Share Price Performance

Over the last one year, SAKTHI SUGARS share price has moved up from Rs 19.1 to Rs 24.7, registering a gain of Rs 5.6 or around 29.4%.

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

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