SUNDRAM FASTENERS 2022-23 Annual Report Analysis

Thu, 8 Jun

SUNDRAM FASTENERS 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.

SUNDRAM FASTENERS Income Statement Analysis

• Operating income during the year rose 0.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.6% in FY23 as against 16.3% in FY22.
• Depreciation charges decreased by 17.7% and finance costs decreased by 14.2% YoY, respectively.
• Other income declined by 23.8% YoY.
• Net profit for the year grew by 0.6% YoY.
• Net profit margins during the year grew from 9.4% in FY22 to 9.4% in FY23.

SUNDRAM FASTENERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	49,021	49,194	0.4%
Other income	Rs m	393	300	-23.8%
Total Revenues	Rs m	49,414	49,494	0.2%
Gross profit	Rs m	8,014	7,676	-4.2%
Depreciation	Rs m	1,908	1,570	-17.7%
Interest	Rs m	287	246	-14.2%
Profit before tax	Rs m	6,212	6,159	-0.9%
Tax	Rs m	1,594	1,515	-4.9%
Profit after tax	Rs m	4,618	4,644	0.6%
Gross profit margin	%	16.3	15.6
Effective tax rate	%	25.7	24.6
Net profit margin	%	9.4	9.4

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SUNDRAM FASTENERS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 10 billion as compared to Rs 13 billion in FY22, thereby witnessing an decrease of -23.0%.
• Long-term debt down at Rs 411 million as compared to Rs 2 billion during FY22, a fall of 82.6%.
• Current assets fell 8% and stood at Rs 18 billion, while fixed assets fell 3% and stood at Rs 22 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 41 billion as against Rs 43 billion during FY22, thereby witnessing a fall of 5%.

SUNDRAM FASTENERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	26,213	29,090	11.0
Current Liabilities	Rs m	12,510	9,630	-23.0
Long-term Debt	Rs m	2,366	411	-82.6
Total Liabilities	Rs m	42,837	40,596	-5.2
Current assets	Rs m	19,821	18,313	-7.6
Fixed Assets	Rs m	23,016	22,283	-3.2
Total Assets	Rs m	42,837	40,596	-5.2

SUNDRAM FASTENERS Cash Flow Statement Analysis

• SUNDRAM FASTENERS's cash flow from operating activities (CFO) during FY23 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 2.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 8% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 170 million from the Rs 115 million net cash flows seen during FY22.

SUNDRAM FASTENERS 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	4,012	3,941	-1.8%
Cash Flow from Investing Activities	Rs m	-2,022	-2,062	-
Cash Flow from Financing Activities	Rs m	-1,864	-1,710	-
Net Cash Flow	Rs m	115	170	47.3%

Current Valuations for SUNDRAM FASTENERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 22.1, an improvement from the EPS of Rs 22.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,146.7, stands at 48.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.3 times, while the price to sales ratio stands at 4.9 times.
• The company's price to cash flow (P/CF) ratio stood at 28.9 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	233.3	234.1
TTM Earnings per share	Rs	22.0	22.1
Diluted earnings per share	Rs	22.0	22.1
Price to Cash Flow	x	28.9	28.9
TTM P/E ratio	x	40.8	48.2
Price / Book Value ratio	x	6.6	6.2
Market Cap	Rs m	173,109	179,481
Dividends per share (Unadj.)	Rs	6.5	8.6

Ratio Analysis for SUNDRAM FASTENERS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.6x 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 26.0x during FY23, from 22.6x 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 16.0% during FY23, from 17.6% 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 21.7% during FY23, from 22.7% 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 12.0% during FY23, from 11.5% 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	1.6	1.9
Debtors’ Days	Days	7	7
Interest coverage	x	22.6	26.0
Debt to equity ratio	x	0.1	0.0
Return on assets	%	11.5	12.0
Return on equity	%	17.6	16.0
Return on capital employed	%	22.7	21.7

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

SUNDRAM FASTENERS Share Price Performance

Over the last one year, SUNDRAM FASTENERS share price has moved up from Rs 744.7 to Rs 1,146.7, registering a gain of Rs 402.0 or around 54.0%.

Overall, the S&P BSE SENSEX is up 13.7% over the year.

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