SANGHI INDUSTRIES 2022-23 Annual Report Analysis

Fri, 25 Aug

SANGHI INDUSTRIES 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.

SANGHI INDUSTRIES Income Statement Analysis

• Operating income during the year fell 17.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 1.5% in FY23 as against 17.0% in FY22.
• Depreciation charges increased by 45.5% and finance costs increased by 190.6% YoY, respectively.
• Other income grew by 75.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 3.6% in FY22 to 35.1% in FY23.

SANGHI INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,294	9,284	-17.8%
Other income	Rs m	111	195	75.2%
Total Revenues	Rs m	11,405	9,478	-16.9%
Gross profit	Rs m	1,918	-136	NA
Depreciation	Rs m	642	934	45.5%
Interest	Rs m	820	2,382	190.6%
Profit before tax	Rs m	568	-3,257	NA
Tax	Rs m	161	0	-100.0%
Profit after tax	Rs m	406	-3,257	NA
Gross profit margin	%	17.0	-1.5
Effective tax rate	%	28.4	0.0
Net profit margin	%	3.6	-35.1

Revealing Soon: A Potential Huge Investing Opportunity for Investors

SANGHI INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 7 billion as compared to Rs 8 billion in FY22, thereby witnessing an decrease of -17.1%.
• Long-term debt stood at Rs 14 billion as compared to Rs 10 billion during FY22, a growth of 33.9%.
• Current assets fell 11% and stood at Rs 5 billion, while fixed assets fell 1% and stood at Rs 32 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 37 billion as against Rs 38 billion during FY22, thereby witnessing a fall of 3%.

SANGHI INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	18,342	15,591	-15.0
Current Liabilities	Rs m	7,926	6,571	-17.1
Long-term Debt	Rs m	10,085	13,507	33.9
Total Liabilities	Rs m	37,827	36,728	-2.9
Current assets	Rs m	5,673	5,023	-11.5
Fixed Assets	Rs m	32,153	31,705	-1.4
Total Assets	Rs m	37,827	36,728	-2.9

SANGHI INDUSTRIES Cash Flow Statement Analysis

• SANGHI INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs -252 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 292 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -32 million, an improvement of 97% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 8 million from the Rs -10 million net cash flows seen during FY22.

SANGHI INDUSTRIES 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	4,021	-252	-
Cash Flow from Investing Activities	Rs m	-2,984	292	-
Cash Flow from Financing Activities	Rs m	-1,047	-32	-
Net Cash Flow	Rs m	-10	8	-

Current Valuations for SANGHI INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -12.6, an decline from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 110.0, stands at -5.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.8 times, while the price to sales ratio stands at 3.1 times.
• The company's price to cash flow (P/CF) ratio stood at -6.3 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	45.0	35.9
TTM Earnings per share	Rs	1.6	-12.6
Diluted earnings per share	Rs	1.6	-12.6
Price to Cash Flow	x	10.7	-6.3
TTM P/E ratio	x	27.7	-5.9
Price / Book Value ratio	x	0.9	0.9
Market Cap	Rs m	15,675	14,524
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SANGHI INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.8x during FY23, from 0.7x 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 -0.4x during FY23, from 1.7x 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 -20.9% during FY23, from 2.2% 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 -3.0% during FY23, from 4.9% 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 -2.4% during FY23, from 3.2% 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	0.7	0.8
Debtors’ Days	Days	3	2
Interest coverage	x	1.7	-0.4
Debt to equity ratio	x	0.5	0.9
Return on assets	%	3.2	-2.4
Return on equity	%	2.2	-20.9
Return on capital employed	%	4.9	-3.0

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

SANGHI INDUSTRIES Share Price Performance

Over the last one year, SANGHI INDUSTRIES share price has moved up from Rs 54.6 to Rs 110.0, registering a gain of Rs 55.4 or around 101.5%.

Overall, the S&P BSE SENSEX is up 9.9% over the year.

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