SINGER INDIA 2022-23 Annual Report Analysis

Thu, 19 Oct

SINGER 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.

SINGER INDIA Income Statement Analysis

• Operating income during the year rose 1.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 9.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 2.0% in FY23 as against 2.3% in FY22.
• Depreciation charges decreased by 11.4% and finance costs decreased by 27.6% YoY, respectively.
• Other income grew by 58.2% YoY.
• Net profit for the year grew by 8.4% YoY.
• Net profit margins during the year grew from 1.7% in FY22 to 1.8% in FY23.

SINGER INDIA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	4,530	4,603	1.6%
Other income	Rs m	28	45	58.2%
Total Revenues	Rs m	4,558	4,648	2.0%
Gross profit	Rs m	103	94	-9.2%
Depreciation	Rs m	23	20	-11.4%
Interest	Rs m	12	9	-27.6%
Profit before tax	Rs m	97	110	13.2%
Tax	Rs m	20	26	31.5%
Profit after tax	Rs m	77	83	8.4%
Gross profit margin	%	2.3	2.0
Effective tax rate	%	20.7	24.1
Net profit margin	%	1.7	1.8

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SINGER INDIA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 831 million as compared to Rs 932 million in FY22, thereby witnessing an decrease of -10.9%.
• Current assets rose 33% and stood at Rs 2 billion, while fixed assets fell 5% and stood at Rs 98 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 2 billion as against Rs 2 billion during FY22, thereby witnessing a growth of 28%.

SINGER INDIA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	771	1,360	76.5
Current Liabilities	Rs m	932	831	-10.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,711	2,187	27.9
Current assets	Rs m	1,576	2,089	32.5
Fixed Assets	Rs m	103	98	-5.0
Total Assets	Rs m	1,711	2,187	27.9

SINGER INDIA Cash Flow Statement Analysis

• SINGER INDIA's cash flow from operating activities (CFO) during FY23 stood at Rs -6 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -466 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 491 million, an improvement of 1,214% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 20 million from the Rs 159 million net cash flows seen during FY22.

SINGER 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	137	-6	-
Cash Flow from Investing Activities	Rs m	67	-466	-
Cash Flow from Financing Activities	Rs m	-44	491	-
Net Cash Flow	Rs m	159	20	-87.3%

Current Valuations for SINGER INDIA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.4, an decline from the EPS of Rs 1.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 125.6, stands at 102.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.6 times, while the price to sales ratio stands at 1.7 times.
• The company's price to cash flow (P/CF) ratio stood at 38.1 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	84.3	75.2
TTM Earnings per share	Rs	1.4	1.4
Diluted earnings per share	Rs	1.3	1.4
Price to Cash Flow	x	35.2	38.1
TTM P/E ratio	x	45.6	102.2
Price / Book Value ratio	x	4.5	2.9
Market Cap	Rs m	3,451	3,939
Dividends per share (Unadj.)	Rs	1.0	0.0

Ratio Analysis for SINGER INDIA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 1.7x 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 improved and stood at 13.6x during FY23, from 9.1x 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 6.1% during FY23, from 10.0% 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 declined and down at 8.7% during FY23, from 14.1% 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 4.2% during FY23, from 5.2% 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	1.7	2.5
Debtors’ Days	Days	402	315
Interest coverage	x	9.1	13.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.2	4.2
Return on equity	%	10.0	6.1
Return on capital employed	%	14.1	8.7

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

SINGER INDIA Share Price Performance

Over the last one year, SINGER INDIA share price has moved up from Rs 71.7 to Rs 125.6, registering a gain of Rs 53.9 or around 75.1%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 46,270.5 (up 0.3%). Over the last one year it has moved up from 42,057.3 to 46,270.5, a gain of 4,213 points (up 10.0%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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