S.P. APPARELS 2022-23 Annual Report Analysis

Fri, 31 Mar

S.P. APPARELS 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.

S.P. APPARELS Income Statement Analysis

• Operating income during the year rose 25.4% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.2% in FY23 as against 16.9% in FY22.
• Depreciation charges increased by 4.5% and finance costs increased by 45.0% YoY, respectively.
• Other income grew by 36.0% YoY.
• Net profit for the year declined by 2.6% YoY.
• Net profit margins during the year declined from 9.9% in FY22 to 7.7% in FY23.

S.P. APPARELS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	8,594	10,779	25.4%
Other income	Rs m	172	234	36.0%
Total Revenues	Rs m	8,766	11,013	25.6%
Gross profit	Rs m	1,450	1,421	-2.0%
Depreciation	Rs m	346	362	4.5%
Interest	Rs m	128	186	45.0%
Profit before tax	Rs m	1,148	1,108	-3.5%
Tax	Rs m	301	283	-6.1%
Profit after tax	Rs m	847	825	-2.6%
Gross profit margin	%	16.9	13.2
Effective tax rate	%	26.2	25.5
Net profit margin	%	9.9	7.7

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S.P. APPARELS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 10.8%.
• Long-term debt down at Rs 111 million as compared to Rs 363 million during FY22, a fall of 69.5%.
• Current assets fell 0% and stood at Rs 6 billion, while fixed assets rose 7% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 11 billion during FY22, thereby witnessing a growth of 3%.

S.P. APPARELS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,378	6,736	5.6
Current Liabilities	Rs m	3,165	3,507	10.8
Long-term Debt	Rs m	363	111	-69.5
Total Liabilities	Rs m	10,618	10,971	3.3
Current assets	Rs m	5,671	5,653	-0.3
Fixed Assets	Rs m	4,946	5,317	7.5
Total Assets	Rs m	10,618	10,971	3.3

S.P. APPARELS Cash Flow Statement Analysis

• S.P. APPARELS's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 703.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 448.0% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -478 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 83 million from the Rs 212 million net cash flows seen during FY22.

S.P. APPARELS 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	269	2,160	703.2%
Cash Flow from Investing Activities	Rs m	-292	-1,599	-
Cash Flow from Financing Activities	Rs m	236	-478	-
Net Cash Flow	Rs m	212	83	-61.0%

Current Valuations for S.P. APPARELS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 32.9, an decline from the EPS of Rs 33.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 321.1, stands at 9.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.2 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 7.8 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	334.5	429.6
TTM Earnings per share	Rs	33.0	32.9
Diluted earnings per share	Rs	33.8	32.9
Price to Cash Flow	x	7.2	7.8
TTM P/E ratio	x	10.1	9.8
Price / Book Value ratio	x	1.3	1.4
Market Cap	Rs m	8,607	9,240
Dividends per share (Unadj.)	Rs	0.0	3.0

Ratio Analysis for S.P. APPARELS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.6x during FY23, from 1.8x 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 6.9x during FY23, from 9.9x 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 12.2% during FY23, from 13.3% 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 18.9% during FY23, from 18.9% 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 improved and stood at 9.2% during FY23, from 9.2% 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	1.8	1.6
Debtors’ Days	Days	49	35
Interest coverage	x	9.9	6.9
Debt to equity ratio	x	0.1	0.0
Return on assets	%	9.2	9.2
Return on equity	%	13.3	12.2
Return on capital employed	%	18.9	18.9

To see how S.P. APPARELS has performed over the last 5 years, please visit here.

S.P. APPARELS Share Price Performance

Over the last one year, S.P. APPARELS share price has moved down from Rs 341.9 to Rs 321.1, registering a loss of Rs 20.8 or around 6.1%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for S.P. APPARELS and quarterly results for S.P. APPARELS)