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SHAKTI PUMPS 2022-23 Annual Report Analysis

Mon, 2 Oct

SHAKTI PUMPS 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.

SHAKTI PUMPS Income Statement Analysis

• Operating income during the year fell 17.9% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 39.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.9% in FY23 as against 9.4% in FY22.
• Depreciation charges decreased by 0.9% and finance costs increased by 22.3% YoY, respectively.
• Other income declined by 47.0% YoY.
• Net profit for the year declined by 62.8% YoY.
• Net profit margins during the year declined from 5.5% in FY22 to 2.5% in FY23.

SHAKTI PUMPS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,785	9,677	-17.9%
Other income	Rs m	61	33	-47.0%
Total Revenues	Rs m	11,847	9,709	-18.0%
Gross profit	Rs m	1,105	666	-39.7%
Depreciation	Rs m	186	184	-0.9%
Interest	Rs m	157	192	22.3%
Profit before tax	Rs m	823	322	-60.8%
Tax	Rs m	175	81	-53.7%
Profit after tax	Rs m	648	241	-62.8%
Gross profit margin	%	9.4	6.9
Effective tax rate	%	21.3	25.2
Net profit margin	%	5.5	2.5

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SHAKTI PUMPS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -35.1%.
• Long-term debt down at Rs 24 million as compared to Rs 93 million during FY22, a fall of 73.9%.
• Current assets fell 21% and stood at Rs 6 billion, while fixed assets rose 8% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 9 billion during FY22, thereby witnessing a fall of 16%.

SHAKTI PUMPS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,932	4,181	6.3
Current Liabilities	Rs m	4,475	2,903	-35.1
Long-term Debt	Rs m	93	24	-73.9
Total Liabilities	Rs m	8,637	7,253	-16.0
Current assets	Rs m	7,126	5,620	-21.1
Fixed Assets	Rs m	1,510	1,628	7.8
Total Assets	Rs m	8,637	7,253	-16.0

SHAKTI PUMPS Cash Flow Statement Analysis

• SHAKTI PUMPS's cash flow from operating activities (CFO) during FY23 stood at Rs 387 million, an improvement of 127.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -120 million, an improvement of 58.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -469 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -202 million from the Rs 97 million net cash flows seen during FY22.

SHAKTI PUMPS 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	170	387	127.6%
Cash Flow from Investing Activities	Rs m	-76	-120	-
Cash Flow from Financing Activities	Rs m	3	-469	-
Net Cash Flow	Rs m	97	-202	-

Current Valuations for SHAKTI PUMPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.1, an decline from the EPS of Rs 35.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 860.3, stands at 96.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.8 times, while the price to sales ratio stands at 1.6 times.
• The company's price to cash flow (P/CF) ratio stood at 21.0 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	641.2	526.5
TTM Earnings per share	Rs	35.3	13.1
Diluted earnings per share	Rs	35.3	13.1
Price to Cash Flow	x	10.1	21.0
TTM P/E ratio	x	13.0	96.5
Price / Book Value ratio	x	3.2	2.1
Market Cap	Rs m	12,526	8,913
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for SHAKTI PUMPS

• 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 deteriorated and stood at 2.7x during FY23, from 6.3x 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 5.8% during FY23, from 16.5% 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 12.2% during FY23, from 24.4% 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 declined and down at 6.0% during FY23, from 9.3% 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	1,185	919
Interest coverage	x	6.3	2.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.3	6.0
Return on equity	%	16.5	5.8
Return on capital employed	%	24.4	12.2

To see how SHAKTI PUMPS has performed over the last 5 years, please visit here.

SHAKTI PUMPS Share Price Performance

Over the last one year, SHAKTI PUMPS share price has moved up from Rs 514.9 to Rs 860.3, registering a gain of Rs 345.4 or around 67.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 47,729.0 (up 0.8%). Over the last one year it has moved up from 31,217.8 to 47,729.0, a gain of 16,511 points (up 52.9%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for SHAKTI PUMPS and quarterly results for SHAKTI PUMPS)