SREELEATHERS 2022-23 Annual Report Analysis

Fri, 31 Mar

SREELEATHERS 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.

SREELEATHERS Income Statement Analysis

• Operating income during the year rose 63.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 51.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 17.9% in FY23 as against 19.3% in FY22.
• Depreciation charges increased by 11.6% and finance costs increased by 2.0% YoY, respectively.
• Other income grew by 1.0% YoY.
• Net profit for the year grew by 54.9% YoY.
• Net profit margins during the year declined from 13.6% in FY22 to 12.8% in FY23.

SREELEATHERS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,219	1,996	63.8%
Other income	Rs m	6	6	1.0%
Total Revenues	Rs m	1,224	2,002	63.5%
Gross profit	Rs m	235	357	51.8%
Depreciation	Rs m	11	13	11.6%
Interest	Rs m	4	5	2.0%
Profit before tax	Rs m	225	346	53.5%
Tax	Rs m	60	90	49.4%
Profit after tax	Rs m	165	256	54.9%
Gross profit margin	%	19.3	17.9
Effective tax rate	%	26.7	26.0
Net profit margin	%	13.6	12.8

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

SREELEATHERS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 121 million as compared to Rs 91 million in FY22, thereby witnessing an increase of 33.6%.
• Current assets rose 10% and stood at Rs 232 million, while fixed assets rose 11% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 11%.

SREELEATHERS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,372	3,718	10.3
Current Liabilities	Rs m	91	121	33.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,549	3,938	10.9
Current assets	Rs m	211	232	9.8
Fixed Assets	Rs m	3,338	3,706	11.0
Total Assets	Rs m	3,549	3,938	10.9

SREELEATHERS Cash Flow Statement Analysis

• SREELEATHERS's cash flow from operating activities (CFO) during FY23 stood at Rs 291 million, an improvement of 75.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -249 million, an improvement of 60.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 million, an improvement of 25% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 36 million from the Rs 2 million net cash flows seen during FY22.

SREELEATHERS 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	166	291	75.7%
Cash Flow from Investing Activities	Rs m	-155	-249	-
Cash Flow from Financing Activities	Rs m	-8	-6	-
Net Cash Flow	Rs m	2	36	1,782.0%

Current Valuations for SREELEATHERS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.1, an improvement from the EPS of Rs 7.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 169.2, stands at 15.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.1 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 17.9 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	52.6	86.2
TTM Earnings per share	Rs	7.1	11.1
Diluted earnings per share	Rs	7.1	11.1
Price to Cash Flow	x	26.0	17.9
TTM P/E ratio	x	27.8	15.3
Price / Book Value ratio	x	1.3	1.3
Market Cap	Rs m	4,237	4,805
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SREELEATHERS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.9x during FY23, from 2.3x 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 77.4x during FY23, from 51.8x 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 improved and stood at 6.9% during FY23, from 4.9% 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 improved and stood at 9.4% during FY23, from 6.8% 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 6.6% during FY23, from 4.8% 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	2.3	1.9
Debtors’ Days	Days	9	6
Interest coverage	x	51.8	77.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.8	6.6
Return on equity	%	4.9	6.9
Return on capital employed	%	6.8	9.4

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

SREELEATHERS Share Price Performance

Over the last one year, SREELEATHERS share price has moved down from Rs 198.2 to Rs 169.2, registering a loss of Rs 29.0 or around 14.6%.

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

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