SHREYANS INDUSTRIES 2022-23 Annual Report Analysis

Tue, 20 Feb

SHREYANS 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.

SHREYANS INDUSTRIES Income Statement Analysis

• Operating income during the year rose 48.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 965.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.3% in FY23 as against 1.7% in FY22.
• Depreciation charges increased by 2.7% and finance costs decreased by 1.2% YoY, respectively.
• Other income declined by 72.7% YoY.
• Net profit for the year grew by 637.8% YoY.
• Net profit margins during the year grew from 1.7% in FY22 to 8.5% in FY23.

SHREYANS INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,844	8,655	48.1%
Other income	Rs m	202	55	-72.7%
Total Revenues	Rs m	6,047	8,710	44.1%
Gross profit	Rs m	100	1,068	965.2%
Depreciation	Rs m	128	132	2.7%
Interest	Rs m	54	54	-1.2%
Profit before tax	Rs m	120	937	681.9%
Tax	Rs m	20	203	898.4%
Profit after tax	Rs m	100	735	637.8%
Gross profit margin	%	1.7	12.3
Effective tax rate	%	16.9	21.6
Net profit margin	%	1.7	8.5

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SHREYANS INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 5.7%.
• Long-term debt down at Rs 44 million as compared to Rs 198 million during FY22, a fall of 77.9%.
• Current assets rose 43% and stood at Rs 3 billion, while fixed assets fell 5% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 16%.

SHREYANS INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,319	3,019	30.2
Current Liabilities	Rs m	1,460	1,543	5.7
Long-term Debt	Rs m	198	44	-77.9
Total Liabilities	Rs m	4,313	4,993	15.8
Current assets	Rs m	1,887	2,697	42.9
Fixed Assets	Rs m	2,426	2,296	-5.4
Total Assets	Rs m	4,313	4,993	15.8

SHREYANS INDUSTRIES Cash Flow Statement Analysis

• SHREYANS INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 904 million, an improvement of 363.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -627 million, an improvement of 990.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -276 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 0 million from the Rs 1 million net cash flows seen during FY22.

SHREYANS 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	195	904	363.2%
Cash Flow from Investing Activities	Rs m	-58	-627	-
Cash Flow from Financing Activities	Rs m	-137	-276	-
Net Cash Flow	Rs m	1	0	-69.9%

Current Valuations for SHREYANS INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 53.1, an improvement from the EPS of Rs 7.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 142.3, stands at 2.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.7 times, while the price to sales ratio stands at 0.2 times.
• The company's price to cash flow (P/CF) ratio stood at 2.1 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	422.6	625.8
TTM Earnings per share	Rs	7.2	53.1
Diluted earnings per share	Rs	7.2	53.1
Price to Cash Flow	x	7.2	2.1
TTM P/E ratio	x	16.5	2.7
Price / Book Value ratio	x	0.7	0.6
Market Cap	Rs m	1,591	1,791
Dividends per share (Unadj.)	Rs	2.0	5.0

Ratio Analysis for SHREYANS INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.7x during FY23, from 1.3x 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 18.4x during FY23, from 3.2x 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 24.3% during FY23, from 4.3% 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 improved and stood at 32.4% during FY23, from 6.9% 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 15.8% during FY23, from 3.6% 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	1.3	1.7
Debtors’ Days	Days	201	155
Interest coverage	x	3.2	18.4
Debt to equity ratio	x	0.1	0.0
Return on assets	%	3.6	15.8
Return on equity	%	4.3	24.3
Return on capital employed	%	6.9	32.4

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

SHREYANS INDUSTRIES Share Price Performance

Over the last one year, SHREYANS INDUSTRIES share price has moved up from Rs 118.9 to Rs 142.3, registering a gain of Rs 23.5 or around 19.7%.

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

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