SREE RAYAL 2022-23 Annual Report Analysis

Thu, 8 Feb

SREE RAYAL 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.

SREE RAYAL Income Statement Analysis

• Operating income during the year rose 30.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.9% in FY23 as against 11.7% in FY22.
• Depreciation charges increased by 0.6% and finance costs increased by 48.1% YoY, respectively.
• Other income grew by 224.0% YoY.
• Net profit for the year grew by 50.1% YoY.
• Net profit margins during the year grew from 8.1% in FY22 to 9.3% in FY23.

SREE RAYAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	12,673	16,501	30.2%
Other income	Rs m	107	346	224.0%
Total Revenues	Rs m	12,780	16,847	31.8%
Gross profit	Rs m	1,487	1,799	21.0%
Depreciation	Rs m	192	193	0.6%
Interest	Rs m	32	48	48.1%
Profit before tax	Rs m	1,370	1,904	39.0%
Tax	Rs m	342	362	5.7%
Profit after tax	Rs m	1,028	1,543	50.1%
Gross profit margin	%	11.7	10.9
Effective tax rate	%	25.0	19.0
Net profit margin	%	8.1	9.3

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SREE RAYAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -9.6%.
• Long-term debt stood at Rs 32 million as compared to Rs 3 million during FY22, a growth of 993.9%.
• Current assets rose 20% and stood at Rs 7 billion, while fixed assets rose 13% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 17%.

SREE RAYAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,703	7,509	31.7
Current Liabilities	Rs m	3,023	2,733	-9.6
Long-term Debt	Rs m	3	32	993.9
Total Liabilities	Rs m	8,785	10,312	17.4
Current assets	Rs m	5,792	6,944	19.9
Fixed Assets	Rs m	2,992	3,368	12.5
Total Assets	Rs m	8,785	10,312	17.4

SREE RAYAL Cash Flow Statement Analysis

• SREE RAYAL's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 141.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 9,502.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -196 million, an improvement of 62% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 125 million from the Rs 73 million net cash flows seen during FY22.

SREE RAYAL 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	598	1,444	141.7%
Cash Flow from Investing Activities	Rs m	-12	-1,123	-
Cash Flow from Financing Activities	Rs m	-513	-196	-
Net Cash Flow	Rs m	73	125	72.4%

Current Valuations for SREE RAYAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 89.9, an improvement from the EPS of Rs 59.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 411.5, stands at 4.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 6.5 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	738.5	961.6
TTM Earnings per share	Rs	59.9	89.9
Diluted earnings per share	Rs	59.9	89.9
Price to Cash Flow	x	6.7	6.5
TTM P/E ratio	x	7.9	4.6
Price / Book Value ratio	x	1.1	1.5
Market Cap	Rs m	6,484	11,271
Dividends per share (Unadj.)	Rs	3.5	4.0

Ratio Analysis for SREE RAYAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.5x during FY23, from 1.9x 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 41.1x during FY23, from 43.7x 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 20.5% during FY23, from 18.0% 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 improved and stood at 25.9% during FY23, from 24.6% 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 15.4% during FY23, from 12.1% 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	1.9	2.5
Debtors’ Days	Days	380	330
Interest coverage	x	43.7	41.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.1	15.4
Return on equity	%	18.0	20.5
Return on capital employed	%	24.6	25.9

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

SREE RAYAL Share Price Performance

Over the last one year, SREE RAYAL share price has moved down from Rs 473.7 to Rs 411.5, registering a loss of Rs 62.3 or around 13.1%.

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

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