SURAJ STAINLESS 2022-23 Annual Report Analysis

Wed, 17 May

SURAJ STAINLESS 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.

SURAJ STAINLESS Income Statement Analysis

• Operating income during the year rose 6.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 181.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.5% in FY23 as against 3.6% in FY22.
• Depreciation charges increased by 9.2% and finance costs decreased by 27.1% YoY, respectively.
• Other income grew by 12.4% YoY.
• Net profit for the year grew by 570.4% YoY.
• Net profit margins during the year grew from 0.9% in FY22 to 5.5% in FY23.

SURAJ STAINLESS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,437	3,666	6.7%
Other income	Rs m	50	57	12.4%
Total Revenues	Rs m	3,488	3,723	6.7%
Gross profit	Rs m	124	350	181.2%
Depreciation	Rs m	73	79	9.2%
Interest	Rs m	56	41	-27.1%
Profit before tax	Rs m	46	286	521.5%
Tax	Rs m	16	85	430.1%
Profit after tax	Rs m	30	201	570.4%
Gross profit margin	%	3.6	9.5
Effective tax rate	%	34.8	29.7
Net profit margin	%	0.9	5.5

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SURAJ STAINLESS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 417 million as compared to Rs 650 million in FY22, thereby witnessing an decrease of -35.9%.
• Current assets fell 21% and stood at Rs 856 million, while fixed assets rose 23% and stood at Rs 601 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 1 billion as against Rs 2 billion during FY22, thereby witnessing a fall of 7%.

SURAJ STAINLESS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	922	1,038	12.6
Current Liabilities	Rs m	650	417	-35.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	1,576	1,457	-7.5
Current assets	Rs m	1,085	856	-21.1
Fixed Assets	Rs m	490	601	22.6
Total Assets	Rs m	1,576	1,457	-7.5

SURAJ STAINLESS Cash Flow Statement Analysis

• SURAJ STAINLESS's cash flow from operating activities (CFO) during FY23 stood at Rs 446 million, an improvement of 34.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -185 million, an improvement of 172.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -263 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -2 million from the Rs 5 million net cash flows seen during FY22.

SURAJ STAINLESS 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	333	446	34.0%
Cash Flow from Investing Activities	Rs m	-68	-185	-
Cash Flow from Financing Activities	Rs m	-261	-263	-
Net Cash Flow	Rs m	5	-2	-

Current Valuations for SURAJ STAINLESS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an improvement from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 112.7, stands at 10.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 4.5 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	178.5	199.7
TTM Earnings per share	Rs	1.6	11.0
Diluted earnings per share	Rs	1.6	11.0
Price to Cash Flow	x	11.2	4.5
TTM P/E ratio	x	38.2	10.3
Price / Book Value ratio	x	1.7	1.2
Market Cap	Rs m	1,556	1,269
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SURAJ STAINLESS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 1.7x 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 8.0x during FY23, from 1.8x 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 19.4% during FY23, from 3.3% 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 31.5% during FY23, from 11.1% 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 16.6% during FY23, from 5.5% 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	1.7	2.1
Debtors’ Days	Days	299	330
Interest coverage	x	1.8	8.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.5	16.6
Return on equity	%	3.3	19.4
Return on capital employed	%	11.1	31.5

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

SURAJ STAINLESS Share Price Performance

Over the last one year, SURAJ STAINLESS share price has moved up from Rs 71.0 to Rs 112.7, registering a gain of Rs 41.8 or around 58.8%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,705.1 (down 0.5%). Over the last one year it has moved up from 19,437.2 to 19,705.1, a gain of 268 points (up 1.4%).

Overall, the S&P BSE SENSEX is up 16.5% over the year.

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