SHREYAS SHIPPING 2022-23 Annual Report Analysis

Thu, 31 Aug

SHREYAS SHIPPING 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.

SHREYAS SHIPPING Income Statement Analysis

• Operating income during the year fell 9.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.9% YoY during the fiscal. Operating profit margins witnessed a fall and down at 50.9% in FY23 as against 45.5% in FY22.
• Depreciation charges increased by 147.7% and finance costs increased by 52.9% YoY, respectively.
• Other income grew by 248.9% YoY.
• Net profit for the year declined by 6.7% YoY.
• Net profit margins during the year grew from 39.4% in FY22 to 40.7% in FY23.

SHREYAS SHIPPING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,358	4,838	-9.7%
Other income	Rs m	55	192	248.9%
Total Revenues	Rs m	5,413	5,030	-7.1%
Gross profit	Rs m	2,439	2,461	0.9%
Depreciation	Rs m	192	475	147.7%
Interest	Rs m	121	184	52.9%
Profit before tax	Rs m	2,182	1,994	-8.6%
Tax	Rs m	71	25	-65.1%
Profit after tax	Rs m	2,111	1,969	-6.7%
Gross profit margin	%	45.5	50.9
Effective tax rate	%	3.3	1.2
Net profit margin	%	39.4	40.7

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SHREYAS SHIPPING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 36.2%.
• Long-term debt stood at Rs 4 billion as compared to Rs 2 billion during FY22, a growth of 121.0%.
• Current assets fell 31% and stood at Rs 2 billion, while fixed assets rose 78% and stood at Rs 12 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 9 billion during FY22, thereby witnessing a growth of 49%.

SHREYAS SHIPPING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,293	8,188	30.1
Current Liabilities	Rs m	1,055	1,437	36.2
Long-term Debt	Rs m	1,774	3,919	121.0
Total Liabilities	Rs m	9,137	13,574	48.6
Current assets	Rs m	2,457	1,695	-31.0
Fixed Assets	Rs m	6,680	11,879	77.8
Total Assets	Rs m	9,137	13,574	48.6

SHREYAS SHIPPING Cash Flow Statement Analysis

• SHREYAS SHIPPING's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 95.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -5 billion, an improvement of 533.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 2 billion, an improvement of 1,389% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -400 million from the Rs 551 million net cash flows seen during FY22.

SHREYAS SHIPPING 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	1,184	2,314	95.4%
Cash Flow from Investing Activities	Rs m	-786	-4,981	-
Cash Flow from Financing Activities	Rs m	152	2,267	1,388.8%
Net Cash Flow	Rs m	551	-400	-

Current Valuations for SHREYAS SHIPPING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 89.7, an decline from the EPS of Rs 96.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 339.1, stands at 6.0 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 1.5 times.
• The company's price to cash flow (P/CF) ratio stood at 2.9 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	244.0	220.3
TTM Earnings per share	Rs	96.1	89.7
Diluted earnings per share	Rs	96.1	89.7
Price to Cash Flow	x	3.6	2.9
TTM P/E ratio	x	4.0	6.0
Price / Book Value ratio	x	0.9	0.9
Market Cap	Rs m	5,699	7,045
Dividends per share (Unadj.)	Rs	2.5	1.5

Ratio Analysis for SHREYAS SHIPPING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x 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 deteriorated and stood at 11.8x during FY23, from 19.1x 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 24.0% during FY23, from 33.5% 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 18.0% during FY23, from 28.5% 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 15.9% during FY23, from 24.4% 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	1.2
Debtors’ Days	Days	76	47
Interest coverage	x	19.1	11.8
Debt to equity ratio	x	0.3	0.5
Return on assets	%	24.4	15.9
Return on equity	%	33.5	24.0
Return on capital employed	%	28.5	18.0

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

SHREYAS SHIPPING Share Price Performance

Over the last one year, SHREYAS SHIPPING share price has moved down from Rs 382.3 to Rs 339.1, registering a loss of Rs 43.2 or around 11.3%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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