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SHYAM METALICS AND ENERGY 2022-23 Annual Report Analysis

Fri, 31 Mar

SHYAM METALICS AND ENERGY 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.

SHYAM METALICS AND ENERGY Income Statement Analysis

• Operating income during the year rose 21.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 42.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.7% in FY23 as against 24.5% in FY22.
• Depreciation charges increased by 70.0% and finance costs increased by 302.1% YoY, respectively.
• Other income grew by 9.1% YoY.
• Net profit for the year declined by 50.8% YoY.
• Net profit margins during the year declined from 16.6% in FY22 to 6.7% in FY23.

SHYAM METALICS AND ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	103,940	126,102	21.3%
Other income	Rs m	1,146	1,251	9.1%
Total Revenues	Rs m	105,086	127,353	21.2%
Gross profit	Rs m	25,453	14,730	-42.1%
Depreciation	Rs m	2,724	4,631	70.0%
Interest	Rs m	232	931	302.1%
Profit before tax	Rs m	23,643	10,418	-55.9%
Tax	Rs m	6,402	1,934	-69.8%
Profit after tax	Rs m	17,242	8,484	-50.8%
Gross profit margin	%	24.5	11.7
Effective tax rate	%	27.1	18.6
Net profit margin	%	16.6	6.7

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SHYAM METALICS AND ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 30 billion as compared to Rs 21 billion in FY22, thereby witnessing an increase of 38.5%.
• Long-term debt stood at Rs 3 billion as compared to Rs 1 billion during FY22, a growth of 163.7%.
• Current assets fell 8% and stood at Rs 43 billion, while fixed assets rose 84% and stood at Rs 69 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 112 billion as against Rs 84 billion during FY22, thereby witnessing a growth of 33%.

SHYAM METALICS AND ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	58,347	71,625	22.8
Current Liabilities	Rs m	21,499	29,769	38.5
Long-term Debt	Rs m	1,258	3,318	163.7
Total Liabilities	Rs m	84,250	111,887	32.8
Current assets	Rs m	46,737	43,012	-8.0
Fixed Assets	Rs m	37,513	68,874	83.6
Total Assets	Rs m	84,250	111,887	32.8

SHYAM METALICS AND ENERGY Cash Flow Statement Analysis

• SHYAM METALICS AND ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 15 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -20 billion, an improvement of 8.6% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 4 billion, an improvement of 158% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -171 million from the Rs -719 million net cash flows seen during FY22.

SHYAM METALICS AND ENERGY 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	15,612	15,069	-3.5%
Cash Flow from Investing Activities	Rs m	-17,999	-19,550	-
Cash Flow from Financing Activities	Rs m	1,668	4,310	158.4%
Net Cash Flow	Rs m	-719	-171	-

Current Valuations for SHYAM METALICS AND ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.3, an decline from the EPS of Rs 67.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 263.7, stands at 7.9 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 0.5 times.
• The company's price to cash flow (P/CF) ratio stood at 6.1 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	407.5	494.4
TTM Earnings per share	Rs	67.6	33.3
Diluted earnings per share	Rs	67.6	33.3
Price to Cash Flow	x	4.6	6.1
TTM P/E ratio	x	5.4	7.9
Price / Book Value ratio	x	1.6	1.1
Market Cap	Rs m	95,655	80,459
Dividends per share (Unadj.)	Rs	5.0	4.5

Ratio Analysis for SHYAM METALICS AND ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 2.2x 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 12.2x during FY23, from 103.1x 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 11.8% during FY23, from 29.6% 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 15.1% during FY23, from 40.1% 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 declined and down at 8.4% during FY23, from 20.7% 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	2.2	1.4
Debtors’ Days	Days	1	2
Interest coverage	x	103.1	12.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.7	8.4
Return on equity	%	29.6	11.8
Return on capital employed	%	40.1	15.1

To see how SHYAM METALICS AND ENERGY has performed over the last 5 years, please visit here.

SHYAM METALICS AND ENERGY Share Price Performance

Over the last one year, SHYAM METALICS AND ENERGY share price has moved down from Rs 362.0 to Rs 263.7, registering a loss of Rs 98.4 or around 27.2%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 19,184.9 (up 0.6%). Over the last one year it has moved down from 22,368.3 to 19,184.9, a loss of 3,183 points (down 14.2%).

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

(To know more, check out historical annual results for SHYAM METALICS AND ENERGY and quarterly results for SHYAM METALICS AND ENERGY)