SYMPHONY 2022-23 Annual Report Analysis

Mon, 17 Jul

SYMPHONY 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.

SYMPHONY Income Statement Analysis

• Operating income during the year rose 14.3% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 13.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.8% in FY23 as against 15.6% in FY22.
• Depreciation charges increased by 9.4% and finance costs increased by 12.5% YoY, respectively.
• Other income grew by 25.8% YoY.
• Net profit for the year declined by 4.1% YoY.
• Net profit margins during the year declined from 11.6% in FY22 to 9.8% in FY23.

SYMPHONY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,391	11,876	14.3%
Other income	Rs m	399	502	25.8%
Total Revenues	Rs m	10,790	12,378	14.7%
Gross profit	Rs m	1,621	1,398	-13.8%
Depreciation	Rs m	242	265	9.4%
Interest	Rs m	104	116	12.5%
Profit before tax	Rs m	1,675	1,519	-9.3%
Tax	Rs m	467	361	-22.7%
Profit after tax	Rs m	1,209	1,159	-4.1%
Gross profit margin	%	15.6	11.8
Effective tax rate	%	27.9	23.7
Net profit margin	%	11.6	9.8

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SYMPHONY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 5 billion as compared to Rs 4 billion in FY22, thereby witnessing an increase of 14.3%.
• Long-term debt down at Rs 827 million as compared to Rs 1 billion during FY22, a fall of 26.8%.
• Current assets fell 11% and stood at Rs 8 billion, while fixed assets rose 26% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 14 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 3%.

SYMPHONY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	8,395	8,809	4.9
Current Liabilities	Rs m	3,954	4,519	14.3
Long-term Debt	Rs m	1,130	827	-26.8
Total Liabilities	Rs m	13,929	14,359	3.1
Current assets	Rs m	8,674	7,737	-10.8
Fixed Assets	Rs m	5,255	6,622	26.0
Total Assets	Rs m	13,929	14,359	3.1

SYMPHONY Cash Flow Statement Analysis

• SYMPHONY's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 120.0% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -114 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -103 million from the Rs 294 million net cash flows seen during FY22.

SYMPHONY 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	568	1,251	120.0%
Cash Flow from Investing Activities	Rs m	63	-114	-
Cash Flow from Financing Activities	Rs m	-338	-1,237	-
Net Cash Flow	Rs m	294	-103	-

Current Valuations for SYMPHONY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.6, an decline from the EPS of Rs 17.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 876.9, stands at 52.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 5.2 times.
• The company's price to cash flow (P/CF) ratio stood at 50.1 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	148.5	169.7
TTM Earnings per share	Rs	17.3	16.6
Diluted earnings per share	Rs	17.5	16.8
Price to Cash Flow	x	52.2	50.1
TTM P/E ratio	x	62.5	52.1
Price / Book Value ratio	x	9.4	8.1
Market Cap	Rs m	78,981	71,354
Dividends per share (Unadj.)	Rs	9.0	5.0

Ratio Analysis for SYMPHONY

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x 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 14.1x during FY23, from 17.2x 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 declined and down at 13.2% during FY23, from 14.4% 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 17.0% during FY23, from 18.7% 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 8.9% during FY23, from 9.4% 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	2.2	1.7
Debtors’ Days	Days	7	4
Interest coverage	x	17.2	14.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.4	8.9
Return on equity	%	14.4	13.2
Return on capital employed	%	18.7	17.0

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

SYMPHONY Share Price Performance

Over the last one year, SYMPHONY share price has moved up from Rs 854.1 to Rs 876.9, registering a gain of Rs 22.8 or around 2.7%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 42,838.6 (up 0.1%). Over the last one year it has moved up from 38,168.9 to 42,838.6, a gain of 4,670 points (up 12.2%).

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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