Sagility India Ltd Share Price and Key Insights 2023

• Market Cap
  ₹ 14,044 Cr.

• Current Price
  ₹

• High / Low
  ₹ /

• Stock P/E
  61.7

• ROCE
  4.71 %

• ROE
  3.60 %

Pros

• The company has successfully reduced its overall debt, positioning itself for sustainable growth.
• Debtor days have significantly improved from 183 days to an impressive 90.7 days, indicating better cash flow management.
• Working capital requirements have decreased from 55.0 days to 24.5 days, showcasing efficiency in operations.

* The pros and cons are machine generated.

Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

	Jun 2023	Jun 2024
Sales +	1,116	1,223
Expenses +	852	1,029
Operating Profit	264	194
OPM %	24%	16%
Other Income +	11	24
Interest	47	37
Depreciation	166	110
Profit before tax	62	71
Tax %	31%	69%
Net Profit +	42	22

	Mar 2022	Mar 2023	Mar 2024
Sales +	923	4,218	4,754
Expenses +	730	3,179	3,665
Operating Profit	193	1,039	1,088
OPM %	21%	25%	23%
Other Income +	18	5	28
Interest	65	215	185
Depreciation	147	644	689
Profit before tax	-2	186	242
Tax %	152%	23%	6%
Net Profit +	-5	144	228

	Mar 2022	Mar 2023	Mar 2024
Equity Capital	1,919	1,919	4,285
Reserves	2,108	4,288	2,158
Borrowings +	4,788	2,896	2,532
Total Liabilities	10,085	10,529	10,529
Investments	0	0	0
Total Assets	10,085	10,529	10,529

	Mar 2022	Mar 2023	Mar 2024
Debtor Days	366	92	91
Cash Conversion Cycle	366	92	91

Shareholding Pattern

Numbers in percentages

Shareholding pattern is currently not available for this company.

Documents

Audiocostruzioni – ⁤il gruppo

Fit ‌+ -5 144 226

### Summary Analysis

The financial data presents a⁤ mixed bag of results for the company. ‍Here’s a summary of the key points:

#### ​Financial Metrics:

-​ **Sales Growth**: ⁣From Mar 2022 to Mar 2024, sales increased from ₹923 Crores to ₹4,754 Crores, indicating strong growth. However, the projected sales for Jun 2024 of ₹1,223‌ Crores represents​ a slower growth compared to​ the previous year.

– **Expense⁤ Management**: ⁤Expenses ​have also risen, but at ‌a somewhat controlled rate, showing efficient scaling.⁢ For example, expenses⁣ rose from ₹730 Crores in Mar 2022 to ₹3,665 Crores in Mar⁣ 2024.

– **Operating⁤ Profit ⁣Margin (OPM)**: OPM decreased from 25% in Mar 2023 to ⁢23% in Mar 2024, suggesting‌ potential challenges in​ maintaining⁤ profitability in line with revenue growth.

– **Net Profit**: There ⁤is a⁤ significant recovery in net profit from a loss of ₹5 ‍Crores in ⁢Mar 2022 to a profit of ₹226 Crores in Mar 2024. Nevertheless, the‌ net profit for Jun 2024 is projected to drop significantly to ₹22⁣ Crores⁢ compared⁤ to⁣ ₹42 Crores in Jun 2023.

#### Returns and Ratios:

– The **Stock P/E ratio** of 61.7 suggests that the stock is priced high relative to its‍ earnings, which may imply investor optimism,⁢ though it also suggests pressure on future earnings growth.

-​ **Return on Capital Employed (ROCE)** stands at 4.71%, and **Return on Equity (ROE)** is at 3.60%, both of‌ which seem⁤ relatively low and indicate that the company is not generating a high return relative to its capital or equity.

#### Pros:

1. The company has successfully reduced debt, which is ⁣generally positive for long-term sustainability.

2. Improved debtor days from 183⁣ to ‍90.7 reflects better cash flow management.

3.⁢ Decreased working capital ‌requirements enhance operational efficiency.

###⁢ Conclusion

While the company’s sales and net profit have shown substantial recovery and growth over the past few years, the decreasing operating ⁣profit margin and ‍projected decline in ⁣net profit‌ raise concerns about sustainability. The improvements in debt, cash‌ flow management, and efficiency add to the positive outlook, ‍but the overall financial health needs to be monitored ​closely in⁣ the context of rising expenses⁤ and profitability challenges.

Investors should perform detailed analyses and consider these‍ factors along with market conditions before making⁣ investment⁤ decisions.