Services Industries Ltd (SRVI) has shown remarkable financial performance, reporting a net earnings growth of Rs2.8 billion in 2023 compared to a loss of Rs637 million in 2022. In the first quarter of 2024, the company’s net earnings grew 2.5 times, reflecting contributions from Service Long March (SLM) and growth in SRVI’s own business and that of its subsidiary, Service Global Footwear (SGF).
In the last one year, its share price has increased over 250%!
| Metric | CY23 | 1QCY24 |
|---|---|---|
| Net Earnings | Rs2.8 billion | 2.5x growth |
| Earnings Per Share (EPS) | Rs28.56 | Rs15.61 |
The substantial increase in SRVI’s earnings was primarily driven by higher export volumes in the tyre business, favorable currency devaluation impacting pricing, and expansion in both retail and online footwear sales. In the first quarter of 2024, SRVI reported a 30% year-over-year growth in revenue, supported by both tyre and footwear segments through increased volumes and pricing.
| Segment | 1QCY24 Revenue Growth |
|---|---|
| Overall | 30% YoY |
| Tyre | – |
| Footwear | – |
Looking ahead, SRVI’s management is focused on achieving 30-40% growth in 2024, driven by a projected 15%+ volumetric growth across all business segments. To meet the strong demand from agricultural vehicles, SRVI plans to increase its tyre business capacity by 10% by December 2024.
Additionally, the company aims to expand its retail footwear outlets from 250 in May 2024 to 300 by December 2024 and 350 by December 2025.
| Target | May 2024 | Dec 2024 | Dec 2025 |
|---|---|---|---|
| Retail Outlets | 250 | 300 | 350 |
Disclaimer:
The information in this article is based on research by JS Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
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