FIEM INDUSTRIES 2022-23 Annual Report Analysis

Sun, 9 Jul

FIEM INDUSTRIES 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.

FIEM INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.5% in FY23 as against 12.3% in FY22.
• Depreciation charges increased by 7.4% and finance costs decreased by 13.5% YoY, respectively.
• Other income grew by 315.8% YoY.
• Net profit for the year grew by 46.8% YoY.
• Net profit margins during the year grew from 6.1% in FY22 to 7.6% in FY23.

FIEM INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	15,723	18,481	17.5%
Other income	Rs m	26	108	315.8%
Total Revenues	Rs m	15,749	18,589	18.0%
Gross profit	Rs m	1,940	2,486	28.2%
Depreciation	Rs m	590	634	7.4%
Interest	Rs m	86	74	-13.5%
Profit before tax	Rs m	1,290	1,886	46.3%
Tax	Rs m	337	487	44.8%
Profit after tax	Rs m	953	1,399	46.8%
Gross profit margin	%	12.3	13.5
Effective tax rate	%	26.1	25.8
Net profit margin	%	6.1	7.6

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FIEM INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -30.8%.
• Current assets rose 2% and stood at Rs 5 billion, while fixed assets fell 1% and stood at Rs 5 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 11 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 0%.

FIEM INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,422	7,612	18.5
Current Liabilities	Rs m	3,373	2,334	-30.8
Long-term Debt	Rs m	75	0	-100.0
Total Liabilities	Rs m	10,485	10,530	0.4
Current assets	Rs m	5,201	5,320	2.3
Fixed Assets	Rs m	5,284	5,210	-1.4
Total Assets	Rs m	10,485	10,530	0.4

FIEM INDUSTRIES Cash Flow Statement Analysis

• FIEM INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 41.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 385 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -550 million, an improvement of 9% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 1 billion from the Rs -421 million net cash flows seen during FY22.

FIEM INDUSTRIES 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	923	1,309	41.9%
Cash Flow from Investing Activities	Rs m	-737	385	-
Cash Flow from Financing Activities	Rs m	-606	-550	-
Net Cash Flow	Rs m	-421	1,147	-

Current Valuations for FIEM INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 106.3, an improvement from the EPS of Rs 72.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,791.9, stands at 16.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.1 times, while the price to sales ratio stands at 1.3 times.
• The company's price to cash flow (P/CF) ratio stood at 9.3 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	1,194.7	1,404.3
TTM Earnings per share	Rs	72.4	106.3
Diluted earnings per share	Rs	72.4	106.3
Price to Cash Flow	x	7.7	9.3
TTM P/E ratio	x	12.4	16.9
Price / Book Value ratio	x	1.9	2.5
Market Cap	Rs m	12,519	18,980
Dividends per share (Unadj.)	Rs	20.0	30.0

Ratio Analysis for FIEM INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.5x 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 improved and stood at 26.4x during FY23, from 16.0x 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 improved and stood at 18.4% during FY23, from 14.8% 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 improved and stood at 25.8% during FY23, from 21.2% 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 improved and stood at 14.0% during FY23, from 9.9% 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	1.5	2.3
Debtors’ Days	Days	405	278
Interest coverage	x	16.0	26.4
Debt to equity ratio	x	0.0	0.0
Return on assets	%	9.9	14.0
Return on equity	%	14.8	18.4
Return on capital employed	%	21.2	25.8

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

FIEM INDUSTRIES Share Price Performance

Over the last one year, FIEM INDUSTRIES share price has moved up from Rs 1,519.9 to Rs 1,791.9, registering a gain of Rs 272.0 or around 17.9%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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