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IKIO LIGHTNING 2022-23 Annual Report Analysis

Tue, 12 Sep

IKIO LIGHTNING 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.

IKIO LIGHTNING Income Statement Analysis

• Operating income during the year rose 8.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 0.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.6% in FY23 as against 23.3% in FY22.
• Depreciation charges increased by 13.9% and finance costs increased by 82.3% YoY, respectively.
• Other income grew by 47.0% YoY.
• Net profit for the year declined by 0.9% YoY.
• Net profit margins during the year declined from 15.2% in FY22 to 13.9% in FY23.

IKIO LIGHTNING Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,318	3,588	8.1%
Other income	Rs m	22	32	47.0%
Total Revenues	Rs m	3,340	3,619	8.4%
Gross profit	Rs m	774	776	0.2%
Depreciation	Rs m	51	58	13.9%
Interest	Rs m	50	91	82.3%
Profit before tax	Rs m	695	658	-5.2%
Tax	Rs m	190	158	-16.7%
Profit after tax	Rs m	505	500	-0.9%
Gross profit margin	%	23.3	21.6
Effective tax rate	%	27.3	24.0
Net profit margin	%	15.2	13.9

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IKIO LIGHTNING Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 47.4%.
• Long-term debt down at Rs 12 million as compared to Rs 387 million during FY22, a fall of 97.0%.
• Current assets rose 13% and stood at Rs 2 billion, while fixed assets rose 28% and stood at Rs 959 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 3 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 18%.

IKIO LIGHTNING Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,089	1,422	30.6
Current Liabilities	Rs m	1,069	1,575	47.4
Long-term Debt	Rs m	387	12	-97.0
Total Liabilities	Rs m	2,631	3,097	17.7
Current assets	Rs m	1,885	2,138	13.5
Fixed Assets	Rs m	747	959	28.4
Total Assets	Rs m	2,631	3,097	17.7

IKIO LIGHTNING Cash Flow Statement Analysis

• IKIO LIGHTNING's cash flow from operating activities (CFO) during FY23 stood at Rs 568 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -499 million, an improvement of 441.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -77 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 17 million from the Rs -11 million net cash flows seen during FY22.

IKIO LIGHTNING 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	-155	568	-
Cash Flow from Investing Activities	Rs m	-92	-499	-
Cash Flow from Financing Activities	Rs m	236	-77	-
Net Cash Flow	Rs m	-11	17	-

Current Valuations for IKIO LIGHTNING

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.7, an decline from the EPS of Rs 20.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 363.1, stands at 56.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 19.7 times, while the price to sales ratio stands at 6.6 times.
• The company's price to cash flow (P/CF) ratio stood at 50.3 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	132.7	55.2
TTM Earnings per share	Rs	20.2	7.7
Diluted earnings per share	Rs	6.5	6.5
Price to Cash Flow	x	0.0	50.3
TTM P/E ratio	x	0.0	56.1
Price / Book Value ratio	x	0.0	0.0
Market Cap	Rs m	0	28,061
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for IKIO LIGHTNING

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.8x 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 8.2x during FY23, from 14.9x 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 35.2% during FY23, from 46.4% 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 improved and stood at 52.3% during FY23, from 50.5% 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 19.1% during FY23, from 21.1% 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	1.8	1.4
Debtors’ Days	Days	61	74
Interest coverage	x	14.9	8.2
Debt to equity ratio	x	0.4	0.0
Return on assets	%	21.1	19.1
Return on equity	%	46.4	35.2
Return on capital employed	%	50.5	52.3

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

IKIO LIGHTNING Share Price Performance

Over the last one year, IKIO LIGHTNING share price has moved up from Rs 0.0 to Rs 363.1, registering a gain of Rs 363.1 or around 0.0%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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