20 MICRONS 2022-23 Annual Report Analysis

Tue, 22 Aug

20 MICRONS 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.

20 MICRONS Income Statement Analysis

• Operating income during the year rose 14.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 12.2% in FY23 as against 12.9% in FY22.
• Depreciation charges increased by 1.0% and finance costs decreased by 12.3% YoY, respectively.
• Other income grew by 35.3% YoY.
• Net profit for the year grew by 20.8% YoY.
• Net profit margins during the year grew from 5.7% in FY22 to 6.0% in FY23.

20 MICRONS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	6,132	7,017	14.4%
Other income	Rs m	22	29	35.3%
Total Revenues	Rs m	6,154	7,046	14.5%
Gross profit	Rs m	794	858	8.1%
Depreciation	Rs m	137	138	1.0%
Interest	Rs m	202	178	-12.3%
Profit before tax	Rs m	476	572	20.1%
Tax	Rs m	129	152	18.1%
Profit after tax	Rs m	347	420	20.8%
Gross profit margin	%	12.9	12.2
Effective tax rate	%	27.1	26.6
Net profit margin	%	5.7	6.0

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20 MICRONS Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -10.6%.
• Long-term debt down at Rs 186 million as compared to Rs 285 million during FY22, a fall of 34.8%.
• Current assets rose 1% and stood at Rs 3 billion, while fixed assets rose 3% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 2%.

20 MICRONS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,515	2,936	16.7
Current Liabilities	Rs m	2,150	1,921	-10.6
Long-term Debt	Rs m	285	186	-34.8
Total Liabilities	Rs m	5,235	5,349	2.2
Current assets	Rs m	2,832	2,867	1.3
Fixed Assets	Rs m	2,403	2,482	3.3
Total Assets	Rs m	5,235	5,349	2.2

20 MICRONS Cash Flow Statement Analysis

• 20 MICRONS's cash flow from operating activities (CFO) during FY23 stood at Rs 632 million, an improvement of 78.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -177 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -380 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 76 million from the Rs 85 million net cash flows seen during FY22.

20 MICRONS 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	353	632	78.9%
Cash Flow from Investing Activities	Rs m	-232	-177	-
Cash Flow from Financing Activities	Rs m	-36	-380	-
Net Cash Flow	Rs m	85	76	-11.6%

Current Valuations for 20 MICRONS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.9, an improvement from the EPS of Rs 9.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 111.5, stands at 9.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio stood at 5.7 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	173.8	198.8
TTM Earnings per share	Rs	9.8	11.9
Diluted earnings per share	Rs	9.8	11.9
Price to Cash Flow	x	5.4	5.7
TTM P/E ratio	x	7.5	9.0
Price / Book Value ratio	x	1.0	1.1
Market Cap	Rs m	2,426	3,156
Dividends per share (Unadj.)	Rs	0.0	0.8

Ratio Analysis for 20 MICRONS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.3x 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 4.2x during FY23, from 3.4x 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 14.3% during FY23, from 13.8% 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 declined and down at 24.0% during FY23, from 24.2% 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 11.2% during FY23, from 10.5% 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	1.3	1.5
Debtors’ Days	Days	596	507
Interest coverage	x	3.4	4.2
Debt to equity ratio	x	0.1	0.1
Return on assets	%	10.5	11.2
Return on equity	%	13.8	14.3
Return on capital employed	%	24.2	24.0

To see how 20 MICRONS has performed over the last 5 years, please visit here.

20 MICRONS Share Price Performance

Over the last one year, 20 MICRONS share price has moved up from Rs 107.4 to Rs 111.5, registering a gain of Rs 4.1 or around 3.8%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for 20 MICRONS and quarterly results for 20 MICRONS)