AMARA RAJA BATTERIES 2022-23 Annual Report Analysis

Fri, 21 Jul

AMARA RAJA BATTERIES 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.

AMARA RAJA BATTERIES Income Statement Analysis

• Operating income during the year rose 19.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 27.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.5% in FY23 as against 11.8% in FY22.
• Depreciation charges increased by 8.0% and finance costs increased by 46.2% YoY, respectively.
• Other income grew by 17.5% YoY.
• Net profit for the year grew by 35.5% YoY.
• Net profit margins during the year grew from 5.9% in FY22 to 6.7% in FY23.

AMARA RAJA BATTERIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	86,972	103,882	19.4%
Other income	Rs m	795	934	17.5%
Total Revenues	Rs m	87,767	104,816	19.4%
Gross profit	Rs m	10,224	13,031	27.5%
Depreciation	Rs m	3,957	4,272	8.0%
Interest	Rs m	151	221	46.2%
Profit before tax	Rs m	6,911	9,472	37.1%
Tax	Rs m	1,786	2,527	41.5%
Profit after tax	Rs m	5,126	6,945	35.5%
Gross profit margin	%	11.8	12.5
Effective tax rate	%	25.8	26.7
Net profit margin	%	5.9	6.7

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AMARA RAJA BATTERIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 15 billion as compared to Rs 15 billion in FY22, thereby witnessing an decrease of -4.9%.
• Long-term debt down at Rs 96 million as compared to Rs 165 million during FY22, a fall of 41.6%.
• Current assets rose 21% and stood at Rs 34 billion, while fixed assets rose 5% and stood at Rs 37 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 71 billion as against Rs 64 billion during FY22, thereby witnessing a growth of 12%.

AMARA RAJA BATTERIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	45,525	52,992	16.4
Current Liabilities	Rs m	15,265	14,519	-4.9
Long-term Debt	Rs m	165	96	-41.6
Total Liabilities	Rs m	63,761	71,230	11.7
Current assets	Rs m	28,248	34,081	20.6
Fixed Assets	Rs m	35,513	37,149	4.6
Total Assets	Rs m	63,761	71,230	11.7

AMARA RAJA BATTERIES Cash Flow Statement Analysis

• AMARA RAJA BATTERIES's cash flow from operating activities (CFO) during FY23 stood at Rs 9 billion, an improvement of 44.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -8 billion, an improvement of 56.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -1 billion, an improvement of 53% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 600 million from the Rs -621 million net cash flows seen during FY22.

AMARA RAJA BATTERIES 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	6,333	9,144	44.4%
Cash Flow from Investing Activities	Rs m	-4,819	-7,542	-
Cash Flow from Financing Activities	Rs m	-2,135	-1,004	-
Net Cash Flow	Rs m	-621	600	-

Current Valuations for AMARA RAJA BATTERIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.7, an improvement from the EPS of Rs 30.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 624.3, stands at 15.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.4 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	509.2	608.2
TTM Earnings per share	Rs	30.0	40.7
Diluted earnings per share	Rs	30.0	40.7
Price to Cash Flow	x	10.1	8.4
TTM P/E ratio	x	17.9	15.4
Price / Book Value ratio	x	2.6	1.8
Market Cap	Rs m	118,719	94,639
Dividends per share (Unadj.)	Rs	4.5	6.1

Ratio Analysis for AMARA RAJA BATTERIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.9x 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 43.9x during FY23, from 46.8x 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 13.1% during FY23, from 11.3% 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 18.3% during FY23, from 15.5% 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 improved and stood at 10.1% during FY23, from 8.3% 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	1.9	2.3
Debtors’ Days	Days	3	3
Interest coverage	x	46.8	43.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.3	10.1
Return on equity	%	11.3	13.1
Return on capital employed	%	15.5	18.3

To see how AMARA RAJA BATTERIES has performed over the last 5 years, please visit here.

AMARA RAJA BATTERIES Share Price Performance

Over the last one year, AMARA RAJA BATTERIES share price has moved up from Rs 482.3 to Rs 624.3, registering a gain of Rs 142.1 or around 29.5%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for AMARA RAJA BATTERIES and quarterly results for AMARA RAJA BATTERIES)