ASHOK LEYLAND 2022-23 Annual Report Analysis

Fri, 30 Jun

ASHOK LEYLAND 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.

ASHOK LEYLAND Income Statement Analysis

• Operating income during the year rose 37.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 23.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.3% in FY23 as against 9.3% in FY22.
• Depreciation charges decreased by 15.5% and finance costs decreased by 84.5% YoY, respectively.
• Other income grew by 19.1% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 1.1% in FY22 to 3.8% in FY23.

ASHOK LEYLAND Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	262,372	361,441	37.8%
Other income	Rs m	976	1,161	19.1%
Total Revenues	Rs m	263,347	362,603	37.7%
Gross profit	Rs m	24,379	30,153	23.7%
Depreciation	Rs m	8,660	7,320	-15.5%
Interest	Rs m	18,691	2,891	-84.5%
Profit before tax	Rs m	-1,996	21,104	NA
Tax	Rs m	859	7,303	750.6%
Profit after tax	Rs m	-2,855	13,801	NA
Gross profit margin	%	9.3	8.3
Effective tax rate	%	-43.0	34.6
Net profit margin	%	-1.1	3.8

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ASHOK LEYLAND Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 111 billion as compared to Rs 186 billion in FY22, thereby witnessing an decrease of -40.5%.
• Long-term debt down at Rs 18 billion as compared to Rs 153 billion during FY22, a fall of 88.5%.
• Current assets fell 37% and stood at Rs 116 billion, while fixed assets fell 56% and stood at Rs 109 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 226 billion as against Rs 436 billion during FY22, thereby witnessing a fall of 48%.

ASHOK LEYLAND Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	72,624	83,879	15.5
Current Liabilities	Rs m	186,041	110,619	-40.5
Long-term Debt	Rs m	152,973	17,662	-88.5
Total Liabilities	Rs m	435,737	225,916	-48.2
Current assets	Rs m	185,506	116,317	-37.3
Fixed Assets	Rs m	249,594	108,880	-56.4
Total Assets	Rs m	435,737	225,916	-48.2

ASHOK LEYLAND Cash Flow Statement Analysis

• ASHOK LEYLAND's cash flow from operating activities (CFO) during FY23 stood at Rs 21 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -17 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -9 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -5 billion from the Rs 5 billion net cash flows seen during FY22.

ASHOK LEYLAND 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	28,446	21,360	-24.9%
Cash Flow from Investing Activities	Rs m	-19,167	-17,345	-
Cash Flow from Financing Activities	Rs m	-3,776	-9,402	-
Net Cash Flow	Rs m	5,499	-5,401	-

Current Valuations for ASHOK LEYLAND

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.7, an improvement from the EPS of Rs -1.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 167.7, stands at 36.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 19.6 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	89.4	123.1
TTM Earnings per share	Rs	-1.0	4.7
Diluted earnings per share	Rs	-1.0	4.7
Price to Cash Flow	x	59.3	19.6
TTM P/E ratio	x	-117.5	36.4
Price / Book Value ratio	x	5.0	4.9
Market Cap	Rs m	361,951	414,496
Dividends per share (Unadj.)	Rs	1.0	2.6

Ratio Analysis for ASHOK LEYLAND

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x 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 8.3x during FY23, from 0.9x 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 improved and stood at 16.5% during FY23, from -3.9% 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 23.6% during FY23, from 7.4% 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 7.4% during FY23, from 3.6% 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	1.0	1.1
Debtors’ Days	Days	5	4
Interest coverage	x	0.9	8.3
Debt to equity ratio	x	2.1	0.2
Return on assets	%	3.6	7.4
Return on equity	%	-3.9	16.5
Return on capital employed	%	7.4	23.6

To see how ASHOK LEYLAND has performed over the last 5 years, please visit here.

ASHOK LEYLAND Share Price Performance

Over the last one year, ASHOK LEYLAND share price has moved up from Rs 147.9 to Rs 167.7, registering a gain of Rs 19.8 or around 13.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 34,843.6 (up 1.6%). Over the last one year it has moved up from 26,768.2 to 34,843.6, a gain of 8,075 points (up 30.2%).

Overall, the S&P BSE SENSEX is up 21.2% over the year.

(To know more, check out historical annual results for ASHOK LEYLAND and quarterly results for ASHOK LEYLAND)