AUTOMOTIVE AXLES 2022-23 Annual Report Analysis

Mon, 17 Jul

AUTOMOTIVE AXLES 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.

AUTOMOTIVE AXLES Income Statement Analysis

• Operating income during the year rose 55.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 91.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 11.1% in FY23 as against 9.0% in FY22.
• Depreciation charges increased by 13.6% and finance costs increased by 18.2% YoY, respectively.
• Other income grew by 15.5% YoY.
• Net profit for the year grew by 117.9% YoY.
• Net profit margins during the year grew from 5.0% in FY22 to 7.0% in FY23.

AUTOMOTIVE AXLES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	14,906	23,237	55.9%
Other income	Rs m	43	49	15.5%
Total Revenues	Rs m	14,949	23,286	55.8%
Gross profit	Rs m	1,347	2,575	91.2%
Depreciation	Rs m	364	414	13.6%
Interest	Rs m	25	29	18.2%
Profit before tax	Rs m	1,001	2,181	118.0%
Tax	Rs m	257	561	118.2%
Profit after tax	Rs m	744	1,620	117.9%
Gross profit margin	%	9.0	11.1
Effective tax rate	%	25.7	25.7
Net profit margin	%	5.0	7.0

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AUTOMOTIVE AXLES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 4 billion as compared to Rs 4 billion in FY22, thereby witnessing an decrease of -6.5%.
• Long-term debt down at Rs 63 million as compared to Rs 104 million during FY22, a fall of 40.0%.
• Current assets rose 17% and stood at Rs 9 billion, while fixed assets fell 4% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 12 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 11%.

AUTOMOTIVE AXLES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,211	7,593	22.3
Current Liabilities	Rs m	3,972	3,716	-6.5
Long-term Debt	Rs m	104	63	-40.0
Total Liabilities	Rs m	10,372	11,517	11.0
Current assets	Rs m	7,548	8,813	16.8
Fixed Assets	Rs m	2,825	2,703	-4.3
Total Assets	Rs m	10,372	11,517	11.0

AUTOMOTIVE AXLES Cash Flow Statement Analysis

• AUTOMOTIVE AXLES's cash flow from operating activities (CFO) during FY23 stood at Rs 516 million, an improvement of 19.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -837 million, an improvement of 215.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -309 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -630 million from the Rs 16 million net cash flows seen during FY22.

AUTOMOTIVE AXLES 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	433	516	19.2%
Cash Flow from Investing Activities	Rs m	-265	-837	-
Cash Flow from Financing Activities	Rs m	-152	-309	-
Net Cash Flow	Rs m	16	-630	-

Current Valuations for AUTOMOTIVE AXLES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 107.2, an improvement from the EPS of Rs 49.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,218.0, stands at 20.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 4.4 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 15.1 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	986.5	1,537.9
TTM Earnings per share	Rs	49.2	107.2
Diluted earnings per share	Rs	49.2	107.2
Price to Cash Flow	x	23.5	15.1
TTM P/E ratio	x	35.0	20.7
Price / Book Value ratio	x	3.3	4.0
Market Cap	Rs m	20,499	30,722
Dividends per share (Unadj.)	Rs	15.0	32.0

Ratio Analysis for AUTOMOTIVE AXLES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x 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 improved and stood at 75.8x during FY23, from 41.6x 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 21.3% during FY23, from 12.0% 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 28.9% during FY23, from 16.2% 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 14.3% during FY23, from 7.4% 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	2.4
Debtors’ Days	Days	95	78
Interest coverage	x	41.6	75.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	7.4	14.3
Return on equity	%	12.0	21.3
Return on capital employed	%	16.2	28.9

To see how AUTOMOTIVE AXLES has performed over the last 5 years, please visit here.

AUTOMOTIVE AXLES Share Price Performance

Over the last one year, AUTOMOTIVE AXLES share price has moved up from Rs 1,857.0 to Rs 2,218.0, registering a gain of Rs 361.0 or around 19.4%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

(To know more, check out historical annual results for AUTOMOTIVE AXLES and quarterly results for AUTOMOTIVE AXLES)