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BIRLA CABLE 2022-23 Annual Report Analysis

Mon, 21 Aug

BIRLA CABLE 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.

BIRLA CABLE Income Statement Analysis

• Operating income during the year rose 48.0% on a year-on-year (YoY) basis.
• The company's operating profit increased by 45.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 8.0% in FY23 as against 8.1% in FY22.
• Depreciation charges decreased by 1.2% and finance costs increased by 109.7% YoY, respectively.
• Other income grew by 67.5% YoY.
• Net profit for the year grew by 51.5% YoY.
• Net profit margins during the year grew from 4.1% in FY22 to 4.2% in FY23.

BIRLA CABLE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,354	7,922	48.0%
Other income	Rs m	27	45	67.5%
Total Revenues	Rs m	5,381	7,967	48.0%
Gross profit	Rs m	435	630	45.0%
Depreciation	Rs m	108	106	-1.2%
Interest	Rs m	62	129	109.7%
Profit before tax	Rs m	292	440	50.4%
Tax	Rs m	75	110	47.1%
Profit after tax	Rs m	217	329	51.5%
Gross profit margin	%	8.1	8.0
Effective tax rate	%	25.6	25.1
Net profit margin	%	4.1	4.2

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BIRLA CABLE Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 7.5%.
• Long-term debt stood at Rs 640 million as compared to Rs 39 million during FY22, a growth of 1535.7%.
• Current assets rose 33% and stood at Rs 3 billion, while fixed assets rose 34% and stood at Rs 1 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 33%.

BIRLA CABLE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,865	2,294	23.0
Current Liabilities	Rs m	1,502	1,614	7.5
Long-term Debt	Rs m	39	640	1,535.7
Total Liabilities	Rs m	3,460	4,607	33.2
Current assets	Rs m	2,537	3,370	32.8
Fixed Assets	Rs m	923	1,233	33.6
Total Assets	Rs m	3,460	4,607	33.2

BIRLA CABLE Cash Flow Statement Analysis

• BIRLA CABLE's cash flow from operating activities (CFO) during FY23 stood at Rs -78 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -221 million, an improvement of 311.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 305 million, an improvement of 838% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 5 million from the Rs 4 million net cash flows seen during FY22.

BIRLA CABLE 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	25	-78	-
Cash Flow from Investing Activities	Rs m	-54	-221	-
Cash Flow from Financing Activities	Rs m	32	305	838.3%
Net Cash Flow	Rs m	4	5	30.9%

Current Valuations for BIRLA CABLE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 11.0, an improvement from the EPS of Rs 7.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 251.7, stands at 18.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.3 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 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	178.5	264.1
TTM Earnings per share	Rs	7.2	11.0
Diluted earnings per share	Rs	7.2	11.0
Price to Cash Flow	x	14.4	9.2
TTM P/E ratio	x	21.6	18.1
Price / Book Value ratio	x	1.9	1.7
Market Cap	Rs m	3,476	4,005
Dividends per share (Unadj.)	Rs	1.5	2.5

Ratio Analysis for BIRLA CABLE

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during FY23, from 1.7x 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 4.4x during FY23, from 5.7x 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 14.4% during FY23, from 11.7% 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 19.4% during FY23, from 18.6% 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 10.0% during FY23, from 8.1% 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	1.7	2.1
Debtors’ Days	Days	1,058	997
Interest coverage	x	5.7	4.4
Debt to equity ratio	x	0.0	0.3
Return on assets	%	8.1	10.0
Return on equity	%	11.7	14.4
Return on capital employed	%	18.6	19.4

To see how BIRLA CABLE has performed over the last 5 years, please visit here.

BIRLA CABLE Share Price Performance

Over the last one year, BIRLA CABLE share price has moved up from Rs 121.2 to Rs 251.7, registering a gain of Rs 130.6 or around 107.8%.

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

(To know more, check out historical annual results for BIRLA CABLE and quarterly results for BIRLA CABLE)