CENTURY ENKA 2022-23 Annual Report Analysis

Fri, 31 Mar

CENTURY ENKA 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.

CENTURY ENKA Income Statement Analysis

• Operating income during the year fell 1.2% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 46.2% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.9% in FY23 as against 12.6% in FY22.
• Depreciation charges increased by 4.0% and finance costs increased by 89.5% YoY, respectively.
• Other income declined by 7.7% YoY.
• Net profit for the year declined by 51.0% YoY.
• Net profit margins during the year declined from 8.8% in FY22 to 4.4% in FY23.

CENTURY ENKA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	20,978	20,721	-1.2%
Other income	Rs m	206	190	-7.7%
Total Revenues	Rs m	21,185	20,911	-1.3%
Gross profit	Rs m	2,643	1,422	-46.2%
Depreciation	Rs m	396	412	4.0%
Interest	Rs m	12	24	89.5%
Profit before tax	Rs m	2,441	1,177	-51.8%
Tax	Rs m	599	274	-54.3%
Profit after tax	Rs m	1,842	903	-51.0%
Gross profit margin	%	12.6	6.9
Effective tax rate	%	24.5	23.2
Net profit margin	%	8.8	4.4

Download Now: 7 Unstoppable Growth Engines of India's $10 Trillion Bull Run...

CENTURY ENKA 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 -12.2%.
• Long-term debt stood at Rs 487 million as compared to Rs 62 million during FY22, a growth of 690.6%.
• Current assets fell 11% and stood at Rs 8 billion, while fixed assets rose 34% and stood at Rs 8 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 16 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 7%.

CENTURY ENKA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	12,507	13,217	5.7
Current Liabilities	Rs m	1,720	1,511	-12.2
Long-term Debt	Rs m	62	487	690.6
Total Liabilities	Rs m	15,226	16,226	6.6
Current assets	Rs m	9,167	8,204	-10.5
Fixed Assets	Rs m	5,969	8,022	34.4
Total Assets	Rs m	15,226	16,226	6.6

CENTURY ENKA Cash Flow Statement Analysis

• CENTURY ENKA's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 294.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -3 billion, an improvement of 508.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 292 million, an improvement of 272% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -29 million from the Rs -27 million net cash flows seen during FY22.

CENTURY ENKA 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	556	2,193	294.7%
Cash Flow from Investing Activities	Rs m	-413	-2,513	-
Cash Flow from Financing Activities	Rs m	-170	292	-
Net Cash Flow	Rs m	-27	-29	-

Current Valuations for CENTURY ENKA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 41.3, an decline from the EPS of Rs 84.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 343.9, stands at 8.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.6 times, while the price to sales ratio stands at 0.4 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	960.1	948.3
TTM Earnings per share	Rs	84.3	41.3
Diluted earnings per share	Rs	84.3	41.3
Price to Cash Flow	x	5.4	8.4
TTM P/E ratio	x	6.6	8.3
Price / Book Value ratio	x	0.8	0.8
Market Cap	Rs m	9,608	11,056
Dividends per share (Unadj.)	Rs	10.0	10.0

Ratio Analysis for CENTURY ENKA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.4x during FY23, from 5.3x 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 deteriorated and stood at 51.1x during FY23, from 197.8x 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 declined and down at 6.8% during FY23, from 14.7% 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 declined and down at 8.8% during FY23, from 19.5% 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 declined and down at 5.7% during FY23, from 12.2% 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	5.3	5.4
Debtors’ Days	Days	416	382
Interest coverage	x	197.8	51.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.2	5.7
Return on equity	%	14.7	6.8
Return on capital employed	%	19.5	8.8

To see how CENTURY ENKA has performed over the last 5 years, please visit here.

CENTURY ENKA Share Price Performance

Over the last one year, CENTURY ENKA share price has moved down from Rs 556.5 to Rs 343.9, registering a loss of Rs 212.6 or around 38.2%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

(To know more, check out historical annual results for CENTURY ENKA and quarterly results for CENTURY ENKA)