CENTURY TEXTILES 2022-23 Annual Report Analysis

Wed, 5 Jul

CENTURY TEXTILES 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 TEXTILES Income Statement Analysis

• Operating income during the year rose 16.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 48.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 13.7% in FY23 as against 10.8% in FY22.
• Depreciation charges decreased by 1.6% and finance costs increased by 3.3% YoY, respectively.
• Other income declined by 36.1% YoY.
• Net profit for the year grew by 71.6% YoY.
• Net profit margins during the year grew from 3.7% in FY22 to 5.5% in FY23.

CENTURY TEXTILES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	41,310	47,997	16.2%
Other income	Rs m	431	275	-36.1%
Total Revenues	Rs m	41,740	48,272	15.6%
Gross profit	Rs m	4,444	6,597	48.5%
Depreciation	Rs m	2,307	2,271	-1.6%
Interest	Rs m	522	539	3.3%
Profit before tax	Rs m	2,046	4,063	98.6%
Tax	Rs m	504	1,417	180.9%
Profit after tax	Rs m	1,542	2,646	71.6%
Gross profit margin	%	10.8	13.7
Effective tax rate	%	24.7	34.9
Net profit margin	%	3.7	5.5

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CENTURY TEXTILES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 34 billion as compared to Rs 28 billion in FY22, thereby witnessing an increase of 18.9%.
• Long-term debt stood at Rs 4 billion as compared to Rs 4 billion during FY22, a growth of 4.5%.
• Current assets rose 31% and stood at Rs 39 billion, while fixed assets fell 5% and stood at Rs 45 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 84 billion as against Rs 77 billion during FY22, thereby witnessing a growth of 9%.

CENTURY TEXTILES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	37,188	38,868	4.5
Current Liabilities	Rs m	28,418	33,788	18.9
Long-term Debt	Rs m	3,818	3,991	4.5
Total Liabilities	Rs m	76,819	84,036	9.4
Current assets	Rs m	29,894	39,265	31.3
Fixed Assets	Rs m	46,925	44,771	-4.6
Total Assets	Rs m	76,819	84,036	9.4

CENTURY TEXTILES Cash Flow Statement Analysis

• CENTURY TEXTILES's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -6 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs -206 million net cash flows seen during FY22.

CENTURY TEXTILES 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	-511	2,710	-
Cash Flow from Investing Activities	Rs m	-1,762	1,385	-
Cash Flow from Financing Activities	Rs m	2,068	-5,535	-
Net Cash Flow	Rs m	-206	-1,440	-

Current Valuations for CENTURY TEXTILES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.7, an improvement from the EPS of Rs 13.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 896.4, stands at 37.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.6 times, while the price to sales ratio stands at 2.1 times.
• The company's price to cash flow (P/CF) ratio stood at 17.5 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	369.8	429.7
TTM Earnings per share	Rs	13.8	23.7
Diluted earnings per share	Rs	13.8	23.7
Price to Cash Flow	x	24.8	17.5
TTM P/E ratio	x	61.8	37.6
Price / Book Value ratio	x	2.2	2.2
Market Cap	Rs m	81,516	85,883
Dividends per share (Unadj.)	Rs	4.0	5.0

Ratio Analysis for CENTURY TEXTILES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.2x during FY23, from 1.1x 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 8.5x during FY23, from 4.9x 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 6.8% during FY23, from 4.1% 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 10.7% during FY23, from 6.3% 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 3.8% during FY23, from 2.7% 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	1.1	1.2
Debtors’ Days	Days	2	1
Interest coverage	x	4.9	8.5
Debt to equity ratio	x	0.1	0.1
Return on assets	%	2.7	3.8
Return on equity	%	4.1	6.8
Return on capital employed	%	6.3	10.7

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

CENTURY TEXTILES Share Price Performance

Over the last one year, CENTURY TEXTILES share price has moved up from Rs 793.4 to Rs 896.4, registering a gain of Rs 103.0 or around 13.0%.

Overall, the S&P BSE SENSEX is up 22.9% over the year.

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