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IGARASHI MOTORS 2022-23 Annual Report Analysis

Wed, 19 Jul

IGARASHI MOTORS 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.

IGARASHI MOTORS Income Statement Analysis

• Operating income during the year rose 17.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 9.3% in FY23 as against 8.5% in FY22.
• Depreciation charges increased by 6.0% and finance costs increased by 78.2% YoY, respectively.
• Other income grew by 15.6% YoY.
• Net profit for the year grew by 340.2% YoY.
• Net profit margins during the year grew from 0.2% in FY22 to 0.8% in FY23.

IGARASHI MOTORS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,564	6,562	17.9%
Other income	Rs m	69	80	15.6%
Total Revenues	Rs m	5,633	6,643	17.9%
Gross profit	Rs m	471	611	29.8%
Depreciation	Rs m	445	472	6.0%
Interest	Rs m	72	129	78.2%
Profit before tax	Rs m	23	91	293.3%
Tax	Rs m	11	39	243.8%
Profit after tax	Rs m	12	52	340.2%
Gross profit margin	%	8.5	9.3
Effective tax rate	%	48.6	42.5
Net profit margin	%	0.2	0.8

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IGARASHI MOTORS 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 28.6%.
• Long-term debt down at Rs 82 million as compared to Rs 201 million during FY22, a fall of 59.3%.
• Current assets rose 20% and stood at Rs 3 billion, while fixed assets fell 1% and stood at Rs 4 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 7 billion during FY22, thereby witnessing a growth of 7%.

IGARASHI MOTORS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	4,383	4,395	0.3
Current Liabilities	Rs m	1,813	2,331	28.6
Long-term Debt	Rs m	201	82	-59.3
Total Liabilities	Rs m	6,766	7,262	7.3
Current assets	Rs m	2,743	3,290	19.9
Fixed Assets	Rs m	4,023	3,972	-1.3
Total Assets	Rs m	6,766	7,262	7.3

IGARASHI MOTORS Cash Flow Statement Analysis

• IGARASHI MOTORS's cash flow from operating activities (CFO) during FY23 stood at Rs 340 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -316 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -36 million, an improvement of 85% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -11 million from the Rs -55 million net cash flows seen during FY22.

IGARASHI MOTORS 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	728	340	-53.2%
Cash Flow from Investing Activities	Rs m	-546	-316	-
Cash Flow from Financing Activities	Rs m	-237	-36	-
Net Cash Flow	Rs m	-55	-11	-

Current Valuations for IGARASHI MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.7, an improvement from the EPS of Rs 0.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 492.0, stands at 295.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.5 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 22.2 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	176.7	208.5
TTM Earnings per share	Rs	0.4	1.7
Diluted earnings per share	Rs	0.4	1.7
Price to Cash Flow	x	24.8	22.2
TTM P/E ratio	x	948.3	295.6
Price / Book Value ratio	x	3.2	2.6
Market Cap	Rs m	13,962	11,606
Dividends per share (Unadj.)	Rs	0.0	1.0

Ratio Analysis for IGARASHI MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY23, from 1.5x 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 1.7x during FY23, from 1.3x 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 1.2% during FY23, from 0.3% 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 4.9% during FY23, from 2.1% 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 2.5% during FY23, from 1.2% 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	1.5	1.4
Debtors’ Days	Days	884	976
Interest coverage	x	1.3	1.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.2	2.5
Return on equity	%	0.3	1.2
Return on capital employed	%	2.1	4.9

To see how IGARASHI MOTORS has performed over the last 5 years, please visit here.

IGARASHI MOTORS Share Price Performance

Over the last one year, IGARASHI MOTORS share price has moved up from Rs 324.0 to Rs 492.0, registering a gain of Rs 168.1 or around 51.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 41,819.6 (up 0.5%). Over the last one year it has moved up from 28,302.0 to 41,819.6, a gain of 13,518 points (up 47.8%).

Overall, the S&P BSE SENSEX is up 22.7% over the year.

(To know more, check out historical annual results for IGARASHI MOTORS and quarterly results for IGARASHI MOTORS)