CRAFTSMAN AUTOMATION 2022-23 Annual Report Analysis

Mon, 5 Jun

CRAFTSMAN AUTOMATION 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.

CRAFTSMAN AUTOMATION Income Statement Analysis

• Operating income during the year rose 43.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.1% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 21.5% in FY23 as against 24.1% in FY22.
• Depreciation charges increased by 7.6% and finance costs increased by 42.5% YoY, respectively.
• Other income grew by 54.6% YoY.
• Net profit for the year grew by 53.9% YoY.
• Net profit margins during the year grew from 7.4% in FY22 to 7.9% in FY23.

CRAFTSMAN AUTOMATION Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	22,170	31,826	43.6%
Other income	Rs m	81	125	54.6%
Total Revenues	Rs m	22,251	31,951	43.6%
Gross profit	Rs m	5,340	6,841	28.1%
Depreciation	Rs m	2,060	2,216	7.6%
Interest	Rs m	844	1,202	42.5%
Profit before tax	Rs m	2,517	3,548	40.9%
Tax	Rs m	886	1,038	17.1%
Profit after tax	Rs m	1,631	2,510	53.9%
Gross profit margin	%	24.1	21.5
Effective tax rate	%	35.2	29.3
Net profit margin	%	7.4	7.9

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CRAFTSMAN AUTOMATION Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 12 billion as compared to Rs 10 billion in FY22, thereby witnessing an increase of 27.0%.
• Long-term debt stood at Rs 9 billion as compared to Rs 4 billion during FY22, a growth of 142.4%.
• Current assets rose 45% and stood at Rs 15 billion, while fixed assets rose 41% and stood at Rs 23 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 38 billion as against Rs 27 billion during FY22, thereby witnessing a growth of 42%.

CRAFTSMAN AUTOMATION Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,357	13,769	21.2
Current Liabilities	Rs m	9,781	12,424	27.0
Long-term Debt	Rs m	3,738	9,062	142.4
Total Liabilities	Rs m	26,748	38,067	42.3
Current assets	Rs m	10,294	14,879	44.5
Fixed Assets	Rs m	16,454	23,188	40.9
Total Assets	Rs m	26,748	38,067	42.3

CRAFTSMAN AUTOMATION Cash Flow Statement Analysis

• CRAFTSMAN AUTOMATION's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 85.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 238.8% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 730 million, an improvement of 161% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -21 million from the Rs -18 million net cash flows seen during FY22.

CRAFTSMAN AUTOMATION 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	3,272	6,077	85.7%
Cash Flow from Investing Activities	Rs m	-2,089	-7,079	-
Cash Flow from Financing Activities	Rs m	-1,200	730	-
Net Cash Flow	Rs m	-18	-21	-

Current Valuations for CRAFTSMAN AUTOMATION

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 118.8, an improvement from the EPS of Rs 77.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,847.4, stands at 32.5 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 12.8 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	1,049.2	1,506.2
TTM Earnings per share	Rs	77.2	118.8
Diluted earnings per share	Rs	77.2	118.8
Price to Cash Flow	x	13.5	12.8
TTM P/E ratio	x	30.6	32.5
Price / Book Value ratio	x	3.6	4.4
Market Cap	Rs m	41,071	60,574
Dividends per share (Unadj.)	Rs	3.8	11.3

Ratio Analysis for CRAFTSMAN AUTOMATION

• 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 deteriorated and stood at 4.0x during FY23, from 4.0x 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 18.2% during FY23, from 14.4% 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 20.8% during FY23, from 22.3% 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 9.8% during FY23, from 9.3% 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	488	614
Interest coverage	x	4.0	4.0
Debt to equity ratio	x	0.3	0.7
Return on assets	%	9.3	9.8
Return on equity	%	14.4	18.2
Return on capital employed	%	22.3	20.8

To see how CRAFTSMAN AUTOMATION has performed over the last 5 years, please visit here.

CRAFTSMAN AUTOMATION Share Price Performance

Over the last one year, CRAFTSMAN AUTOMATION share price has moved up from Rs 2,359.1 to Rs 3,847.4, registering a gain of Rs 1,488.4 or around 63.1%.

Overall, the S&P BSE SENSEX is up 13.5% over the year.

(To know more, check out historical annual results for CRAFTSMAN AUTOMATION and quarterly results for CRAFTSMAN AUTOMATION)