EICHER MOTORS 2022-23 Annual Report Analysis

Sun, 6 Aug

EICHER 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.

EICHER MOTORS Income Statement Analysis

• Operating income during the year rose 40.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 68.4% YoY during the fiscal. Operating profit margins witnessed a fall and down at 26.0% in FY23 as against 21.7% in FY22.
• Depreciation charges increased by 16.4% and finance costs increased by 49.2% YoY, respectively.
• Other income grew by 35.0% YoY.
• Net profit for the year grew by 73.8% YoY.
• Net profit margins during the year grew from 16.3% in FY22 to 20.2% in FY23.

EICHER MOTORS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	102,978	144,422	40.2%
Other income	Rs m	4,408	5,951	35.0%
Total Revenues	Rs m	107,387	150,373	40.0%
Gross profit	Rs m	22,324	37,588	68.4%
Depreciation	Rs m	4,519	5,262	16.4%
Interest	Rs m	188	280	49.2%
Profit before tax	Rs m	22,025	37,996	72.5%
Tax	Rs m	5,259	8,857	68.4%
Profit after tax	Rs m	16,766	29,139	73.8%
Gross profit margin	%	21.7	26.0
Effective tax rate	%	23.9	23.3
Net profit margin	%	16.3	20.2

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EICHER MOTORS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 32 billion as compared to Rs 29 billion in FY22, thereby witnessing an increase of 11.8%.
• Long-term debt stood at Rs 630 million as compared to Rs 0 million during FY22, a fall of 0.0%.
• Current assets fell 34% and stood at Rs 37 billion, while fixed assets rose 47% and stood at Rs 155 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 192 billion as against Rs 161 billion during FY22, thereby witnessing a growth of 19%.

EICHER MOTORS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	125,670	149,320	18.8
Current Liabilities	Rs m	28,934	32,346	11.8
Long-term Debt	Rs m	0	630	0.0
Total Liabilities	Rs m	161,398	191,976	18.9
Current assets	Rs m	56,193	36,832	-34.5
Fixed Assets	Rs m	105,205	155,144	47.5
Total Assets	Rs m	161,398	191,976	18.9

EICHER MOTORS Cash Flow Statement Analysis

• EICHER MOTORS's cash flow from operating activities (CFO) during FY23 stood at Rs 28 billion, an improvement of 86.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -24 billion, an improvement of 146.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -4 billion, an improvement of 30% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 84 million from the Rs -496 million net cash flows seen during FY22.

EICHER 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	15,270	28,475	86.5%
Cash Flow from Investing Activities	Rs m	-9,833	-24,216	-
Cash Flow from Financing Activities	Rs m	-5,934	-4,174	-
Net Cash Flow	Rs m	-496	84	-

Current Valuations for EICHER MOTORS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 106.6, an improvement from the EPS of Rs 61.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,359.8, stands at 32.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.2 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 24.6 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	376.6	528.2
TTM Earnings per share	Rs	61.3	106.6
Diluted earnings per share	Rs	61.2	106.4
Price to Cash Flow	x	31.6	24.6
TTM P/E ratio	x	41.7	32.4
Price / Book Value ratio	x	5.6	5.7
Market Cap	Rs m	697,960	847,215
Dividends per share (Unadj.)	Rs	21.0	37.0

Ratio Analysis for EICHER MOTORS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.1x during FY23, from 1.9x 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 136.6x during FY23, from 118.3x 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 19.5% during FY23, from 13.3% 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 25.5% during FY23, from 17.7% 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 15.3% during FY23, from 10.5% 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	1.9	1.1
Debtors’ Days	Days	1	1
Interest coverage	x	118.3	136.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.5	15.3
Return on equity	%	13.3	19.5
Return on capital employed	%	17.7	25.5

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

EICHER MOTORS Share Price Performance

Over the last one year, EICHER MOTORS share price has moved up from Rs 3,087.5 to Rs 3,359.8, registering a gain of Rs 272.4 or around 8.8%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 35,092.9 (down 0.4%). Over the last one year it has moved up from 29,365.6 to 35,092.9, a gain of 5,727 points (up 19.5%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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