ELGI RUBBER 2022-23 Annual Report Analysis

Mon, 7 Aug

ELGI RUBBER 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.

ELGI RUBBER Income Statement Analysis

• Operating income during the year rose 1.3% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.2% in FY23 as against 0.7% in FY22.
• Depreciation charges decreased by 9.8% and finance costs increased by 48.9% YoY, respectively.
• Other income grew by 20.4% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.2% in FY22 to 1.7% in FY23.

ELGI RUBBER Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,896	3,945	1.3%
Other income	Rs m	209	252	20.4%
Total Revenues	Rs m	4,105	4,197	2.2%
Gross profit	Rs m	-28	245	NA
Depreciation	Rs m	181	163	-9.8%
Interest	Rs m	156	233	48.9%
Profit before tax	Rs m	-156	101	NA
Tax	Rs m	8	33	334.5%
Profit after tax	Rs m	-164	68	NA
Gross profit margin	%	-0.7	6.2
Effective tax rate	%	-4.9	32.9
Net profit margin	%	-4.2	1.7

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ELGI RUBBER Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 2.9%.
• Long-term debt stood at Rs 763 million as compared to Rs 635 million during FY22, a growth of 20.0%.
• Current assets fell 2% and stood at Rs 2 billion, while fixed assets rose 15% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 7%.

ELGI RUBBER Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,715	1,840	7.3
Current Liabilities	Rs m	2,649	2,725	2.9
Long-term Debt	Rs m	635	763	20.0
Total Liabilities	Rs m	4,711	5,052	7.2
Current assets	Rs m	2,177	2,133	-2.0
Fixed Assets	Rs m	2,534	2,919	15.2
Total Assets	Rs m	4,711	5,052	7.2

ELGI RUBBER Cash Flow Statement Analysis

• ELGI RUBBER's cash flow from operating activities (CFO) during FY23 stood at Rs 268 million, an improvement of 69.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -287 million, an improvement of 203.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 16 million, an improvement of 113% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -3 million from the Rs -57 million net cash flows seen during FY22.

ELGI RUBBER 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	158	268	69.5%
Cash Flow from Investing Activities	Rs m	-94	-287	-
Cash Flow from Financing Activities	Rs m	-121	16	-
Net Cash Flow	Rs m	-57	-3	-

Current Valuations for ELGI RUBBER

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.3, an improvement from the EPS of Rs -3.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 54.1, stands at 40.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.5 times, while the price to sales ratio stands at 0.7 times.
• The company's price to cash flow (P/CF) ratio stood at 8.0 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	77.8	78.8
TTM Earnings per share	Rs	-3.3	1.3
Diluted earnings per share	Rs	-3.3	1.3
Price to Cash Flow	x	0.0	8.0
TTM P/E ratio	x	0.0	40.1
Price / Book Value ratio	x	1.1	1.0
Market Cap	Rs m	1,861	1,846
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for ELGI RUBBER

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.8x during FY23, from 0.8x 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 1.4x during FY23, from 0.0x 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 3.7% during FY23, from -9.5% 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 12.8% during FY23, from 0.0% 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 5.9% during FY23, from -0.2% 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	0.8	0.8
Debtors’ Days	Days	69	62
Interest coverage	x	0.0	1.4
Debt to equity ratio	x	0.4	0.4
Return on assets	%	-0.2	5.9
Return on equity	%	-9.5	3.7
Return on capital employed	%	0.0	12.8

To see how ELGI RUBBER has performed over the last 5 years, please visit here.

ELGI RUBBER Share Price Performance

Over the last one year, ELGI RUBBER share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.4% over the year.

(To know more, check out historical annual results for ELGI RUBBER and quarterly results for ELGI RUBBER)