ELIN ELECTRONICS 2022-23 Annual Report Analysis

Wed, 4 Oct

ELIN ELECTRONICS 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.

ELIN ELECTRONICS Income Statement Analysis

• Operating income during the year fell 1.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 6.1% in FY23 as against 7.2% in FY22.
• Depreciation charges increased by 29.7% and finance costs increased by 2.8% YoY, respectively.
• Other income grew by 137.1% YoY.
• Net profit for the year declined by 31.6% YoY.
• Net profit margins during the year declined from 3.6% in FY22 to 2.5% in FY23.

ELIN ELECTRONICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	10,938	10,754	-1.7%
Other income	Rs m	10	23	137.1%
Total Revenues	Rs m	10,947	10,777	-1.6%
Gross profit	Rs m	790	651	-17.6%
Depreciation	Rs m	144	186	29.7%
Interest	Rs m	127	131	2.8%
Profit before tax	Rs m	529	357	-32.5%
Tax	Rs m	137	89	-35.0%
Profit after tax	Rs m	392	268	-31.6%
Gross profit margin	%	7.2	6.1
Effective tax rate	%	25.9	24.9
Net profit margin	%	3.6	2.5

Emerging Opportunity: Bluechip Bull Run

ELIN ELECTRONICS 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 2.4%.
• Long-term debt stood at Rs 396 million as compared to Rs 340 million during FY22, a growth of 16.6%.
• Current assets rose 43% and stood at Rs 5 billion, while fixed assets rose 30% and stood at Rs 3 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 7 billion as against Rs 5 billion during FY22, thereby witnessing a growth of 38%.

ELIN ELECTRONICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,031	4,931	62.7
Current Liabilities	Rs m	1,853	1,896	2.4
Long-term Debt	Rs m	340	396	16.6
Total Liabilities	Rs m	5,327	7,342	37.8
Current assets	Rs m	3,221	4,612	43.2
Fixed Assets	Rs m	2,106	2,730	29.6
Total Assets	Rs m	5,327	7,342	37.8

ELIN ELECTRONICS Cash Flow Statement Analysis

• ELIN ELECTRONICS's cash flow from operating activities (CFO) during FY23 stood at Rs 623 million, an improvement of 9.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -2 billion, an improvement of 607.3% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 536% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -36 million from the Rs -7 million net cash flows seen during FY22.

ELIN ELECTRONICS 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	571	623	9.1%
Cash Flow from Investing Activities	Rs m	-278	-1,967	-
Cash Flow from Financing Activities	Rs m	-300	1,308	-
Net Cash Flow	Rs m	-7	-36	-

Current Valuations for ELIN ELECTRONICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.6, an decline from the EPS of Rs 9.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 173.4, stands at 32.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.7 times, while the price to sales ratio stands at 0.8 times.
• The company's price to cash flow (P/CF) ratio stood at 19.1 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	267.8	224.4
TTM Earnings per share	Rs	9.6	5.6
Diluted earnings per share	Rs	7.9	5.4
Price to Cash Flow	x	0.0	19.1
TTM P/E ratio	x	0.0	32.1
Price / Book Value ratio	x	0.0	1.8
Market Cap	Rs m	0	8,661
Dividends per share (Unadj.)	Rs	1.0	1.0

Ratio Analysis for ELIN ELECTRONICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.4x during FY23, from 1.7x 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 3.7x during FY23, from 5.2x 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 declined and down at 5.4% during FY23, from 12.9% 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 9.2% during FY23, from 19.5% 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 declined and down at 5.4% during FY23, from 9.7% 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	1.7	2.4
Debtors’ Days	Days	59	67
Interest coverage	x	5.2	3.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	9.7	5.4
Return on equity	%	12.9	5.4
Return on capital employed	%	19.5	9.2

To see how ELIN ELECTRONICS has performed over the last 5 years, please visit here.

ELIN ELECTRONICS Share Price Performance

Over the last one year, ELIN ELECTRONICS share price has moved up from Rs 0.0 to Rs 173.4, registering a gain of Rs 173.4 or around 0.0%.

Meanwhile, the S&P BSE CONSUMER DURABLES Index is trading at Rs 45,437.7 (down 0.6%). Over the last one year it has moved up from 42,153.3 to 45,437.7, a gain of 3,284 points (up 7.8%).

Overall, the S&P BSE SENSEX is up 15.6% over the year.

(To know more, check out historical annual results for ELIN ELECTRONICS and quarterly results for ELIN ELECTRONICS)