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EIMCO ELECON 2022-23 Annual Report Analysis

Wed, 7 Jun

EIMCO ELECON 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.

EIMCO ELECON Income Statement Analysis

• Operating income during the year rose 104.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 303.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 14.1% in FY23 as against 7.2% in FY22.
• Depreciation charges decreased by 3.6% and finance costs increased by 16.0% YoY, respectively.
• Other income declined by 27.6% YoY.
• Net profit for the year grew by 125.0% YoY.
• Net profit margins during the year grew from 10.3% in FY22 to 11.3% in FY23.

EIMCO ELECON Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	844	1,727	104.5%
Other income	Rs m	125	91	-27.6%
Total Revenues	Rs m	970	1,818	87.5%
Gross profit	Rs m	60	244	303.2%
Depreciation	Rs m	81	78	-3.6%
Interest	Rs m	4	5	16.0%
Profit before tax	Rs m	100	251	150.6%
Tax	Rs m	14	56	313.8%
Profit after tax	Rs m	87	195	125.0%
Gross profit margin	%	7.2	14.1
Effective tax rate	%	13.5	22.3
Net profit margin	%	10.3	11.3

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EIMCO ELECON Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 398 million as compared to Rs 531 million in FY22, thereby witnessing an decrease of -24.9%.
• Current assets fell 33% and stood at Rs 2 billion, while fixed assets rose 45% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 1%.

EIMCO ELECON Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	3,328	3,507	5.4
Current Liabilities	Rs m	531	398	-24.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	3,930	3,960	0.8
Current assets	Rs m	2,246	1,514	-32.6
Fixed Assets	Rs m	1,684	2,446	45.3
Total Assets	Rs m	3,930	3,960	0.8

EIMCO ELECON Cash Flow Statement Analysis

• EIMCO ELECON's cash flow from operating activities (CFO) during FY23 stood at Rs 67 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -47 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -24 million, an improvement of 47% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -4 million from the Rs -64 million net cash flows seen during FY22.

EIMCO ELECON 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	-99	67	-
Cash Flow from Investing Activities	Rs m	81	-47	-
Cash Flow from Financing Activities	Rs m	-46	-24	-
Net Cash Flow	Rs m	-64	-4	-

Current Valuations for EIMCO ELECON

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 33.8, an improvement from the EPS of Rs 15.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 588.0, stands at 17.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 2.0 times.
• The company's price to cash flow (P/CF) ratio stood at 8.1 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	146.4	299.3
TTM Earnings per share	Rs	15.0	33.8
Diluted earnings per share	Rs	15.0	33.8
Price to Cash Flow	x	10.7	8.1
TTM P/E ratio	x	21.1	17.4
Price / Book Value ratio	x	0.7	0.6
Market Cap	Rs m	2,417	2,202
Dividends per share (Unadj.)	Rs	2.5	5.0

Ratio Analysis for EIMCO ELECON

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.8x during FY23, from 4.2x 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 51.2x during FY23, from 24.2x 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 improved and stood at 5.6% during FY23, from 2.6% 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 7.3% during FY23, from 3.1% 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 5.1% during FY23, from 2.3% 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	4.2	3.8
Debtors’ Days	Days	1,691	1,117
Interest coverage	x	24.2	51.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	2.3	5.1
Return on equity	%	2.6	5.6
Return on capital employed	%	3.1	7.3

To see how EIMCO ELECON has performed over the last 5 years, please visit here.

EIMCO ELECON Share Price Performance

Over the last one year, EIMCO ELECON share price has moved up from Rs 371.9 to Rs 588.0, registering a gain of Rs 216.1 or around 58.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 38,577.9 (up 1.1%). Over the last one year it has moved up from 26,565.9 to 38,577.9, a gain of 12,012 points (up 45.2%).

Overall, the S&P BSE SENSEX is up 13.0% over the year.

(To know more, check out historical annual results for EIMCO ELECON and quarterly results for EIMCO ELECON)