EMUDHRA 2022-23 Annual Report Analysis

Thu, 1 Jun

EMUDHRA 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.

EMUDHRA Income Statement Analysis

• Operating income during the year rose 36.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 30.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 35.1% in FY23 as against 36.7% in FY22.
• Depreciation charges increased by 21.2% and finance costs decreased by 25.8% YoY, respectively.
• Other income grew by 382.6% YoY.
• Net profit for the year grew by 48.8% YoY.
• Net profit margins during the year grew from 22.5% in FY22 to 24.6% in FY23.

EMUDHRA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,826	2,488	36.2%
Other income	Rs m	11	53	382.6%
Total Revenues	Rs m	1,837	2,541	38.3%
Gross profit	Rs m	670	873	30.3%
Depreciation	Rs m	131	158	21.2%
Interest	Rs m	46	34	-25.8%
Profit before tax	Rs m	505	734	45.4%
Tax	Rs m	93	122	30.7%
Profit after tax	Rs m	411	612	48.8%
Gross profit margin	%	36.7	35.1
Effective tax rate	%	18.5	16.6
Net profit margin	%	22.5	24.6

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EMUDHRA Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 560 million as compared to Rs 701 million in FY22, thereby witnessing an decrease of -20.1%.
• Current assets rose 173% and stood at Rs 2 billion, while fixed assets rose 26% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 3 billion during FY22, thereby witnessing a growth of 77%.

EMUDHRA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	1,523	3,889	155.4
Current Liabilities	Rs m	701	560	-20.1
Long-term Debt	Rs m	198	0	-100.0
Total Liabilities	Rs m	2,591	4,599	77.5
Current assets	Rs m	909	2,483	173.3
Fixed Assets	Rs m	1,683	2,116	25.8
Total Assets	Rs m	2,591	4,599	77.5

EMUDHRA Cash Flow Statement Analysis

• EMUDHRA's cash flow from operating activities (CFO) during FY23 stood at Rs 336 million, an improvement of 55.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 183.1% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 1 billion, an improvement of 698% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 587 million from the Rs 5 million net cash flows seen during FY22.

EMUDHRA 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	216	336	55.4%
Cash Flow from Investing Activities	Rs m	-377	-1,067	-
Cash Flow from Financing Activities	Rs m	160	1,275	697.7%
Net Cash Flow	Rs m	5	587	10,734.7%

Current Valuations for EMUDHRA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 8.2, an improvement from the EPS of Rs 5.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 437.6, stands at 55.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.8 times, while the price to sales ratio stands at 13.2 times.
• The company's price to cash flow (P/CF) ratio stood at 29.5 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	26.0	33.2
TTM Earnings per share	Rs	5.9	8.2
Diluted earnings per share	Rs	5.3	7.8
Price to Cash Flow	x	0.0	29.5
TTM P/E ratio	x	0.0	55.8
Price / Book Value ratio	x	0.0	5.8
Market Cap	Rs m	0	22,740
Dividends per share (Unadj.)	Rs	1.3	1.3

Ratio Analysis for EMUDHRA

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 4.4x during FY23, from 1.3x 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 22.7x during FY23, from 12.1x 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 15.7% during FY23, from 27.0% 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 19.7% during FY23, from 32.0% 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 declined and down at 14.0% during FY23, from 17.6% 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	1.3	4.4
Debtors’ Days	Days	88	99
Interest coverage	x	12.1	22.7
Debt to equity ratio	x	0.1	0.0
Return on assets	%	17.6	14.0
Return on equity	%	27.0	15.7
Return on capital employed	%	32.0	19.7

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

EMUDHRA Share Price Performance

Over the last one year, EMUDHRA share price has moved up from Rs 258.9 to Rs 437.6, registering a gain of Rs 178.7 or around 69.0%.

Meanwhile, the S&P BSE IT Index is trading at Rs 29,613.8 (up 0.9%). Over the last one year it has moved down from 29,814.6 to 29,613.8, a loss of 201 points (down 0.7%).

Overall, the S&P BSE SENSEX is up 12.1% over the year.

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