ESCORTS KUBOTA 2022-23 Annual Report Analysis

Fri, 23 Jun

ESCORTS KUBOTA 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.

ESCORTS KUBOTA Income Statement Analysis

• Operating income during the year rose 15.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.9% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 7.9% in FY23 as against 13.3% in FY22.
• Depreciation charges increased by 13.6% and finance costs decreased by 11.4% YoY, respectively.
• Other income grew by 89.8% YoY.
• Net profit for the year declined by 13.5% YoY.
• Net profit margins during the year declined from 10.1% in FY22 to 7.6% in FY23.

ESCORTS KUBOTA Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	72,827	84,287	15.7%
Other income	Rs m	1,741	3,305	89.8%
Total Revenues	Rs m	74,568	87,592	17.5%
Gross profit	Rs m	9,658	6,674	-30.9%
Depreciation	Rs m	1,321	1,501	13.6%
Interest	Rs m	150	133	-11.4%
Profit before tax	Rs m	9,928	8,346	-15.9%
Tax	Rs m	2,572	1,979	-23.0%
Profit after tax	Rs m	7,356	6,367	-13.5%
Gross profit margin	%	13.3	7.9
Effective tax rate	%	25.9	23.7
Net profit margin	%	10.1	7.6

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ESCORTS KUBOTA Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 17 billion as compared to Rs 14 billion in FY22, thereby witnessing an increase of 26.6%.
• Current assets fell 28% and stood at Rs 49 billion, while fixed assets rose 126% and stood at Rs 52 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 101 billion as against Rs 91 billion during FY22, thereby witnessing a growth of 11%.

ESCORTS KUBOTA Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	75,857	81,744	7.8
Current Liabilities	Rs m	13,555	17,159	26.6
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	91,077	100,848	10.7
Current assets	Rs m	68,072	48,844	-28.2
Fixed Assets	Rs m	22,915	51,814	126.1
Total Assets	Rs m	91,077	100,848	10.7

ESCORTS KUBOTA Cash Flow Statement Analysis

• ESCORTS KUBOTA's cash flow from operating activities (CFO) during FY23 stood at Rs 2 billion, an improvement of 593.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -618 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -712 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 906 million from the Rs -142 million net cash flows seen during FY22.

ESCORTS KUBOTA 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	323	2,239	593.6%
Cash Flow from Investing Activities	Rs m	-18,567	-618	-
Cash Flow from Financing Activities	Rs m	18,099	-712	-
Net Cash Flow	Rs m	-142	906	-

Current Valuations for ESCORTS KUBOTA

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 48.3, an decline from the EPS of Rs 55.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,155.4, stands at 37.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.9 times, while the price to sales ratio stands at 3.4 times.
• The company's price to cash flow (P/CF) ratio stood at 31.5 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	552.0	638.8
TTM Earnings per share	Rs	55.8	48.3
Diluted earnings per share	Rs	66.6	57.6
Price to Cash Flow	x	21.5	31.5
TTM P/E ratio	x	24.4	37.0
Price / Book Value ratio	x	2.6	3.0
Market Cap	Rs m	199,722	247,966
Dividends per share (Unadj.)	Rs	7.0	7.0

Ratio Analysis for ESCORTS KUBOTA

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 2.8x during FY23, from 5.0x 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 63.9x during FY23, from 67.3x 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 declined and down at 7.8% during FY23, from 9.7% 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 10.4% during FY23, from 13.3% 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 6.4% during FY23, from 8.2% 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	5.0	2.8
Debtors’ Days	Days	4	5
Interest coverage	x	67.3	63.9
Debt to equity ratio	x	0.0	0.0
Return on assets	%	8.2	6.4
Return on equity	%	9.7	7.8
Return on capital employed	%	13.3	10.4

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

ESCORTS KUBOTA Share Price Performance

Over the last one year, ESCORTS KUBOTA share price has moved up from Rs 1,508.5 to Rs 2,155.4, registering a gain of Rs 647.0 or around 42.9%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 33,694.7 (down 0.8%). Over the last one year it has moved up from 25,912.7 to 33,694.7, a gain of 7,782 points (up 30.0%).

Overall, the S&P BSE SENSEX is up 20.1% over the year.

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