EXCEL INDUSTRIES 2022-23 Annual Report Analysis

Thu, 21 Sep

EXCEL INDUSTRIES 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.

EXCEL INDUSTRIES Income Statement Analysis

• Operating income during the year fell 7.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 45.5% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 11.6% in FY23 as against 19.7% in FY22.
• Depreciation charges increased by 2.3% and finance costs increased by 10.7% YoY, respectively.
• Other income declined by 8.6% YoY.
• Net profit for the year declined by 50.4% YoY.
• Net profit margins during the year declined from 13.7% in FY22 to 7.3% in FY23.

EXCEL INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	11,780	10,898	-7.5%
Other income	Rs m	156	143	-8.6%
Total Revenues	Rs m	11,937	11,041	-7.5%
Gross profit	Rs m	2,315	1,262	-45.5%
Depreciation	Rs m	307	314	2.3%
Interest	Rs m	31	34	10.7%
Profit before tax	Rs m	2,135	1,058	-50.4%
Tax	Rs m	523	258	-50.6%
Profit after tax	Rs m	1,612	799	-50.4%
Gross profit margin	%	19.7	11.6
Effective tax rate	%	24.5	24.4
Net profit margin	%	13.7	7.3

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EXCEL INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 2 billion in FY22, thereby witnessing an decrease of -39.1%.
• Current assets fell 6% and stood at Rs 4 billion, while fixed assets rose 4% and stood at Rs 10 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 15 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 0%.

EXCEL INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	11,493	12,417	8.0
Current Liabilities	Rs m	2,025	1,234	-39.1
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,866	14,926	0.4
Current assets	Rs m	4,785	4,474	-6.5
Fixed Assets	Rs m	10,082	10,452	3.7
Total Assets	Rs m	14,866	14,926	0.4

EXCEL INDUSTRIES Cash Flow Statement Analysis

• EXCEL INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 15.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 12.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -346 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -267 million from the Rs -120 million net cash flows seen during FY22.

EXCEL INDUSTRIES 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	1,089	1,253	15.1%
Cash Flow from Investing Activities	Rs m	-1,041	-1,175	-
Cash Flow from Financing Activities	Rs m	-169	-346	-
Net Cash Flow	Rs m	-120	-267	-

Current Valuations for EXCEL INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.6, an decline from the EPS of Rs 128.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 901.1, stands at 23.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.9 times, while the price to sales ratio stands at 1.0 times.
• The company's price to cash flow (P/CF) ratio stood at 13.8 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	937.2	867.0
TTM Earnings per share	Rs	128.2	63.6
Diluted earnings per share	Rs	128.2	63.6
Price to Cash Flow	x	9.0	13.8
TTM P/E ratio	x	10.7	23.1
Price / Book Value ratio	x	1.4	1.2
Market Cap	Rs m	16,311	15,411
Dividends per share (Unadj.)	Rs	22.5	11.3

Ratio Analysis for EXCEL INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 3.6x during FY23, from 2.4x 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 32.1x during FY23, from 70.4x 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 6.4% during FY23, from 14.0% 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 8.8% during FY23, from 18.8% 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 5.6% during FY23, from 11.1% 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	2.4	3.6
Debtors’ Days	Days	617	524
Interest coverage	x	70.4	32.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.1	5.6
Return on equity	%	14.0	6.4
Return on capital employed	%	18.8	8.8

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

EXCEL INDUSTRIES Share Price Performance

Over the last one year, EXCEL INDUSTRIES share price has moved down from Rs 1,322.1 to Rs 901.1, registering a loss of Rs 421.0 or around 31.8%.

Overall, the S&P BSE SENSEX is up 11.0% over the year.

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