EXIDE INDUSTRIES 2022-23 Annual Report Analysis

Mon, 17 Jul

EXIDE 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.

EXIDE INDUSTRIES Income Statement Analysis

• Operating income during the year rose 17.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 13.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.6% in FY23 as against 11.0% in FY22.
• Depreciation charges increased by 14.2% and finance costs increased by 22.3% YoY, respectively.
• Other income grew by 101.0% YoY.
• Net profit for the year grew by 18.5% YoY.
• Net profit margins during the year grew from 5.4% in FY22 to 5.5% in FY23.

EXIDE INDUSTRIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	127,892	150,782	17.9%
Other income	Rs m	621	1,247	101.0%
Total Revenues	Rs m	128,513	152,029	18.3%
Gross profit	Rs m	14,024	15,937	13.6%
Depreciation	Rs m	4,395	5,021	14.2%
Interest	Rs m	644	787	22.3%
Profit before tax	Rs m	9,606	11,376	18.4%
Tax	Rs m	2,663	3,148	18.2%
Profit after tax	Rs m	6,943	8,228	18.5%
Gross profit margin	%	11.0	10.6
Effective tax rate	%	27.7	27.7
Net profit margin	%	5.4	5.5

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EXIDE INDUSTRIES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 30 billion as compared to Rs 28 billion in FY22, thereby witnessing an increase of 7.3%.
• Long-term debt stood at Rs 1 billion as compared to Rs 824 million during FY22, a growth of 71.6%.
• Current assets rose 11% and stood at Rs 57 billion, while fixed assets rose 3% and stood at Rs 90 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 147 billion as against Rs 138 billion during FY22, thereby witnessing a growth of 6%.

EXIDE INDUSTRIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	105,837	111,323	5.2
Current Liabilities	Rs m	28,178	30,244	7.3
Long-term Debt	Rs m	824	1,413	71.6
Total Liabilities	Rs m	138,452	146,517	5.8
Current assets	Rs m	51,213	56,910	11.1
Fixed Assets	Rs m	87,240	89,607	2.7
Total Assets	Rs m	138,452	146,517	5.8

EXIDE INDUSTRIES Cash Flow Statement Analysis

• EXIDE INDUSTRIES's cash flow from operating activities (CFO) during FY23 stood at Rs 8 billion, an improvement of 1,154.3% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -8 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -301 million, an improvement of 83% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -573 million from the Rs -2 billion net cash flows seen during FY22.

EXIDE 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	613	7,682	1,154.3%
Cash Flow from Investing Activities	Rs m	663	-7,988	-
Cash Flow from Financing Activities	Rs m	-1,723	-301	-
Net Cash Flow	Rs m	-1,533	-573	-

Current Valuations for EXIDE INDUSTRIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.7, an improvement from the EPS of Rs 8.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 249.5, stands at 25.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.9 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 10.4 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	150.5	177.4
TTM Earnings per share	Rs	8.2	9.7
Diluted earnings per share	Rs	8.2	9.7
Price to Cash Flow	x	11.3	10.4
TTM P/E ratio	x	18.5	25.8
Price / Book Value ratio	x	1.4	1.2
Market Cap	Rs m	145,456	137,913
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for EXIDE INDUSTRIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.9x during FY23, from 1.8x 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 15.5x during FY23, from 15.9x 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 7.4% during FY23, from 6.6% 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 10.8% during FY23, from 9.6% 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 6.2% during FY23, from 5.5% 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	1.8	1.9
Debtors’ Days	Days	3	3
Interest coverage	x	15.9	15.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	5.5	6.2
Return on equity	%	6.6	7.4
Return on capital employed	%	9.6	10.8

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

EXIDE INDUSTRIES Share Price Performance

Over the last one year, EXIDE INDUSTRIES share price has moved up from Rs 149.5 to Rs 249.5, registering a gain of Rs 100.0 or around 66.9%.

Overall, the S&P BSE SENSEX is up 24.4% over the year.

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