EXXARO TILES 2022-23 Annual Report Analysis

Thu, 19 Oct

EXXARO TILES 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.

EXXARO TILES Income Statement Analysis

• Operating income during the year fell 2.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 30.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 10.2% in FY23 as against 14.4% in FY22.
• Depreciation charges increased by 15.6% and finance costs decreased by 6.8% YoY, respectively.
• Other income declined by 4.6% YoY.
• Net profit for the year declined by 59.8% YoY.
• Net profit margins during the year declined from 5.6% in FY22 to 2.3% in FY23.

EXXARO TILES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,253	3,171	-2.5%
Other income	Rs m	29	28	-4.6%
Total Revenues	Rs m	3,282	3,199	-2.6%
Gross profit	Rs m	469	324	-30.8%
Depreciation	Rs m	136	158	15.6%
Interest	Rs m	100	93	-6.8%
Profit before tax	Rs m	261	101	-61.2%
Tax	Rs m	80	29	-64.4%
Profit after tax	Rs m	181	73	-59.8%
Gross profit margin	%	14.4	10.2
Effective tax rate	%	30.8	28.3
Net profit margin	%	5.6	2.3

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EXXARO TILES Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 2 billion as compared to Rs 1 billion in FY22, thereby witnessing an increase of 43.7%.
• Long-term debt stood at Rs 289 million as compared to Rs 220 million during FY22, a growth of 31.4%.
• Current assets rose 2% and stood at Rs 3 billion, while fixed assets rose 38% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 4 billion during FY22, thereby witnessing a growth of 15%.

EXXARO TILES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	2,668	2,741	2.7
Current Liabilities	Rs m	1,080	1,552	43.7
Long-term Debt	Rs m	220	289	31.4
Total Liabilities	Rs m	4,048	4,676	15.5
Current assets	Rs m	2,521	2,571	2.0
Fixed Assets	Rs m	1,527	2,104	37.8
Total Assets	Rs m	4,048	4,676	15.5

EXXARO TILES Cash Flow Statement Analysis

• EXXARO TILES's cash flow from operating activities (CFO) during FY23 stood at Rs 232 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -667 million, an improvement of 622.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 278 million, an improvement of 2,021% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -157 million from the Rs 141 million net cash flows seen during FY22.

EXXARO TILES 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	248	232	-6.3%
Cash Flow from Investing Activities	Rs m	-92	-667	-
Cash Flow from Financing Activities	Rs m	-14	278	-
Net Cash Flow	Rs m	141	-157	-

Current Valuations for EXXARO TILES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.6, an decline from the EPS of Rs 4.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 135.8, stands at 95.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.2 times, while the price to sales ratio stands at 1.9 times.
• The company's price to cash flow (P/CF) ratio stood at 23.9 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	72.7	70.9
TTM Earnings per share	Rs	4.0	1.6
Diluted earnings per share	Rs	4.0	1.6
Price to Cash Flow	x	16.4	23.9
TTM P/E ratio	x	28.7	95.6
Price / Book Value ratio	x	2.3	2.0
Market Cap	Rs m	6,141	5,517
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for EXXARO TILES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.7x during FY23, from 2.3x 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 deteriorated and stood at 2.1x during FY23, from 3.6x 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 2.7% during FY23, from 6.8% 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 6.4% during FY23, from 12.5% 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 3.5% during FY23, from 6.9% 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	2.3	1.7
Debtors’ Days	Days	1,138	1,271
Interest coverage	x	3.6	2.1
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.9	3.5
Return on equity	%	6.8	2.7
Return on capital employed	%	12.5	6.4

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

EXXARO TILES Share Price Performance

Over the last one year, EXXARO TILES share price has moved up from Rs 114.6 to Rs 135.8, registering a gain of Rs 21.2 or around 18.5%.

Overall, the S&P BSE SENSEX is up 12.3% over the year.

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