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FACT 2022-23 Annual Report Analysis
Mon, 9 Oct

FACT 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.

FACT Income Statement Analysis

  • Operating income during the year rose 40.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 49.0% YoY during the fiscal. Operating profit margins witnessed a fall and down at 12.2% in FY23 as against 11.5% in FY22.
  • Depreciation charges increased by 10.8% and finance costs increased by 1.2% YoY, respectively.
  • Other income grew by 21.9% YoY.
  • Net profit for the year grew by 77.0% YoY.
  • Net profit margins during the year grew from 7.8% in FY22 to 9.9% in FY23.

FACT Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 44,248 61,981 40.1%
Other income Rs m 1,112 1,356 21.9%
Total Revenues Rs m 45,360 63,337 39.6%
Gross profit Rs m 5,067 7,549 49.0%
Depreciation Rs m 272 301 10.8%
Interest Rs m 2,444 2,473 1.2%
Profit before tax Rs m 3,464 6,130 77.0%
Tax Rs m 0 0 0.0
Profit after tax Rs m 3,464 6,130 77.0%
Gross profit margin % 11.5 12.2
Effective tax rate % 0.0 0.0
Net profit margin % 7.8 9.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



RESPONSE PENDING: Your Meeting with Tanushree Banerjee Tomorrow...

FACT Balance Sheet Analysis

  • The company's current liabilities during FY23 stood at Rs 39 billion as compared to Rs 38 billion in FY22, thereby witnessing an increase of 2.7%.
  • Long-term debt down at Rs 51 million as compared to Rs 102 million during FY22, a fall of 50.0%.
  • Current assets rose 13% and stood at Rs 42 billion, while fixed assets rose 22% and stood at Rs 12 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 54 billion as against Rs 47 billion during FY22, thereby witnessing a growth of 15%.

FACT Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 6,620 12,739 92.4
 
Current Liabilities Rs m 38,193 39,238 2.7
Long-term Debt Rs m 102 51 -50.0
Total Liabilities Rs m 47,393 54,343 14.7
 
Current assets Rs m 37,333 42,201 13.0
Fixed Assets Rs m 9,654 11,736 21.6
Total Assets Rs m 47,393 54,343 14.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



FACT Cash Flow Statement Analysis

  • FACT's cash flow from operating activities (CFO) during FY23 stood at Rs 6 billion, an improvement of 265.6% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -7 billion, an improvement of 335.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -45 million on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -1 billion from the Rs 33 million net cash flows seen during FY22.

FACT 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 1,518 5,550 265.6%
Cash Flow from Investing Activities Rs m -1,570 -6,830 -
Cash Flow from Financing Activities Rs m 85 -45 -
Net Cash Flow Rs m 33 -1,325 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for FACT

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.5, an improvement from the EPS of Rs 5.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 510.0, stands at 60.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 25.9 times, while the price to sales ratio stands at 5.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 23.8 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 68.4 95.8
TTM Earnings per share Rs 5.4 9.5
Diluted earnings per share Rs 5.4 9.5
Price to Cash Flow x 22.7 23.8
TTM P/E ratio x 24.5 60.2
Price / Book Value ratio x 12.6 12.0
Market Cap Rs m 83,343 152,887
Dividends per share (Unadj.) Rs 0.0 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for FACT

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x 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 improved and stood at 3.5x during FY23, from 2.4x 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 48.1% during FY23, from 52.3% 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 67.3% during FY23, from 87.9% 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 15.8% during FY23, from 12.5% 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 1.0 1.1
Debtors’ Days Days 145 282
Interest coverage x 2.4 3.5
Debt to equity ratio x 0.0 0.0
Return on assets % 12.5 15.8
Return on equity % 52.3 48.1
Return on capital employed % 87.9 67.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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

FACT Share Price Performance

Over the last one year, FACT share price has moved up from Rs 123.6 to Rs 510.0, registering a gain of Rs 386.5 or around 312.8%.

Overall, the S&P BSE SENSEX is up 12.5% over the year.

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

Annual Report FAQs

What is the current share price of FACT?

FACT currently trades at Rs 732.0 per share. You can check out the latest share price performance of FACT here...

What was the revenue of FACT in FY23? How does it compare to earlier years?

The revenues of FACT stood at Rs 63,337 m in FY23, which was up 39.6% compared to Rs 45,360 m reported in FY22.

FACT's revenue has grown from Rs 19,815 m in FY19 to Rs 63,337 m in FY23.

Over the past 5 years, the revenue of FACT has grown at a CAGR of 33.7%.

What was the net profit of FACT in FY23? How does it compare to earlier years?

The net profit of FACT stood at Rs 6,130 m in FY23, which was up 77.0% compared to Rs 3,464 m reported in FY22.

This compares to a net profit of Rs 3,505 m in FY21 and a net profit of Rs 9,755 m in FY20.

Over the past 5 years, FACT net profit has grown at a CAGR of 39.3%.

What does the cash flow statement of FACT reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of FACT reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 5,550 m as compared to Rs 1,518 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -6,830 m as compared to Rs -1,570 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -45 m as compared to Rs 85 m in FY22.

Here's the cash flow statement of FACT for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations-4,1022,14310,2071,5185,550
From Investments4,1603,356-8,545-1,570-6,830
From Financial Activity-455-5,077-36185-45
Net Cashflow-3974231,30133-1,325

What does the Key Ratio analysis of FACT reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of FACT reveals:

  • Operating profit margins witnessed a fall and down at 12.2% in FY23 as against 11.5% in FY22.
  • Net profit margins grew from 7.8% in FY22 to 9.9% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.0 in FY22.

Here's the ratio/financial analysis of FACT for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)22.545.116.511.512.2
Net Profit Margin (%)8.335.210.87.89.9
Debt to Equity Ratio (x)-1.2-1.8-0.10.00.0

 

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